# Leaving UAE with car finance



## slr722 (Feb 8, 2015)

Hi Guys

Is it possible to end a car finance deal early with the bank if I am planning to leave the UAE. Everything seems good, just my car has 3 years of payments left. Can I return the car the finance company or do something early or do I need to settle the finance?

Thanks


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## Stevesolar (Dec 21, 2012)

Hi,
You need to contact finance company for a settlement figure.
You can then settle finance and request a clearance letter.
Only then can you sell the car - as the clearance letter proves it belongs to you and not the finance company.
Cheers
Steve


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## Sunder (Mar 11, 2014)

slr722 said:


> Hi Guys
> 
> Is it possible to end a car finance deal early with the bank if I am planning to leave the UAE. Everything seems good, just my car has 3 years of payments left. Can I return the car the finance company or do something early or do I need to settle the finance?
> 
> Thanks


Yes, you can.

One of my friends was relocating to the US and he paid off all the amount remaining( in your case 3 yrs installments) to the bank. bank charged 1% more as processing fee.

Then the ownership is transferred to you, you can sell the car then.

Thanks,
Sunder.


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## Chocoholic (Oct 29, 2012)

You can see if the company you bought the car from will do a buy back deal. Had a friend do this with a Lexus. He bought a car, had finance, then had to leave, they took the car back and gave him X amount and he paid a balance off on the loan.

If they won't do that, you don't have to pay off the loan before selling the car. Find a buyer and get them to take the cash with you to the bank and pay it directly towards the loan, issue the clearance letter on the spot, go and do the transfer - I've done that so have personal experience of it.


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## slr722 (Feb 8, 2015)

Can I sell the car and pay the finance with that money as it is a lot of cash for me to pay off at the moment


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## Sunder (Mar 11, 2014)

slr722 said:


> Can I sell the car and pay the finance with that money as it is a lot of cash for me to pay off at the moment


As of now, the car is owned by the bank. Thus, you cannot sell the car before clearing the pending amount and getting the car under your name.


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## slr722 (Feb 8, 2015)

Can I give the car back to the bank or am I tied into contract?


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## Chocoholic (Oct 29, 2012)

slr722 said:


> Can I give the car back to the bank or am I tied into contract?


No you're tied to the contract. You HAVE to clear the car finance. Hence why I said, when I did this, I found a buyer, he came with me to the bank and gave the money directly to the bank to clear the loan. That is the only way you can do it. You cannot sell the car without a clearance letter from the bank to say the loan has been paid.


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## Edino (Sep 22, 2013)

Chocoholic said:


> You can see if the company you bought the car from will do a buy back deal. Had a friend do this with a Lexus. He bought a car, had finance, then had to leave, they took the car back and gave him X amount and he paid a balance off on the loan.
> 
> If they won't do that, you don't have to pay off the loan before selling the car. Find a buyer and get them to take the cash with you to the bank and pay it directly towards the loan, issue the clearance letter on the spot, go and do the transfer - I've done that so have personal experience of it.


I have gone trough the procedure just a few months ago; there is no clearance letter issued anymore by the bank. Also, the process is not completed anymore the same day. 

Once the buyer goes with the owner to the bank (In my case it was HSBC), the buyer deposits the outstanding loan value in the loan account, and after 2 days / max 3 working days you will receive a message from RTA that the loan has been cleared, and after that the car can be transferred to the new owner. Apparently, this is a new process issued by the central bank to reduce fraud.


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## Chocoholic (Oct 29, 2012)

Edino said:


> I have gone trough the procedure just a few months ago; there is no clearance letter issued anymore by the bank. Also, the process is not completed anymore the same day.
> 
> Once the buyer goes with the owner to the bank (In my case it was HSBC), the buyer deposits the outstanding loan value in the loan account, and after 2 days / max 3 working days you will receive a message from RTA that the loan has been cleared, and after that the car can be transferred to the new owner. Apparently, this is a new process issued by the central bank to reduce fraud.


Thanks for the update on that. Things change so often here. Good to know.


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