Ahmed Leasing a car in the UAE offers flexibility and affordability, making it an attractive option for residents. However, what happens if you need to sell or transfer a leased car? Since the vehicle is technically owned by the leasing company, selling it is not as straightforward as selling a fully owned car. But don’t worry—there are solutions!
In this detailed guide, we will walk you through everything you need to know about transferring or selling a leased car in the UAE, including legal options, step-by-step processes, costs, and expert tips to avoid unnecessary fees.
Can You Sell a Leased Car in the UAE?
The simple answer is no, you cannot directly sell a leased car because you do not own it. The leasing company retains ownership throughout the lease term. However, you do have several options if you want to exit the lease early:
- Lease Buyout & Resale: Buy the car from the leasing company and then sell it to a buyer.
- Lease Transfer: Transfer your lease contract to another person who takes over the remaining payments.
- Early Lease Termination: Pay off the remaining lease amount and return the car to the leasing company.
Each of these options comes with its own process and cost implications, so let’s explore them in detail.
Option 1: Lease Buyout & Resale
If you want to sell your leased car, the most effective way is to first buy it from the leasing company and then sell it as a used car. This is called a lease buyout.
Steps to Sell a Leased Car in the UAE:
- Review Your Lease Agreement
Check if your lease includes a buyout option and whether there are any penalties or fees. - Contact the Leasing Company
Request a payoff quote, which is the amount required to purchase the car from them. - Compare the Market Value
Before buying, check current market prices to ensure the buyout price is lower than the resale value. - Secure Financing (If Needed)
If you need funds, consider financing options to buy the car before selling it. - Complete the Buyout Process
Once you make the payment, ownership is transferred to you. - Sell the Car Like Any Other Used Vehicle
Now that you officially own the car, you can sell it privately, through a dealership, or on platforms like Dubizzle or Emco cars.
Option 2: Lease Transfer (Lease Swap)
A lease transfer allows you to shift your lease obligations to another individual who takes over the remaining payments. This is a great option if you want to exit your lease without paying heavy penalties.
Steps to Transfer a Leased Car in UAE:
- Check Lease Transfer Eligibility
Contact your leasing company to confirm if transfers are allowed and what conditions apply. - Find a Buyer for Your Lease
List your lease on car marketplaces, lease swap websites, or social media to find a willing buyer. - Buyer Qualification Check
The new leaseholder must meet the leasing company’s financial criteria (salary, credit history, etc.). - Complete the Lease Transfer Process
Once approved, both parties sign the necessary documents, and the new person takes over the lease. - Handover the Car
After official approval, the new leaseholder assumes all responsibilities, and you are no longer liable.
Option 3: Early Lease Termination
If your leasing company does not allow transfers, you may need to pay off the remaining lease balance and return the car.
How to End a Lease Early in UAE:
- Request an Early Termination Quote
Contact the leasing provider for a breakdown of the remaining payments and potential penalty fees. - Check for Penalties
Some contracts require paying a percentage of remaining payments or an early termination fee. - Return the Car
If you accept the terms, return the vehicle, ensuring it is in good condition to avoid extra fees.
Costs Associated with Selling or Transferring a Leased Car
Depending on your chosen method, here are the common costs you may face:
| Option | Potential Costs |
|---|---|
| Lease Buyout | Payoff amount, transfer fees, VAT |
| Lease Transfer | Transfer fee, processing fee |
| Early Termination | Penalty fees, outstanding lease balance |
Always check your lease agreement to avoid hidden charges.
FAQs About Selling or Transferring a Leased Car in UAE
Can I sell my leased car before the lease ends?
No, but you can buy it first and then resell it.
Is lease transfer legal in the UAE?
Yes, if the leasing company allows it and the new leaseholder qualifies.
How much does it cost to exit a car lease early?
Costs vary but may include early termination fees and remaining payments.
Can I negotiate my lease buyout price?
Yes, leasing companies sometimes offer discounts on buyouts—always negotiate!
Where can I transfer my car lease in the UAE?
Platforms like Emco Cars , Dubizzle, or lease swap services can help.
What happens if I return a leased car with damage?
You may be charged for excess wear and tear, so it’s best to repair minor issues beforehand