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The Car Buyers Dubai Promise: Instant Valuation, Instant Cash

  • Sep 9
  • 3 min read

Owning a car in Dubai comes with both convenience and responsibility. But what happens if your car is financed and you’re thinking about scrapping it? Maybe the vehicle has been in an accident, has become too expensive to repair, or you simply want to get rid of it. Many car owners ask: “Can I scrap a financed car in Dubai?”

The short answer is no — you cannot legally scrap a car that still has outstanding finance. But let’s dive deeper into the reasons why, the legal process, and the solutions available to you.

cash for cars

Why You Cannot Scrap a Financed Car in Dubai

When you buy a car through bank financing, the vehicle is technically owned by the bank until the loan is cleared. The bank places a mortgage or lien on the car through the Roads and Transport Authority (RTA).

That means:

  • The bank has a legal right over the car.

  • You cannot sell, transfer, or scrap it until the loan is fully paid.

  • Attempting to scrap it while still under finance is illegal and can cause legal trouble.


What You Must Do Before Scrapping a Financed Car

If you want to scrap a car that still has an active loan, here are the steps you’ll need to take:

1. Clear Your Car Loan

Pay off the outstanding loan amount with the bank. Once the loan is settled, the bank will issue a loan clearance letter.

2. Remove the Mortgage at RTA

Take the clearance letter to the RTA so they can update the system and remove the mortgage from your car.

3. Obtain a Clearance Certificate

The RTA will provide a clearance certificate that proves the car is free of any financial liabilities.

4. Scrap Your Car Legally

Now you are free to scrap your car with an authorized scrap car buyer in Dubai, like Scrap My Car UAE.

Alternatives If You Cannot Clear the Loan

Not everyone can pay off the full loan immediately, especially if the car is damaged. Here are some options to consider:

  • Sell the Car to Pay the Loan If the car is still in good condition, you can try selling it for cash and use the money to clear the bank loan.

  • Negotiate With Your Bank Some banks may offer settlement options, allowing you to pay a reduced amount in certain cases.

  • Seek Professional Help Companies like Scrap My Car UAE can guide you through the process and explain your legal options before you scrap or sell.

Why Choose Scrap My Car UAE?

At Scrap My Car UAE, we make the scrapping process simple, legal, and hassle-free. We offer:

✅ Free valuation of your car ✅ Instant cash offers after loan clearance ✅ Assistance with all RTA paperwork ✅ Free car pickup anywhere in Dubai and across the UAE

Our goal is to ensure you get the best value for your old car while staying fully compliant with Dubai’s laws.

Final Thoughts

You cannot directly scrap a financed car in Dubai. To do it legally, you must first settle the loan and remove the mortgage. Once that’s done, scrapping your car becomes straightforward and stress-free.

If you’re ready to scrap your car after clearing the loan, or if you need help understanding the process, Scrap My Car UAE is here to guide you.

📞 WhatsApp us at 055 745 83 22

🌐 Visit us at scrapmycaruae.com 📘 Follow us on Facebook: scrapmycarUAE

 
 
 

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