Cost of Vehicle Ownership Transfer in Dubai: How Much Do You Have to Pay?

ِHave you ever thought about the cost of vehicle ownership transfer in Dubai? Car ownership transfer in Dubai is a legal procedure that ensures accountability, protects both parties, and ensures your car documents are in good standing with the Roads and Transport Authority (RTA). When selling your vehicle or purchasing a new or second-hand one, knowing how much vehicle ownership transfer costs in Dubai can prevent you from experiencing unnecessary fines and make the process simpler. In this article, we will investigate everything you should know concerning the charges, conditions, and hidden costs involved in transferring car ownership.

Why Vehicle Ownership Transfer is Important in Dubai

Dubai controls car ownership tightly. The law requires the transfer of a car sale or ownership to be recorded and transferred legally by the RTA. If you don’t complete this step, you could face fines of up to AED 3,000 and even vehicle impoundment. on reliable websites such as shozon.com, you can be sure about the legal process.  Here’s why the transfer is crucial:

• Legal Protection: The registered owner will be liable for all traffic violations, accidents, and liabilities. If the name is not changed, the former owner might be held liable for actions they didn’t commit.
• Insurance Coverage: Insurance policies should be registered in the name of the new vehicle owner. Otherwise, claims may be rejected.
• Loan Settlements: Vehicles that are under a loan or mortgage should be settled before a transfer can be done.
• Avoiding Fines: In the absence of a valid transfer, any pending fines or issues can come back to the seller.

Breakdown of Vehicle Ownership Transfer Fees in Dubai

The cost of vehicle ownership transfer in Dubai depends on the type and category of the vehicle. Here’s the detail:

If you want to know how to check the UAE VIN number, click here and read this article.

Additional Charges You Should Know About

There are also a few additional expenses, in addition to the cost of vehicle ownership transfer in Dubai, that often surprise first-time buyers or sellers:

These extras depend on your personal choices and vehicle specifications. For example, if you choose a Dubai-branded plate or a luxury number, your overall cost will be significantly higher.

Other Hidden or Related Costs You Should Know About

Beyond the official cost of vehicle ownership transfer in Dubai, there are several additional costs that car buyers and sellers should be aware of. These charges may not be immediately obvious, but they can significantly impact the total amount you pay during the ownership transfer process. From mandatory inspections to insurance and settling existing fines, these related expenses are often part of the transaction, especially for used vehicles.

·        Vehicle Inspection Fees

If the vehicle you are buying or selling is more than three years old, or if its registration has expired, the RTA requires a technical vehicle inspection before the transfer of ownership. This is a requirement to make sure the vehicle is roadworthy and meets Dubai’s rules on emissions and mechanical safety. The fee for such an inspection is typically between AED 170 and AED 350, varying by testing center and vehicle type. Such inspections are conducted exclusively at RTA-approved Vehicle Testing Centers like Tasjeel, Shamil, or Wasel.

·        Insurance Fees

Another significant expense is vehicle insurance. In Dubai, the car should be insured under the name of the new owner before the transfer can be completed. Insurance can range from a very high amount based on various factors like the age and model of the car, the age and record of the driver, and third-party or comprehensive insurance. On average, you would have to pay between AED 1,000 and AED 3,000 per year for insurance. Nonetheless, younger, inexperienced drivers or more expensive cars may be charged more.

·        Paying Outstanding Fines, Salik Violations, or Loans

One of the most common hidden costs during a vehicle transfer in Dubai involves clearing existing liabilities. If the vehicle has any outstanding traffic fines, Salik (toll) charges, or if it’s currently under a bank loan or finance plan, these must be fully settled before the ownership transfer can be completed. In many cases, buyers and sellers are surprised to discover these hidden obligations at the last minute. Depending on the situation, these liabilities can range from a few hundred dirhams to several thousand. The seller is typically responsible for clearing these dues, but it’s important for both parties to check the status using the RTA or Dubai Police portals.

Do you want to know how to check a second-hand car in Dubai? Read this article.

Who Pays the Transfer Costs: Buyer or Seller?

In Dubai, it’s generally expected that the buyer bears the cost of the ownership transfer, including all RTA fees and documentation charges. At shozon.com, you can be sure about the legality of the cars you buy. However, this isn’t a legal rule, it’s up to both parties to decide. Always put your agreement in writing to avoid disputes later.

Step-by-Step Process to Transfer Vehicle Ownership in Dubai

We understood the cost of vehicle ownership transfer in Dubai. Now let’s simplify the process into seven easy steps:

1. Clear Dues: Ensure all traffic fines, salik balances, and loans are cleared by the seller.
2. Technical Inspection (if applicable): Get the vehicle inspected at an RTA center if it’s over 3 years old.
3. Arrange Insurance: The buyer should purchase valid insurance under their name.
4. Visit an RTA Service Center: Both parties must be present at the RTA’s Customer Happiness Center or use the Dubai Drive app.
5. Submit Required Documents: Including Emirates ID, vehicle registration card, and proof of insurance.
6. Pay Fees: Complete payment for transfer, plates, and additional services.
7. Receive New Registration: The buyer gets a new Mulkiya (registration card) under their name.

Documents Required for Vehicle Ownership Transfer

More than the cost of vehicle ownership transfer in Dubai, You need to know about the documents. Here’s a checklist to avoid delays:

For the Seller:

• Original Emirates ID
• Vehicle registration card (Mulkiya)
• Bank clearance letter (if the vehicle had a loan)

For the Buyer:

• Original Emirates ID
• Valid UAE driving license
• Insurance certificate under their name

You will need a sales agreement, especially if there’s a private transaction outside dealerships.

Can You Transfer Vehicle Ownership Online in Dubai?

In most cases, you can pay the cost of vehicle ownership transfer in Dubai online through:

• Dubai Drive App
• RTA Website (rta.ae)

Here’s how the online process works:

1. Log in with your UAE Pass credentials.
2. Choose “Change Vehicle Ownership” service.
3. Upload scanned copies of required documents.
4. Clear any pending fines.
5. Pay the applicable transfer fee.
6. Download your new Mulkiya digitally.

This process is safe, secure, and saves you time compared to visiting a center in person.

Tips for a Smooth Vehicle Transfer in Dubai

Transferring car ownership in Dubai is not stressful if you’re well-prepared. Here are some helpful tips to make the process faster, smoother, and error-free:

1. Use RTA-approved centers only

Always complete inspections and ownership transfers at authorized RTA service centers or testing facilities. These centers follow official guidelines and ensure your documentation is valid and accepted.

2. Clear all outstanding dues in advance

Before initiating the transfer, make sure any traffic fines, Salik toll charges, or remaining loan balances on the vehicle are settled. Doing this ahead of time saves you from unexpected delays or rejections.

• Secure insurance ahead of time

Make sure the vehicle is insured under the buyer’s name before attempting to transfer ownership. Without valid insurance, the RTA will not process the transfer.

• Agree on who pays what, and write it

To avoid misunderstandings, both the buyer and seller should agree beforehand on who will cover the transfer fees, inspection charges, and insurance costs. It’s best to write this down in a signed agreement.

• Double-check all documents and IDs

Always verify the identity of the person you’re dealing with and check that their Emirates ID, driving license, and vehicle documents are genuine and up-to-date. This helps you avoid scams or fake transactions.

Conclusion

We investigated the cost of vehicle ownership transfer in Dubai. Transferring vehicle ownership in Dubai is not stressful if you’re prepared. By understanding the full scope of costs, including hidden fees like inspection and insurance, you’ll avoid last-minute surprises. Most importantly, always verify rates with the RTA’s official platforms, as prices may change year to year. So, whether you’re upgrading your ride or just passing it along to someone else, knowing how much you’ll pay for vehicle ownership transfer in Dubai puts you in control of the process.

 FAQs

1. How much does it cost to transfer vehicle ownership in Dubai?

It starts at AED 350 for light vehicles. Costs vary by vehicle type and can go up to AED 1,000.

2. Who pays the vehicle ownership transfer fee?

Usually, the buyer pays, but both parties can agree otherwise. Always put it in writing.

3. Are there hidden or extra costs involved?

Yes, expect charges for inspection, insurance, number plates, and clearing fines or loans.

4. Can I transfer ownership online in Dubai?

Yes, use the RTA website or Dubai Drive app with UAE Pass, valid documents, and insurance.

5. What documents are needed for the transfer?

You’ll need an Emirates ID, a driving license, insurance, and the vehicle registration card (Mulkiya).