If you’re driving a company car and wondering whether you can sell it, the answer depends on who legally owns the vehicle.
In most cases, a company car belongs to the business or finance company rather than the individual driving it. Before attempting to sell it, it’s important to understand your legal responsibilities, any outstanding finance and the potential tax implications.
Here’s everything you need to know.
For more guidance on selling any vehicle, visit our car selling guidance hub.
Can you sell a company car?
Yes—but only if you have the legal authority to do so.
If the vehicle is owned by a business, you’ll normally need permission from the company before arranging a sale.
If you’re an employee rather than the business owner, you cannot sell the vehicle unless you’ve been given written authorisation.
Before selling, check:
- Who legally owns the vehicle.
- Whether any finance remains outstanding.
- Whether the business has agreed to the sale.
- Who will receive the proceeds from the sale.
How do you sell a company car?
The selling process is similar to selling any other vehicle, but there are a few additional checks to make first.
Before advertising the vehicle:
- Confirm ownership.
- Obtain written authority if required.
- Check for outstanding finance.
- Gather the service history and documentation.
- Make sure the V5C registration document is available.
Once everything is in place, you can prepare the vehicle for sale by cleaning it thoroughly, fixing minor cosmetic issues and obtaining an accurate valuation.
Can you sell a company car with outstanding finance?
In many cases, no.
If the vehicle is still subject to a finance agreement, the finance company usually remains the legal owner until the agreement has been settled.
If finance is outstanding, speak to the finance provider before arranging a sale.
If you’re wondering whether you Can Sell Your Car With Outstanding Finance?, we’ve looked into this for you anc explained everything so you know your options in more detail.
What are the tax implications of selling a company car?
Selling a company vehicle may have tax consequences depending on how the business is structured.
Potential taxes may include:
- Corporation Tax
- Capital Gains Tax (in some situations)
- VAT (if applicable)
- Benefit-in-Kind considerations for employees
The exact position depends on:
- Who owns the vehicle.
- How it has been used.
- Whether VAT was reclaimed when it was purchased.
- The business’s accounting arrangements.
Because every business is different, it’s sensible to seek advice from an accountant if you’re unsure.
Will selling a company car affect my personal tax?
If you’re simply an employee driving a company vehicle, selling the car won’t usually create a personal tax bill unless you personally benefit from the sale.
However, if the vehicle forms part of your employee benefits package, changes to the arrangement could affect your Benefit-in-Kind position.
Always speak with your employer before making any changes involving a company-owned vehicle.
Can businesses claim the cost of company vehicles?
Businesses may be able to claim tax relief on company vehicles, although the rules depend on factors such as:
- Vehicle emissions
- Purchase method
- Business use
- Whether the vehicle is leased or owned
Electric vehicles often receive different tax treatment compared with petrol or diesel vehicles.
Because the rules change regularly, professional tax advice is recommended before making significant decisions.
Best ways to sell a company vehicle
Depending on your circumstances, several options are available.
Sell privately
Selling privately can often achieve the highest price, although it usually takes more time and requires handling enquiries, viewings and paperwork yourself.
Sell to a dealership
Many dealerships will purchase company vehicles or accept them as part exchange if ownership documentation is in order.
Sell through an online car buying service
Online car buying services offer a fast, convenient alternative and can often complete the process within a matter of days.
Tips for selling a company car
To maximise your vehicle’s value:
- Clean the vehicle thoroughly.
- Fix small cosmetic issues where practical.
- Gather servicing records.
- Ensure the MOT is up to date.
- Obtain an accurate valuation.
- Be transparent about ownership.
- Make sure all paperwork is available.
A well-presented vehicle with a complete history is often easier to sell and may achieve a stronger price.
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Things to check before completing the sale
Before handing over the keys, make sure:
- The business has authorised the sale.
- Outstanding finance has been settled (if required).
- Payment has cleared.
- Ownership documents are completed correctly.
- The DVLA is notified of the change of keeper.
Taking these steps helps protect both the seller and the buyer.
Final thoughts
Selling a company car isn’t necessarily difficult, but it’s important to understand who owns the vehicle and whether you have permission to sell it.
Checking finance, preparing the paperwork and understanding any potential tax implications will help ensure the process goes smoothly and legally.
Ready to sell your car?
Jamjar.com makes selling your car quick, easy and hassle-free. By comparing offers from a trusted network of UK car buyers, you get the best price without the stress of negotiating or haggling.