Once you’ve sold your car, it’s important to transfer ownership as soon as possible. Informing the Driver and Vehicle Licensing Agency (DVLA) ensures you’re no longer legally responsible for the vehicle and protects you from future fines, penalties or tax issues.
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Here’s how to change the ownership of a car correctly.
Who Can Transfer Ownership of a Car?
Only the vehicle’s registered keeper can notify the DVLA that ownership has changed.
Although the registered keeper and the owner are often the same person, they aren’t always identical.
Owner vs Registered Keeper – What’s the Difference?
Many people assume they’re the same thing, but legally they’re different.
Vehicle Owner
The owner is the person or organisation that legally owns the vehicle. They may have:
- Purchased the car outright
- Financed the vehicle
- Own the vehicle as a business asset
Registered Keeper
The registered keeper is the person responsible for the vehicle’s day-to-day use.
Their name appears on the V5C registration certificate (logbook) and they are responsible for:
- Vehicle tax
- MOT
- Keeping DVLA records up to date
- Receiving parking or speeding notices
The registered keeper isn’t necessarily the legal owner.
The V5C Logbook
The V5C registration certificate (often called the logbook) records the vehicle’s registered keeper.
When a car changes hands, the DVLA must be notified so they can issue a new V5C to the new keeper.
This is one of the most important pieces of paperwork when selling a vehicle.
How to Transfer Car Ownership Online
The quickest way to notify the DVLA is online.
You’ll need:
- The vehicle’s V5C registration certificate
- The 11-digit reference number from the V5C
- The new keeper’s details
Once submitted:
- The DVLA updates its records immediately.
- Both parties usually receive email confirmation (if an email address is provided).
- The new keeper normally receives their V5C within a few working days.
Many sellers choose the online service because it’s faster than posting paperwork.
How to Transfer Ownership by Post
If you prefer to complete the process by post, you’ll need to:
- Complete the relevant section of the V5C with the new keeper’s details.
- Give the green “new keeper” slip to the buyer.
- Send the remaining V5C to the DVLA.
The DVLA will then issue a new V5C to the new registered keeper.
Selling to a Dealer or Scrap Yard
The process is slightly different when selling to:
- A motor trader
- A dealership
- A vehicle dismantler
- An authorised scrapyard
Instead of completing the section used for private sales, you’ll complete the section relating to motor traders or dismantlers before notifying the DVLA.
Unlike private sales, vehicles sold to dealers don’t increase the recorded number of previous owners until they’re sold on to a new keeper.
What Happens to Vehicle Tax?
Vehicle tax does not transfer with the vehicle.
Once the DVLA records the change of keeper:
- Any remaining vehicle tax is automatically refunded to the previous keeper.
- The new keeper must tax the vehicle before driving it.
The new keeper can do this online, by phone or at a participating Post Office.
What Happens if You Don’t Tell the DVLA?
It’s the seller’s legal responsibility to notify the DVLA.
Failing to do so could mean:
- You remain responsible for the vehicle.
- You continue receiving speeding notices or parking fines.
- You could receive vehicle tax penalties.
- You may face a fine for failing to update DVLA records.
Completing the transfer promptly protects both you and the buyer.
If you’re unsure which documents you’ll need, we’ve put together a list for you on What Documents Do You Need to Sell Your Car?, which explains everything you should prepare before completing a sale.
Before You Sell Your Car
Before handing over the keys, make sure you have:
- Your V5C logbook
- Service history
- MOT certificate (if applicable)
- Spare keys
- Owner’s manuals
Having all your paperwork ready helps the sale progress much more smoothly.
You may also find it handy to know How You Can Sell Your Car Fast? if you’re looking for the quickest and easiest way to sell your vehicle.
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