Selling your car & the DVLA
If you have sold a car as a registered vehicle trader, you need to alert HMRC. You will need a couple of things in order to do this. Firstly, your V5C certificate where your 11-digit reference number is. Inside the log book is all the information about the vehicle such as make, model and colour. Please re-order any misplaced log books, this is easily done online. This is because the sale of a vehicle requires a signature from both the seller and the buyer, as well as a date and so cannot be completed online. A buyer of the vehicle will want to see its log book before the sale is complete.
Secondly, permission from the buyer if you are acting on their behalf. You can begin the process of selling a vehicle by visiting the DVLA website. If the vehicle has pre-paid vehicle tax, the DVLA will refund the previous owner. As a result, the new owner of the vehicle will need to tax it of his own accord, or issue it with a SORN (statutory Off Road Notification). It is important to note that transferring tax does not occur automatically.
Selling to a dealer and selling to a private individual have different procedures. Selling to a dealer requires tearing off the yellow section (V5C3) of the V5C logbook. This will need to be signed and dated by both you and the dealer. Selling to a private individual requires completion of section 6 of the V5C log book as well signing the declaration found in section 8. Send the V5C log book back to the address found on the DVLA website. If you are a dealer selling a vehicle, you can fill out your trader details on the website, as well as requesting for email confirmation of the sale.
It is important that the DVLA know of you selling a vehicle, so they can issue you a tax refund. You will receive an automatic refund, and the DVLA will cancel any direct debits you may have set up with them, that were once paying the vehicle tax. The DVLA will issue a refund for vehicle tax if you have:
- Sold or transferred a vehicle
- Scrapped a vehicle
- Exported a vehicle
- Taken a vehicle off the road and made a SORN
- Got a vehicle that is exempt from paying tax
The DVLA will issue a refund within 4-6 weeks.
The service is available from Monday- Saturday and is open from 8am-6 pm.
Telling the DVLA
Notifying the DVLA about selling your vehicle is easy and manageable online. Simply visit the DVLA and fill out an online questionnaire. Telling the DVLA whether you have bought a vehicle into the trade or are a motor trader, is required. You can then use the service to make a SORN or tax the vehicle. You can’t use the DVLA vehicle service for any of the following things:
- Change tax class of a vehicle
- Assigning or keeping a registration number to a different vehicle
- To record joint keepers
it is worth remembering that not everybody is out to complete an honest and hassle-free sale when it comes to vehicle buying. Thieves could pose as potential buyers and so never let one do a test drive alone. If you are accepting a cheque as a form of payment, make sure the cheque has cleared and the payment is genuine before you hand over the keys of the vehicle. Although the sale is recorded in the log book, it is worth keeping a separate note of the buyer’s name and address. Enter the vehicle’s mileage into the box provided to prevent miles being fraudulently altered by someone else, please be aware that if you do have mileage changed (perhaps due to a faulty odometer) you must declare this before sale of the car.