How to Transfer Car Ownership in the UK

When a car changes hands in the UK, the DVLA must be told. The change of registered keeper takes around 10 minutes online and is free of charge. This guide covers private sales, sales to motor traders, gifts to family and the common mistakes that catch people out.

What the V5C tells you (and what it doesn't)

The V5C identifies the registered keeper, the person legally responsible for the car. It is not proof of legal ownership. The legal owner is whoever has paid for the vehicle outright. On a financed car, the finance company is the owner until the agreement is settled.

Both parties to a sale should keep their own proof of payment alongside the V5C transfer. See our V5C logbook guide.

Selling privately: step by step

1. Agree the sale and exchange payment and keys
2. Complete the new-keeper section of the V5C (Section 6 on new-style red-pink V5C, Section 10 on old-style blue-green)
3. Tear off the green slip (V5C/2) and give it to the buyer. They keep this as interim proof until the new V5C arrives
4. Notify DVLA online at gov.uk/sold-bought-vehicle - fastest method, around 5 minutes
5. Or post the V5C to DVLA, Swansea, SA99 1BA - slower, 4 to 6 weeks
6. You'll receive confirmation by email (online) or letter (post)
7. Any unused tax is automatically refunded to you

Selling to a motor trader, dealer or scrap yard

The trader handles the paperwork:

1. They complete Section 9 (new-style) or Section 9/10 (old-style)
2. They notify the DVLA
3. You keep Section 4 (new-style) or the relevant tear-off slip
4. You receive confirmation and any tax refund

Always get a receipt from the trader confirming the sale, the date and the vehicle details.

Gifting a car to family

Same process as a private sale, but no money changes hands:

1. Treat the recipient as the buyer
2. Complete the new-keeper section
3. Give them the green slip
4. Notify DVLA online or by post

The recipient must tax and insure the vehicle before driving it.

What the buyer needs to do

1. Use the green V5C/2 slip to tax the vehicle immediately at gov.uk/vehicle-tax or by phone (0300 123 4321)
2. Arrange insurance before driving - many drivers organise this for the moment they take possession
3. Wait for the new V5C to arrive - typically 4 to 6 weeks
4. Check the new V5C when it arrives: name, address, vehicle details all correct

If the new V5C doesn't arrive within 6 weeks, contact DVLA on 0300 790 6802.

What about outstanding tax?

Vehicle tax doesn't transfer to the new owner. As soon as the DVLA is notified of the sale:

• The seller receives a refund for full unused months
• The new owner must tax the vehicle themselves before driving
• Direct Debits are automatically cancelled

What about insurance?

Insurance is tied to a person and a vehicle. The seller's insurance ends on the sale (or earlier if they cancel). The new owner must take out their own cover before driving.

Don't rely on a "driving other cars" extension on a separate policy. Most modern policies only cover this for genuine emergencies, not routine driving.

Private number plates

If you have a private/cherished number plate and want to keep it:

1. Transfer it off the car BEFORE selling - apply for a retention certificate (V317 form, £80 fee) at gov.uk/keep-registration-number
2. The car returns to its original DVLA-issued registration
3. You can later assign the cherished plate to another vehicle in your name

Doing this after the sale is much harder.

Common mistakes

• Forgetting to notify DVLA - you remain legally responsible for parking tickets, speed cameras and tax demands until you do
• Letting the buyer "deal with it later" - always notify DVLA the same day as the sale
• Not handing over the green slip - the buyer cannot tax the vehicle without it
• Driving home an uninsured purchase - even a five-minute drive uninsured can mean a fixed penalty

What does it cost?

Nothing. Transferring ownership with the DVLA is free.

Keep your vehicle paperwork organised

MotifyMe lets you store digital copies of your V5C, insurance, MOT and service history in one place, and sends reminders before everything expires.