Consider using a Vehicle bill of sale agreement as a checklist before the sale takes place.
Prepare the paperwork
The seller should prepare the paperwork, including the V5C registration document (logbook), manual or handbook, MOT certificate and service log and warranty (if there is one). The seller may have to apply for a new logbook if they have changed their name or address, or made changes to their vehicle.
Inspect the vehicle
The buyer should carefully inspect the vehicle and add any problems, such as flaws or damage, to the agreement so that it is ‘sold as seen’. Selling a vehicle ‘as seen’ (or on an ‘as is basis’) helps protect the seller from liability in case the buyer later has a problem with the vehicle.
Potential buyers can ask to see the seller’s logbook to check if the details match the vehicle they’re inspecting. To avoid someone obtaining a fraudulent copy of the logbook (putting the vehicle at risk of being stolen), sellers should take care not to share:
the logbook document reference number
pictures or copies of the logbook
Enter into an agreement
Both parties should agree on the price and fill in the necessary details (date, price, registration, make and model, names and addresses) on the Vehicle bill of sale.
Make two copies of the completed agreement (one for the seller and one for the buyer) and sign both.
The seller must inform the Driver and Vehicle Licensing Agency (DVLA) that they have sold their car. How this is done depends on where the buyer is registering the vehicle.
If the buyer is registering the vehicle in the UK, the seller should give the buyer the logbook’s green ‘new keeper’ slip. The seller should tell DVLA that they have sold the vehicle, providing the full name and address of the buyer. This can be done online or by completing their logbook and posting it to the DVLA.
If the buyer is registering the vehicle abroad, the seller should complete the logbook’s ‘permanent export’ section and post it to DVLA. They should include the buyer’s full name and address. The buyer should give the rest of the logbook to the buyer so that they can register the vehicle abroad.
When the seller tells DVLA that the vehicle has been sold, the vehicle tax will be cancelled and the seller will automatically get a refund.
The seller must hand over to the buyer the vehicle, handbook, service log and MOT certificate (if it has them).
Insurance arrangements for the vehicle must be changed to reflect the change in ownership.