How to transfer car ownership: a comprehensive guide

Transferring ownership of your car is a straightforward process that doesn’t take much time. However, there are a few important steps you need to follow to successfully transfer ownership to the new keeper. In this article, we’ll walk you through the car ownership transfer process to make sure everything goes smoothly.

Car ownership transfer: where to start?

Whether you’re selling your car to someone or transferring it to a family member, you need to inform the Driver and Vehicle Licensing Agency (DVLA) about the change in ownership. The quickest and easiest way to do this is by filling out a form on their website. However, you can also inform the DVLA by post.

To transfer ownership, you need to have the V5C log book – a vehicle registration document issued by the DVLA when a car is registered.

Transferring car ownership online

1. Ensure you have the VC5 log book and the new owner’s details.
2. Visit the "Tell DVLA you've sold, transferred, or bought a vehicle" section on the gov.uk website.
3. Follow the instructions to enter the necessary details, including the new owner’s name and address.
4. After submitting the online form, you’ll receive an email confirmation.
5. The DVLA will update its car records, and the new owner should receive a new V5C in their name in a few days.

Transferring car ownership via post

If you prefer, you can notify the DVLA about the car ownership transfer by post. This involves filling out the relevant sections of the V5C document. Here’s what you need to do:

1. Ensure you have all the new owner’s details.
2. Complete all the required fields on the declaration and sign it.
3. Ask the new owner to sign the declaration.
4. Send the completed V5C to the DVLA at this address: DVLA, Swansea, SA99 1BA.
5. The buyer keeps the green "new keeper" slip as temporary proof of ownership until they receive the new V5C, which usually takes between 1 and 4 weeks.

Transferring car ownership to a dealer

1. Go to the "Sold your vehicle to a motor trader, insurer or dismantler" section on the gov.uk website.
2. Enter your vehicle details and the dealer information.
3. Submit the form.
4. You’ll receive an email confirmation, and the DVLA will update their records promptly.

What happens if I fail to transfer car ownership on time?

We advise you not to wait and transfer car ownership immediately as soon as the deal is completed. If you delay, you could face penalties and still be liable for taxes, as you’ll remain registered as the vehicle’s keeper.

Drivers failing to inform the DVLA about selling their vehicle may receive a fine of up to £1,000.

When are you obligated to inform the DVLA?

Owning a car comes with several legal reponsibilities, including keeping the DVLA updated. You must inform them if you change your vehicle's engine type, colour, or ownership details.

You need to notify the DVLA about ownership transfer in the following situations:

• buying a vehicle
• selling a car
• changing your name or address
• the owner passes away
• scrapping a vehicle
• exporting your car to another country
• giving a vehicle to a family member

Essentially, any time there’s a change in vehicle ownership, status, or driver information, you must inform the DVLA and get an updated V5C log book.

Owner and keeper: what’s the difference?

While it might seem straightforward it’s important to understand the difference between the owner and the keeper when selling a vehicle.

In most cases, the owner and the keeper are the same person. However, they can be different. For example, ifa vehicle is owned by someone else (like a family member) or a company that lets employees use its vehicles.

If a car is leased, the legal owner is the finance company, while the person leasing it is the keeper.

The keeper is the primary user of the car and is responsible for insuring it, paying road tax, and handling any fines. The keeper’s name is also listed on the V5C log book and other relevant documents.

You can check whether you’re listed as the keeper or owner of a vehicle on the DVLA website, along with details of any cars registered to you.

Who should complete the V5C log book?

The current keeper listed on the V5C log book – usually the seller – must complete and send it to the DVLA to officially transfer ownership.

As the owner, it's essential to update the V5C with the new owner's details and send it off promptly. This ensures you're no longer on the hook for a vehicle that’s no longer legally yours.

Reveal a car’s history and the number of owners before the ownership transfer

Before shaking hands with the seller, it’s wise to check a car’s history on carVertical to see how many owners it’s had. A car with many previous owners might have hidden issues, which is why it’s been sold frequently.

Not every seller is upfront, and used vehicles often have hidden defects from past damage. A history report can reveal mileage discrepancies, previous damage, theft records, and more.

After buying a car and transferring its ownership, proving it’s in poor condition and getting your money back can be difficult. Legal disputes can drag on for months, causing stress and consuming time. To avoid this, always use a history report to reduce the risk of getting a lemon and have the vehicle checked at an authorised service centre.