Buying and selling a vehicle

If you want to buy or sell a vehicle, it's best to follow a process and have a contract in place between the buyer and the seller to create a legal basis for the deal.

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How to buy and sell a vehicle – a checklist

Consider using a Vehicle bill of sale agreement as a checklist before the sale takes place.

Prepare the paperwork, including the V5C registration document (logbook), handbook, MOT certificate and service log and warranty (if there is one).

Inspect the vehicle and add any problems, such as damage, to the agreement so that it is ‘sold as seen’.

Agree the price and fill in the necessary details (date, price, registration, make and model, names and addresses) on the agreement.

Make two copies of the completed agreement (for seller and buyer) and sign both.

The seller must complete the tear-off portion at the bottom of the V5C registration document (logbook) and send it to the DVLA and give the top part of the V5C to the new owner.

The seller must handover to the buyer the car handbook, service log and MOT certificate (if it has one).

If it is not included in the sale, the seller can return the tax disc to the DVLA for a refund.

Insurance arrangements for the vehicle must be changed to reflect the change in ownership.

The advantages of a used vehicle sale agreement

The advantages are that: it creates a straightforward legal contract between the seller and the buyer on a 'sold as seen' basis; it sets out all of the important things to be included and checked to avoid hassle afterwards.

If you are selling the vehicle...

If properly completed, the agreement creates a legally binding full and final settlement for peace of mind - even if the vehicle is damaged.

It provides a reminder to the seller of the important details to check before the sale to avoid problems or price reduction.

It also includes an obligation on the buyer to pay the whole sum within a certain time in cleared funds before the buyer can take ownership of the vehicle.

If you are buying the vehicle...

The agreement provides a list of the important details to check such as the correct paperwork and whether the vehicle has been used a rental car etc.

It means that the seller must tell the buyer about any damage or problems before the sale.

It also includes an obligation to post the New Keeper registration certificate document to the DVLA.

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Create your Agreement for sale of vehicle

Answer a few questions. We'll take care of the rest