Whether you’ve just bought a new car, or want to sell your old one, you must make sure the ownership has been transferred. The V5C registration certificate, also known as the log book, is one of the most important documents for owners.
Ownership needs to be transferred. You can face serious consequences for not submitting the correct documents for a DVLA change of ownership on time. And if you have an AXA car insurance policy, you can update your car details online.
Here’s everything you need to know about transferring vehicle ownership:
- Car owner or keeper?
- How to change car ownership as a seller
- How to change car ownership as a buyer
- Transferring ownership to a family member
- Transferring ownership to a dealer or scrap yard
- What if I've lost the V5C?
- Transferring road tax
- Failure to transfer car ownership
Car owner or keeper?
Whilst the owner and the keeper of a vehicle can be the same person, this may not always be the case. One of the most common myths about car ownership is that the registered keeper of the car is automatically the owner.
The DVLA makes a clear distinction between the owner and keeper of a vehicle:
- Keeper: A registered keeper of a car is the primary driver who has their details on the V5C documents and will receive parking tickets and fines. The keeper is also responsible for making sure the vehicle is taxed.
- Owner: The person who purchased the car or received it as a gift. For example, a company car is owned by the company.
It’s the original owner’s responsibility to transfer the car’s ownership to the new keeper by filling out a V5C form to let the DVLA know about the change of ownership.
However, even after the V5C form has been transferred to the keeper, the owner may be another individual or group.
For example, if a company owns a car and gives it to a different employee each year, the company remains the car’s owner, and the keeper is changed via the V5C each year.
How to change car ownership as a seller
If you’re looking to sell your car, you'll need your V5C document. On the document, find the section titled ‘V5C/2’ (also known as the green slip). This is a new keeper section which you'll need to fill out and tear off to hand over to the new keeper of the vehicle. If you have an older style V5C document, it's section 6 instead.
You'll then need to notify the DVLA of the change in ownership online by filling out a form on their website. Alternatively, you can send the V5C/2 form to the DVLA by post.
You'll get a confirmation email and a letter following this. Once this is done, you should dispose of your old V5C, as an updated one will be issued to the new keeper of the car.
How to change car ownership as a buyer
When buying a car, the seller will update the V5C information with your details. You need to give the seller your email address, and you'll get a confirmation from the DVLA when the car owner has been changed online. You should receive your V5C document by post within five working days.
Transferring ownership to a family members
Passing your car on to a loved one isn’t uncommon, whether it’s for cost-effective, sentimental, or convenient reasons.
You'll still need to transfer the car ownership to the person who will be the day-to-day driver of the car. Transferring ownership of a car to a family member is the same process you'd follow when selling your car. Make sure you fill out the DVLA form to let them know about the change of keeper of the car.
Transferring ownership to a dealer or scrap yard
Even when you're planning to hand over your car to a dealer or scrap yard, you still need to transfer the car’s ownership to whoever the new keeper will be. For this, you'll need to fill in section 9 on the V5C and send it to the DVLA by post. Keep the rest of the V5C document to pass to the dealer or scrap dealer.
What if I've lost the V5C?
If you’ve lost the V5C, you’ll need to let the DVLA know as soon as possible, so they can replace it. The same applies if the document has been stolen.
It usually costs £25 to replace the V5C.
Transferring road tax
Along with updating the ownership of the car, you must also update road tax. This isn’t automatically done when you take ownership of the vehicle.
Once you’ve been registered as the keeper, you need to transfer car tax through the government portal. You can only transfer vehicle tax once you’ve got your new log book reference number which can be found on:
- a recent reminder (V11) or ‘last chance’ warning letter from DVLA
- your vehicle log book (V5C) - must be in your name
- the green ‘new keeper’ slip from a log book if you’ve just bought it.
Failure to transfer car ownership
You can be held accountable if your vehicle is involved in an accident or fined if you're its registered keeper.
It's a criminal offence to not tell the DVLA of a change of registered keeper. Failure to notify the DVLA of a change of keeper for a vehicle can come with a fine of up to £1,000.
As the owner of a vehicle you're selling, passing on or handing over to scrap, you must ensure you have let the DVLA know the keeper has changed.
