How to transfer car ownership: a comprehensive guide

Transferring car ownership in the UK is usually quick and straightforward – but it still comes with a few important legal and administrative steps.

In this guide, we’ll walk you through the ownership transfer process step by step, so you can hand over the car with confidence and avoid any nasty surprises.

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.

How to transfer car ownership online

1. 1.Ensure you have the V5C log book (or the 11-digit reference number) and the new owner’s name and address.

2. 2.Go to the "Tell DVLA you’ve sold, transferred or bought a vehicle" service on the gov.uk website.

3. 3.Enter the required details, including the new keeper’s information and the V5C reference number.

4. 4.Submit the form and you’ll receive email confirmation from DVLA.

5. 5.The DVLA updates its records and the new owner should receive a new V5C in their name in the post within a few days..

How to transfer 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. 1.Ensure you have all the new owner’s details. This includes their full name and current address.

2. 2.Fill in the relevant sections of the V5C. On the V5C, complete the “new keeper” section (Section 6) with the buyer’s details.

3. 3.Both you and the new owner sign the declaration. Make sure you follow the instructions on the form and sign where required.

4. 4.Send the completed V5C to the DVLA at this address: DVLA, Swansea, SA99 1BA.

5. 5.The buyer should keep the detachable green slip (V5C/2) as temporary proof of ownership until the new V5C arrives, which usually takes between 1 and 4 weeks.

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.

In practice, DVLA enforcement usually starts with an Out-of-Court Settlement (OCS) penalty – currently £55 (reduced to £35 if paid promptly). If you don’t settle that and the case goes to court, the maximum fine can be 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, if a 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 can sometimes be a red flag, as frequent changes in ownership may point to ongoing issues or dissatisfaction with the vehicle.

A vehicle history report can also uncover problems a seller might not mention, such as mileage discrepancies, past accident damage, theft records, or other red flags. These details help you build a clearer picture of what you’re actually buying, not just what you’re being told.

Once you’ve bought the car and transferred ownership, proving it was in poor condition and trying to get your money back can be difficult and time-consuming. To reduce the risk of making a bad purchase, check the history report in advance and, if possible, have the car inspected by an authorised service centre before you commit.