Documents, Paperwork & Payment to Accept When Selling a Car
Staying safe and legal
Once you make your sale, arrange payment terms. Only accept a BACS transfer into your bank account. Do not release the car to the new owner until the money is actually in your account.
A BACS transfer really is the best way to secure a genuine payment. Should the buyer insist on another form of payment I’d view this as a red flag. BACS is a simple, safe and secure method. You may even want to mention your accepted payment method when on your initial phone call with the prospect or within the first few minutes of them arriving to view your car.
Acceptable payment is bank transfer only.
Selling a car privately – receipt
Always produce a receipt that includes:
- Name address and phone number of existing and new owners
- Vehicle make and model
- Vehicle registration number
- Date of transaction
- Transaction type (BACS etc)
- Signature from both parties
Also ensure there is a copy of the receipt for yourself and the new owner.
A receipt is not a legal binding contract but is best practice and a part of every car I sell.
What to do with documentation when you sell your car
Ensure the log book (V5C) is filled out correctly by including:
- New owner’s details (Section 6)
- Signature declaration (Section 8) from both parties.
- Small green slip (“new keeper’s supplement” or Section 10 V5C2) that also contains the new keepers name, address and date of sale/transfer
Important – As the registered keeper You must retain the rest of the logbook and send it to DVLA, Swansea, SA99 1BA. The new keep keeps the green slip, like the one below.
Do NOT allow the new owner to drive away with the log book else you will most likely get a £100 fine from the DVLA because you didn’t personally notify them. Also, should your old car receive a parking or speeding fine you will be liable unless you can prove you no longer owned the vehicle.
I hope this post helps you secure your sale for the price you really want.