Tax and Insurance: What to Do After Selling Your Car

Essential Post-Sale Tasks

Selling your car isn't complete until you've handled the administrative tasks. Follow these steps to ensure everything is properly finalized.

Notify the DVLA

• Complete the V5C/2 section and send it to DVLA
• Give the V5C/3 section to the buyer
• You can also notify DVLA online at gov.uk/sold-bought-vehicle
• Keep the green V5C/2 section for your records

Cancel Your Car Insurance

• Tell them the exact date and time you sold the car
• You may be entitled to a refund for unused months
• Get written confirmation of cancellation
• Ask for a no-claims bonus certificate

Claim Back Vehicle Tax

• DVLA automatically cancels the tax when notified
• You'll receive a refund for any full months remaining
• The refund is usually sent as a check within 4-6 weeks

Keep Records

• Keep the V5C/2 section
• Save any sale agreement or receipt
• Store correspondence with the buyer
• Keep these for at least 6 months after the sale