Guides · 5 min read
Notifying the DVLA when you sell a car
Getting DVLA notifications right protects you from fines, tax bills and penalty notices for cars you no longer own. Here's what a trader needs to know.
Why it matters
The registered keeper on record is who the DVLA holds responsible for tax and for offences like speeding or parking. If you don't notify a change correctly, you can receive fines, tax demands or penalty notices for a car that's no longer yours. Clean, dated records are your protection.
When you take a car into stock
A motor trader buying a vehicle to resell does not usually register it in their own name. Instead, the seller notifies the DVLA they've sold it into the motor trade, and you keep your own record of the purchase. Make sure the previous keeper completes the "sold to the trade" notification so they come off the record.
When you sell a car on
When you sell to a private buyer, the sale must be notified to the DVLA so the new keeper is registered and you're removed as the responsible party. Give the buyer the right part of the V5C and make sure the change of keeper is submitted promptly — online is fastest and gives you confirmation.
Trade plates and untaxed stock
Stock you're holding to resell can be kept off the road (a SORN may apply) and moved on trade plates for permitted business purposes rather than taxing each car. If a car is driven or kept on a public road, it must be taxed and insured.
Keep evidence of every change
- Record the date you bought each car and from whom.
- Record the date you sold it and to whom, and that you notified the DVLA.
- Keep V5C references and confirmations.
Those dates also feed your VAT margin scheme stock book, so keeping one accurate record per vehicle does double duty — see the VAT margin scheme guide.
This guide is general information, not legal advice. DVLA procedures change — always follow current GOV.UK guidance for buying, selling and notifying as a motor trader.
Keep clean records on every car
A tidy record per vehicle — purchase, sale and the dates that matter — makes DVLA and HMRC admin painless. Start a free 14-day trial.