Handling Tax and Insurance When Selling Your Car
Sorting Out Tax and Insurance After a Sale
Selling a car involves more than just handing over the keys. You need to make sure your tax and insurance are cancelled correctly to avoid fines and secure any refunds you are owed.
Cancelling Your Road Tax (VED)
Road tax is no longer transferable between owners. When you sell your car, you must notify the DVLA.
- How to notify: You can do this online using the 11-digit reference number on your V5C logbook, or by posting the relevant section of the V5C.
- Refunds: Once the DVLA is notified, they will automatically send a cheque for any full remaining months of tax to the registered keeper's address.
Managing Your Car Insurance
Never cancel your insurance before the car is officially sold and driven away. If the car is parked on a public road, it must be insured.
- Transferring: If you're buying a new car, you can usually transfer your existing policy to the new vehicle for a small admin fee.
- Cancelling: If you're not replacing the car, call your insurer to cancel. You may receive a pro-rata refund, minus any cancellation fees.
We Make It Easy
When you sell to us, we help you complete the DVLA online notification right on your driveway, so your tax refund is triggered immediately.
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