The Comprehensive Guide to Selling your Car
Chapter 6: I've Sold It!
Congrats, the buyer has made the offer that you are happy with, and your ready to pass them you keys as they part with their cash.
In an ideal world the buyer will pay cash during normal office hours, which you can pay into the bank immediately after checking for forgeries. Even better would be to make this exchange inside the bank.
Many people have internet access to their accounts, and funds can be transferred this way. However do not hand over the vehicle till the funds have cleared, which may take a few days.
Cheques are no guarantee of payment, even a banker’s draft, as they can be forged. Personal cheques can also be cancelled or issued without enough funds in their accounts. Again do not release the car until the funds have cleared.
The buyer will ask for a receipt for the payment. It should include the following information
- Name and address of both parties. Ask for the buyers Id.
- Write the make, model, registration and mileage of the car on the receipt.
- The sale price and how it was paid.
- Yours and the buyers signature.
Common Scams
There are some scams that sellers should watch out for, especially in the online world.
Certified Check Scams
A buyer indicates that they want to buy the car and will pay with a cashier’s cheque. At the last minute, the buyer has an excuse why a cheque for a larger amount needs to be made, and the seller should send him the difference. The cheque is inevitable discovered to be a fake.
Bogus Escrow Services
An escrow service will collect and verify payment from a buyer, and the money is held by the service until all parties at satisfied by the sale. A bogus buyer may insist on using an escrow service that is actually a phoney website.
The best way to avoid most scams is not to release the car until all funds have been cleared.
The Legal Bits
If you sell your vehicle privately or through a motor trader, you should notify the Driver Vehicle Licensing Agency (DVLA) about the sale using the appropriate section of the registration document or certificate.
It is important to tell DVLA as soon as you sell your vehicle or you will continue to be responsible for paying the vehicle tax or penalties for the non-payment of it. You may also receive mail relating to motoring offences committed in the vehicle. When DVLA have been informed, they will send you a letter of receipt confirming that you are no longer responsible for the vehicle.
Selling Privately
When selling the vehicle, you should always keep a separate note of the buyer's name and address. You should tell the DVLA using the appropriate section of the registration document or certificate.
If you do not have a V5/V5C you can still inform DVLA that you no longer have the vehicle. In order to do this you must write to DVLA, Swansea, SA99 1AR quoting the vehicle registration mark, make and model, exact date of sale and name and address of the new keeper. However, you should note that DVLA records will not be complete until the new keeper tells DVLA in writing. Until they do, the police may need to contact you if they have to make enquiries about the vehicle
Selling to a Trader
If you transfer your vehicle to a motor trader, and you are in possession of a registration certificate (V5C) you should tell the DVLA of the sale using the V5C/3 section (yellow) and pass the rest to the trader.
If you are in possession of the three part registration document (V5) you should send the V5/3 section (red) to DVLA and pass the rest to the trader.
If you are in possession of the two part registration document you should send the disposal slip V5/1 to DVLA and pass the rest to the trader.
Vehicle Mileage
Entering the vehicle's mileage in the box provided will help in the fight against vehicle 'clocking'. This is where the vehicle's odometer (speedometer) is turned back to fraudulently reduce the number of miles that the vehicle is recorded as having travelled.