Understanding Documentation!

Understanding Documentation

What documents will I need when selling my car? 

So, you’ve made the big decision to sell your car!

It’s important to get all the necessary documentation together before you start the selling process to avoid any unnecessary delays. In this edition of ‘The Carfisher’, we’re going to explain what paperwork you need to sell your car, and why each document is important.

I’ll bullet point them now and expand further on them…

1) V5C Logbook

2) Service History

3) MOT Certificates

4) Repair and Parts Receipts

5) Car Warranty

6) Original Photo ID (Passport of Driver’s License)

7) Your Bank Details (So you can receive funds)

8) Proof of Address (For example, a Utility Bill)

9) Finance Settlement letter (If Applicable)

10) Letter of Authority (If selling on behalf of someone else)

Here we have it! 10 things to think about and get together, before you even think about who to sell the car to, the price you want to sell your car for and before advertising your car.

With extensive years in the motor trade, this is something I have experience with daily, but am asked ALL THE TIME when dealing with customers selling their car. It can be a daunting and even intimidating experience, so hopefully this will help you understand what documentation you need and why they are so important.

Let’s start and break it down in more detail… 

V5C Logbook 

The V5C is not proof of ownership of the vehicle. It is, however, a document that shows who is legally responsible for registering and taxing the vehicle. Someone buying your vehicle will need this document to enable them to become the registered keeper of the vehicle and to tax the vehicle after they’ve purchased it from you. Once the registered keeper has transferred and DVLA are informed, you will then receive a refund of any tax that you may have paid for and not used.

Service History 

A full service history proves to buyers that the car has been well maintained throughout it’s life. As such, having documents that prove your full service history may make your car more desirable to potential buyers and may increase the value of your car. It can even help buyers confirm that the mileage you’re quoting is legitimate.

Manufacturers vary as to how they provide service history. Some stamp your service book, some provide paper invoices, some services are online or recorded on the vehicle’s onboard computer. Find out how your services have been recorded and make sure that when your potential buyer arrives you can produce ‘proof’ of the servicing.  

MOT Certificates 

Every year when your car goes in for an MOT you will receive a certificate, and often these get misplaced. Not to worry! MOT history of vehicles can be found online. Just type ‘Check the MOT history of a vehicle’ into Google, click on the GOV.UK link and type your registration in. This will provide information on all the MOT’s your car has had since it was registered. If you have the certificate, great! If not then I would suggest you go online and make sure the MOT is still valid, when it expires, and check if there were any advisories on the last MOT. This is also about having the knowledge about the cars MOT so when a potential buyer comes to buy your car there are no surprises!

Repair and Parts Receipts 

Although these are not essential documents to have when selling your car, and will not stop the sale going through, they can be EXTREMELY important in some circumstances. If you’ve had a recent MOT and it listed advisories, this will still show on your MOT history. If you had the advisories rectified, then keeping the paperwork to show this is great news! It shows the buyer that any potential problems from the MOT aren’t there anymore as you’ve had the work done and have the ‘proof’ they’ve been done. Also, if your car has had any major work completed at a relatively large cost, then keep the paperwork to show you have completed this work. Cars at a certain age or mileage develop common, and expensive problems such as needing timing belt replacements etc, so if you’ve had work like this done then keep your receipts as it shows the buyer that any potential common problem they may have after buying your car is less likely to happen as you’ve had the work done. Trust me, they will be more likely to feel confident in buying your car with these receipts.

Car Warranty 

If you’ve purchased an extended warranty that is also transferrable, this is great to have as the new owner will buy the car with piece of mind knowing they are covered if anything was to occur after they’ve purchased the vehicle. Have the certificate ready to show them. It will fill them with confidence when handing over the money for your car.

Original Photo ID, Your bank details and Proof of Address 

I will cover these together as they are quite self-explanatory. As we stated when talking about the V5C, that document is not proof of ownership of the vehicle. Photo ID proves who you are, it will match the name and address on the V5C, your proof of address in the form of a Utility bill proves who you are and where you live, which will also match the name and address on the V5C. Having both of these documents, along with your V5C will give piece of mind to the buyer of your car that you are legitimate and you are selling your own car. As for bank details…. You want them to pay you, don’t you?   

Finance Settlement Letter

If your vehicle has outstanding finance, this is no problem! Call or email your finance company and request them to send you a ‘Finance Settlement Letter’. This letter can be sent via email and will include all the essential information the buyer needs when settling your finance in full. It will include information such as your name and address, your agreement number, the total amount to settle the finance and most importantly will have the finance companies bank details for the buyer to settle the finance. Your settlement letter will have a valid from and valid until date so make such the letter you have at the point of selling is still valid. If it’s not, don’t worry, simply request a new one.

Letter of Authority 

This only applies if you are selling a vehicle on behalf of someone else, maybe a friend or family member. This could also apply if someone has recently passed away and you are selling their car as part of their Will or Estate. We will talk about this in a further post.  If you are currently in this position, then don’t hesitate to reply to this email and I will happily explain exactly what you will need…

So, there we have it! Everything you need to know about understanding the documentation you need when selling your car.  

If you think I’ve missed something or you would like and advice about documentation or anything else related to selling your car, please don’t hesitate to reply to this email with any questions you have, and I will be happy to help. I will always reply within 12 hours, but usually within the hour!