Private car sale agreement – template
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Private car sale agreement – what you need to know
A written agreement is not required by law for a private car sale, but it is the best evidence of who sold what to whom, for how much and in what condition. It also works as a receipt for the money. Both parties should sign two copies and keep one each.
What to do with the V5C logbook
- Tell the DVLA straight away. The seller should report the sale online on GOV.UK (it is free and instant) or fill in the relevant section of the V5C and post it. Until the DVLA is told, the seller can be held responsible for fines and tax.
- Give the buyer the green slip. The new keeper slip (V5C/2) goes to the buyer; the new logbook will be posted to them.
- Tax does not transfer. The seller gets a refund of any full months of tax left; the buyer must tax the car before driving it. The buyer also needs insurance from the moment of collection.
Private sale: what the law says
When you buy from a private seller, the car must be “as described” and the seller must have the right to sell it, but there is no implied promise that it is of satisfactory quality. That is why private sales are usually “sold as seen” and why it pays to write known faults into the agreement. Buying from a dealer gives you stronger rights under the Consumer Rights Act 2015.
Checks before you buy or sell
- Compare the VIN and registration on the V5C with the car itself, and check the MOT history for free on GOV.UK.
- A vehicle history check shows outstanding finance, theft records and write-off categories.
- For larger sums use a bank transfer and hand over the keys only when the money has cleared. Be wary of “overpayment” scams.
Frequently asked questions
Do I need a written contract to sell a car privately?
No, but it is strongly recommended. A signed agreement with the price, the vehicle details and any known faults protects both seller and buyer if there is a dispute later.
Who tells the DVLA when a car is sold?
The seller (registered keeper) must tell the DVLA. The quickest way is online on GOV.UK; the buyer then receives a new V5C in their name.
Can I return a car bought privately?
Only in limited cases – for example if it does not match the description, the seller had no right to sell it, or the seller lied about it. There is no right to return just because a fault appears later.
Does the agreement need to be witnessed?
No. Signatures of the seller and the buyer are enough.
This template is for general information and is not legal advice. It reflects the law of England and Wales as at October 2026. Check that it fits your situation before signing and take legal advice in unusual cases.