What is a Car Sale Receipt?

A Car Sale Receipt records the purchase of a vehicle and shows the transfer of ownership from the seller to the buyer. In short, it's proof of purchase for the transaction.

In the United Kingdom, it's best practice to use a Car Sale Receipt for private sales where someone sells their used vehicle "as is" or "sold as seen." The receipt confirms that the buyer accepted the vehicle in its current condition on the date of sale.

Even though the name refers to cars, you can use our template when selling any motor vehicle, for example, a truck, van, or motorcycle. It's one of several documents for buying and selling property that help record a private transaction.

Car Sale Receipt vs. Bill of Sale

You can use a general Bill of Sale to transfer ownership of any personal property from one person to another. A Car Sale Receipt, on the other hand, is used only for vehicle transactions.

If you're recording a sale of goods that aren't vehicles, a general Sales Receipt may suit the transaction better. To agree to terms before any money changes hands, a Sales Agreement can secure the sale ahead of the Car Sale Receipt. 

Why you need a Car Sale Receipt

A Car Sale Receipt provides a clear way to prove the legal transfer of vehicle ownership. It also protects both the seller's and buyer's interests and can help prevent disputes later on.

A Car Sale Receipt:

• Documents the transaction: It can include both signatures and the date, providing evidence that each party agreed to transfer ownership.
• Establishes "as-is” condition: It shows the vehicle was sold as seen, with the buyer accepting its condition.
• Records payment terms: It confirms the agreed-upon sale price and the payment method.

Sellers also have separate duties when a vehicle changes hands, as set out in the government's guidance for anyone selling a vehicle.

Who should create a Car Sale Receipt?

Generally, the seller creates the Car Sale Receipt during a vehicle transaction. If you're buying a vehicle and the seller won't provide a receipt, you can create the document yourself and have the seller sign it.

If several people are buying or selling a vehicle together, you can list multiple sellers or buyers.

Buyers may also want to run the standard pre-purchase checks on a used vehicle before signing anything.

What to include in a Car Sale Receipt

A complete Car Sale Receipt helps leave no room for confusion. Each detail serves a purpose and helps protect both parties if questions come up later.

Some sellers also attach a copy of the vehicle's MOT history so the buyer has a record of its past test results.

How to write a Car Sale Receipt

An easy way to create a receipt for a vehicle sale is by using LawDepot's Car Sale Receipt template. We'll ask for the following details:

• Vehicle details: The make, model, year, body type, VIN, and odometer reading.
• Party information: The seller's and buyer's names and addresses.
• Sale price: The agreed amount and whether VAT is included, added, or not applicable.
• Payment method: How the buyer is paying. For example, cash, banker's draft, cheque, electronic funds transfer, or a Promissory Note.
• Loan and lien details: Any outstanding finance secured against the vehicle and who will be responsible for the remainder of any loans or liens.

Print two copies, then sign them in person so the seller and buyer each keep a record.

In almost all cases, a buyer shouldn't accept a Car Sale Receipt with a loan or lien against the vehicle unless the seller intends to assume full responsibility for that outstanding debt. 

Where financing remains outstanding, the terms are usually set out in a separate Loan Agreement between the seller and their lender.

What to do after completing a Car Sale Receipt

Once a private vehicle sale is completed and signed, the Driver & Vehicle Licensing Agency (DVLA) must be notified of the change of ownership. 

Here's how the process usually goes:

1. The seller notifies the DVLA of the transfer, either online or by post.
2. The seller fills in the green "new keeper" section of the V5C logbook and gives it to the buyer.
3. The seller either destroys the remaining V5C when notifying DVLA online or sends it to DVLA when notifying by post.
4. The DVLA sends a new V5C to the buyer within five to seven working days.

The process may differ slightly in Northern Ireland. A buyer may also need to register the vehicle if it has no logbook, though the DVLA advises against buying a vehicle without one.

Car Sale Receipt FAQs