As families expand and shrink and our needs change, our vehicle requirements will inevitably change, too. You may want to switch a big family vehicle for a smaller run around, or maybe you need more boot space to accommodate a four-legged friend. Whether you are trading up or down in term of size and value, it pays to know how to get the most money from your vehicle sale.
Transferring tax
It is no longer possible to transfer the tax of a vehicle when it is sold. Instead, when you buy or sell a used car, the new owner needs to tax the car and the vendor can apply for a refund on any tax that they have paid for that extends beyond the sale date. Tax is backdated to the beginning of the month, but refunds are given from the start of the next month so if you buy a vehicle at the start of the month, you will effectively pay tax twice for that month. If you know that you are buying a new vehicle at the beginning of the month, you could declare your vehicle off road and apply for a SORN (statutory off road notification), however that will mean that the vehicle can’t be used on the road at all, which could cause issues if you are trying to sell the vehicle and the potential buyer wants a test drive.
If you want to avoid paying the double tax, wait until you have agreed to sell your car and buy a new one; declare your existing vehicle off road for the next month, and tax your new vehicle for the same month.
The practicalities of selling
Last week, we looked at the practicalities of selling your vehicle before you have finished paying off the finance agreement. Assuming any finance is paid off, a good valet and polish before anyone views it will make a big difference. Make sure that everything works and if anything is faulty or doesn’t work, make sure that you specify it in your advert. If you have any problems or dents, work out the cost and time involved to fix them against the possible increase in value once they are fixed; if you can get significantly more for the vehicle than the repairs cost, it may be worth considering doing the repairs first.
Once you have sold, you need to inform the DVLA. If you fail to do this, you will continue to be legally responsible for the vehicle, even when the new owner has paid for it and driven it away.
If you have any concerns or questions about selling your vehicle, or if you unsure of what you need to do, the safest option may be to get in touch with your local car dealership. They will be able to let you know a rough trade in price, and if you tell them what you are looking for, they will also be able to keep an eye out for your next vehicle, too.
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