Vehicle Sale Receipt

What is a vehicle sale receipt?

A vehicle sale receipt is documentary evidence of the sale of a vehicle. This documentary evidence can act as a record that the transaction took place.

What does private individual sale mean?

A private individual sale means that the person who is selling the vehicle (i.e. the seller) is selling the vehicle as part of or in the course of business.

Is it mandatory to have a vehicle sale receipt?

No, it is not legally mandated to have a vehicle receipt, however, it is recommended to have one as proof of the transaction and serve as protection for the parties involved if there is any legal dispute about the sale. Additionally, the vehicle sale receipt could act as extra proof of the transfer of ownership.

What is a warranty?

A warranty is a promise or guarantee the seller makes to the buyer, assuring the buyer that the vehicle will meet certain standards or quality. This warranty can either a be a warranty on the vehicle or a warranty to sell.

A warranty on the vehicle means that the seller is promising the buyer that the vehicle will have a certain quality and if it doesn't, the seller will repair, replace or refund the purchase.

A warranty to sell, on the other hand, is a guarantee by the seller stating that they have the legal right to sell the vehicle and that the vehicle is not subject to any hidden legal issues or legal charges.

What has to be done once a vehicle sale receipt is ready?

After a vehicle sale receipt has been completed and payment has been made, the receipt should be signed by both parties (i.e the buyer and the seller), and they should retain a copy that has the signature of both parties on it.

Does the seller need to provide a warranty on the vehicle?

No, a private seller does not need to offer a warranty on the vehicle. A private seller will typically sell the vehicle "as is" which only means that the buyer must have visually inspected the vehicle before purchasing it.

Does the seller need to have a warranty to sell?

Yes, the seller should provide the buyer with a guarantee that they have the right to sell the vehicle. This would generally mean that the seller fully owns the vehicle and there are no hidden legal issues associated with the vehicle (e.g. a legal claim by a third party over the car, or a legal charge with a bank over the vehicle).

What must a vehicle sale receipt contain?

A vehicle receipt must contain:

• the name and address of the seller
• the name and address of the buyer
• the details of the vehicle being sold (that includes the make, the model, the colour, the registration number, the VIN number and the mileage of the vehicle)
• the purchase price
• the date of the sale
• DVLA registration
• seller's warranty of their right to sell the car
• signatures of the parties

What laws apply to a vehicle sale receipt?

The main legal provisions which are relevant to a vehicle sale receipt are:

The Road Traffic Act 1988

The Road Traffic (Northern Ireland) Order 1995

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