Motorists who sell or scrap their cars could face a £1,000 fine if they forget to complete one crucial step.
The warning comes from vehicle specialist Sean Wright, who is urging drivers to notify the DVLA as soon as a vehicle is sold or taken to an authorised treatment facility.
Failing to do so can result not only in a hefty fine, but also ongoing liability for traffic offences, tax, or even correspondence from bailiffs if the DVLA has not been informed of the ownership change.
Mr Wright, of car buyer firm Sell Your Problem Car, said: "Selling or scrapping a car does not automatically remove the registered keeper from the DVLA database, so the change must be reported as soon as the vehicle has been handed over.
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"If the record is not updated, fines and enforcement letters linked to the vehicle may still be sent to the previous keeper, even though somebody else is now using it.
"Failing to tell the DVLA that a vehicle has been sold or taken to an authorised treatment facility can lead to a fine of up to £1,000.
"This can become more complicated if the new keeper commits traffic offences or fails to tax the vehicle, as the previous keeper may then need to prove when and to whom the vehicle was transferred."
The warning is especially timely ahead of the September number plate change, as August is a popular month for car sales.
Mr Wright also stressed the importance of obtaining proper documentation when a car is scrapped.
He said: "Drivers should receive a Certificate of Destruction by post or email after the vehicle has been scrapped, as this confirms they are no longer responsible for it.
"If the certificate has not arrived after four weeks, the driver should contact the DVLA as without it, the previous keeper may still face tax demands, penalties, or enforcement letters."
He also reminded motorists of the legal requirements concerning payment methods and identification.
He said: "An authorised treatment facility in England or Wales cannot legally pay cash for a scrap vehicle, so payment should only be made by cheque or bank transfer.
"A dealer offering cash or refusing to ask for identification should be treated with caution, as both requirements are part of the legal process."
Mr Wright also advised sellers to keep thorough records.
He said: "Drivers should keep copies of completed forms, the buyer’s details, payment records, and any written confirmation showing when the vehicle changed hands.
"Bank payments are easier to trace than cash, while photographs, receipts, and copies of the V5C details can help if the DVLA record is later questioned."
Motorists removing parts from a vehicle before scrapping should do so off public roads, ensuring hazardous fluids do not contaminate drains or soil.
Even after part removal, the vehicle must be taken to an authorised treatment facility, which may charge a fee if major components are missing.
Mr Wright said that drivers wishing to keep a personalised registration number must apply to remove it before scrapping the vehicle.
Once the car is destroyed, recovering the registration may no longer be possible.
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