Inheriting a car you don’t want can present a series of emotional and logistical challenges. Whether it’s because the vehicle no longer fits your lifestyle, holds sentimental value you’re not ready to process, or simply isn’t useful to you, it’s important to approach this situation with care. Handling the inherited car properly not only helps you avoid legal complications but can also ensure that you make the most of the situation, whether by selling the car, donating it, or legally managing the vehicle through proper ownership transfer and paperwork. Below, we walk through the essential steps and options available when dealing with an inherited car.

If you decide to sell the inherited car but don’t want the hassle of dealing with all the paperwork and selling processes, Quick Cash Cars offers a solution.

Your Responsibilities as the New Owner

Once you inherit a car, you automatically assume the legal responsibilities of ownership. This means you’re on the hook for ensuring the car is taxed, insured, and in good standing with any outstanding liabilities. The first thing you should do is locate the log book (V5C registration document). This document is a critical part of transferring ownership and notifying the DVLA (Driver and Vehicle Licensing Agency) of the change. Without this, it will be difficult to complete many essential steps, such as selling or scrapping the car. The log book contains important details about the vehicle, and it proves you are now the legal owner. If the log book is missing, you can apply for a replacement online via the DVLA.

5 Options for Dealing With an Inherited Car

Once you have sorted the paperwork, there are several potential paths you can take with the inherited car:

1. Sell It Privately
   If the car is in good condition, you may want to sell it privately. This often brings the highest return, and you’ll have the opportunity to negotiate with potential buyers. Having the car’s service history and the log book readily available can help make the sale smoother and more attractive to potential buyers.

2. Sell to a Dealer
   If you need to get rid of the car quickly, selling it to a dealership could be a viable option. While you might not get as much money as you would through a private sale, dealers are often willing to make an offer on the spot, providing you with a fast, hassle-free sale.

3. Donate to Charity
   Donating the car to a registered charity is an excellent way to give back while eliminating the hassle of dealing with the car. Many charities offer free collection services and may even provide a tax relief benefit in return. It’s a simple process that can help others, especially if the car is still in usable condition.

4. Scrap the Car
   If the car is no longer roadworthy or simply not worth the cost of repairs, you may want to scrap it. This process involves sending the car to an Authorised Treatment Facility (ATF) where it can be properly dismantled and recycled. You’ll receive a Certificate of Destruction, which will notify the DVLA that the car has been scrapped. This is an ideal option if the car is too far gone to be sold or donated.

5. Keep It for Personal Use or Restoration
   If the car holds sentimental value or if you believe it has potential for restoration, you might choose to keep it. However, before making this decision, be sure to assess the car’s condition and the potential costs associated with repairs and restoration. Keeping the car may also mean assuming responsibility for its insurance, taxes, and any maintenance costs that arise.

Legal and Administrative Considerations

Regardless of the option you choose, it’s important to handle the legal and administrative side of the vehicle properly:

• Notify the DVLA:
  The first thing you need to do is notify the DVLA about the ownership change. This is done by completing the relevant section of the log book (V5C registration document). If you don’t have the log book, you can apply for a replacement online through the DVLA.

• Tax and Insurance:
  Even if you don’t plan to use the car, it must be taxed or declared off the road (via a SORN—Statutory Off-Road Notification). If you choose to keep or sell the car, you’ll need to ensure it is properly insured. If you don’t insure the car and it’s not declared as off the road, you may face fines.

• Outstanding Liabilities:
  Before moving forward with any of the options, check if there are any outstanding liabilities on the car. This can include unpaid fines, parking tickets, or road tax. If the car is not clear of these liabilities, it may be difficult to transfer ownership, sell, or donate it.

Paying Inheritance Tax on the Car

Inheritance tax (IHT) is an essential consideration when inheriting any asset, including a car. If the total value of the deceased person’s estate exceeds the inheritance tax threshold, you may be required to pay IHT. The value of the deceased person’s car is included in the estate’s total value, so it’s important to know whether the estate is liable for this tax. It’s a good idea to consult a tax professional to understand the nuances of paying inheritance tax, especially if the estate is large, as they can help you navigate the tax laws and explore potential exemptions or reliefs that might apply.

Choosing the Right Option for You

Once you’ve taken care of the legal and administrative aspects, the next step is deciding what to do with the car. This decision will depend on several factors, including the car’s condition, any emotional attachment you might have to it, and your financial situation. Here are some points to help guide you in choosing the best option:

Assess the Car’s Condition

The first step in deciding what to do with an inherited car is assessing its condition. Does the car run well? Is it roadworthy, or does it need significant repairs? If the car is in good working condition, selling it privately or through a dealership could be a great way to generate some extra cash.

On the other hand, if the car requires substantial repairs or is no longer roadworthy, you might want to consider scrapping it. In the case of a classic or vintage car, you might decide to keep it for restoration or as a collector’s item.

Consider Emotional Value

It’s important to assess whether you have any emotional attachment to the vehicle. Sometimes, a deceased person’s car can hold sentimental value, especially if it belonged to a close family member or civil partner. In such cases, you may decide to keep the car for sentimental reasons or restore it to preserve its memories.

If you feel that the car is not something you want to keep but still holds sentimental value, you could consider donating it to a cause that the deceased person cared about, such as a charity that benefits from donated vehicles.

Evaluate Financial Aspects

Another crucial factor to consider is the financial aspect of dealing with an inherited car. If you choose to sell it, weigh the potential profits against the costs involved in the process. For example, selling privately might net you a higher price, but it also involves advertising, negotiations, and potential delays in finding a buyer.

If you opt to donate the car, the immediate financial benefit may be less, but you could receive a tax deduction or gain peace of mind knowing the car is being used for a good cause. Scrapping the car could be a fast option, but you may only get a small amount of money depending on its weight and materials.

Other Considerations

When dealing with an inherited car, it’s also worth keeping a few additional points in mind:

Transferring Ownership

If you’re transferring ownership to another person, whether it’s selling it or giving it away, you’ll need to complete the appropriate paperwork. This includes filling out the section of the V5C registration document that records the transfer of ownership and notifying the DVLA.

If you plan to keep the car for yourself, remember to register it in your name and ensure that it’s properly insured. If you plan on driving the car on public roads, you must also ensure that it has valid road tax and is in a roadworthy condition.

Car Ownership Responsibilities

Owning a car comes with ongoing responsibilities. If you choose to keep the car, you’ll be responsible for its insurance, road tax, MOT (if applicable), and general maintenance. It’s important to factor in these costs before making a decision.

Additionally, you must also ensure that the car is safe to drive and complies with all UK regulations, especially if you decide to use it on the road.

Pay Inheritance Tax

When inheriting a vehicle, it’s crucial to understand how inheritance tax applies. The value of the vehicle may count toward the total value of the estate, which could affect your inheritance tax liability. If the estate is large enough, you may need to pay inheritance tax on the car’s value. Be sure to consult a professional to understand how this might affect you and the vehicle you’ve inherited.

Bank Accounts and Vehicle Sales

If you plan to sell the car, the proceeds will typically be paid into a bank account. Ensure that the account you use for the transaction is active and properly set up. If the deceased person had bank accounts linked to the car, you may need to go through the proper legal channels to access them and settle any outstanding financial matters.

Conclusion

Inheriting a car can be a complex process with several legal, emotional, and financial considerations. Whether you choose to keep, sell, donate, or scrap the vehicle, it’s essential to handle the legal requirements, including DVLA notification and transferring ownership. If selling the car is the best option, Quick Cash Cars (QCC) can help. With services like free car valuations, instant cash payments, and free vehicle collection within 12 hours, they make the process hassle-free. 

Simply call 01795 250 065 or complete their online form for an instant valuation in less than two minutes. Whether you’re looking for a quick sale or need help scrapping the vehicle, QCC offers 24-hour recovery truck services and no admin fees. By taking the time to evaluate your options carefully and consulting with professionals when needed, you can manage the inheritance in a way that works best for you. 

For those wanting to sell their inherited car without the hassle of dealing with paperwork and lengthy selling steps, Quick Cash Cars offers a straightforward option.