What to Do When You Inherit or Are Given a Car

Inheriting a car, or having one given to you by a family member, often arrives alongside a difficult time emotionally, which can make the practical side of things feel overwhelming on top of everything else. Working out inheriting a car what to do next, from the paperwork through to deciding whether to keep, sell or pass the car on, is much easier when broken down into clear, manageable steps rather than tackled all at once.

Sorting the paperwork and legal ownership first

The first practical step is transferring legal ownership of the vehicle, which is handled through the DVLA in the UK. If you are inheriting the car as part of an estate, this usually involves completing the relevant section of the vehicle registration certificate, known as the V5C, to notify the DVLA of the change of keeper. Where the car is being given to you directly by someone who is still alive, the same basic process applies, with both the giver and receiver completing the relevant sections of the V5C.

If the previous owner has passed away and probate is still being sorted out, it is worth checking with whoever is handling the estate about the correct process, since there can be specific steps required depending on whether the car forms part of a wider estate being distributed among several beneficiaries. The DVLA has clear guidance on notifying them of a change in registered keeper, and getting this right from the outset avoids complications later, particularly around insurance and any future sale.

Do not delay this step, since driving or keeping a car registered to someone who has passed away, or who no longer owns it, can create genuine complications, particularly around insurance validity and any penalty notices that might arrive addressed to the previous keeper. Sorting the paperwork promptly, even amid a difficult period, protects you from these avoidable complications.

Insurance, tax and MOT status

You cannot legally drive the car under your own name until you have arranged your own insurance policy for it, since the previous owner’s policy does not automatically transfer to you. Contact insurers as soon as you know you will be keeping the car, since arranging cover can sometimes take a little time, particularly if you need to provide additional information about your driving history or the car’s specification.

Vehicle tax does not transfer automatically with a change of keeper either. Any remaining tax on the vehicle is refunded automatically to the previous keeper or their estate once the DVLA is notified of the change, which means you will need to tax the car afresh in your own name before driving it, even if it appeared to have tax remaining under the previous owner. This can catch people out, so it is worth checking the car’s tax status directly with the DVLA before assuming it is covered.

Check the MOT status too, since an out of date MOT means the car cannot legally be driven on the road except to a pre-booked MOT appointment. It is straightforward to check a vehicle’s MOT history and current status online using the registration number, and this is worth doing early on so you know exactly where you stand before making any plans to drive the car regularly.

Deciding whether to keep, sell or pass the car on

Once the immediate paperwork is sorted, the bigger decision is what you actually want to do with the car. Some people keep an inherited car because it holds sentimental value or genuinely suits their needs, while others find it makes more practical sense to sell it and either put the money toward something else or use it to help fund estate related costs. There is no universally right answer, and it is worth giving yourself time to think it through rather than feeling pressured to decide immediately.

If keeping the car is under consideration, think honestly about whether it actually suits your circumstances, including running costs, insurance for your specific situation, and whether the size, type and age of the car genuinely fits your life. A car that made perfect sense for the previous owner may not be the ideal fit for you, and there is no obligation to keep a car simply because it has sentimental associations, particularly if it creates a genuine financial or practical burden.

If selling feels like the right choice, either immediately or after a period of consideration, the same principles that apply to any used car sale apply here too, including understanding the car’s genuine market value and condition before agreeing a price with a buyer, whether that is a private sale, a dealer part exchange, or a specialist buying service.

Getting the car properly assessed before you decide

Whether you plan to keep or sell the car, it is genuinely useful to have it properly assessed early on, particularly if you do not know a great deal about its recent history or how well it has been maintained. A car that has perhaps not been driven regularly in the period leading up to inheritance can develop issues from standing unused, including flat spots on tyres, a battery that has drained, or brakes that have started to seize slightly from lack of use.

A full health check gives you a clear, independent picture of the car’s actual condition, covering everything from tyres and brakes to fluid levels and any warning signs that might not be obvious from a casual look. This is valuable whether you decide to keep the car, since it lets you budget for any work needed and drive with confidence, or sell it, since it gives you an accurate picture of its condition to inform a fair asking price.

If the car has been sitting unused for an extended period, certain checks become particularly important before driving it regularly again, including the condition of the tyres for any cracking or perishing regardless of tread depth, the state of the brake fluid and brake components, and the battery’s genuine health rather than simply whether it starts on the day. A thorough service can identify and address these issues before they become a problem on the road.

Practical considerations if the car has been sitting unused

Cars that have not been driven for weeks or months, which is common in the period surrounding a bereavement, can develop a range of issues that are not always obvious at first glance. Tyres can develop flat spots from sitting in one position, which sometimes work themselves out after driving but can also indicate the tyre needs replacing if the deformation does not resolve. Fuel that has sat unused for a long period can also degrade, particularly in older cars, which is worth bearing in mind before assuming the car will run exactly as it did previously.

Brake discs can develop light surface corrosion from standing, which usually clears itself after a short drive with some braking, but persistent grinding or a spongy pedal feel after driving suggests something more significant needs attention. The battery is one of the most commonly affected components, since batteries lose charge gradually even when not in use, and a battery that has been sitting for an extended period may need replacing entirely rather than simply recharging.

Rodents and small pests can also cause damage to cars left unused for extended periods, sometimes chewing through wiring or building nests in the engine bay, which is worth checking for, particularly if the car has been stored somewhere like a garage or driveway for several months without being started.

Sentimental value versus practical reality

It is completely understandable to feel a strong emotional pull toward keeping a car that belonged to someone close to you, and there is nothing wrong with factoring sentimental value into your decision. Many people do choose to keep an inherited car for exactly this reason, and it can become a meaningful way to feel connected to a family member’s memory in daily life.

That said, it is worth being honest with yourself about whether keeping the car is sustainable in practical terms, including whether you genuinely need or want a second car if you already own one, whether the running costs fit comfortably within your budget, and whether the car itself is one you feel confident and safe driving regularly. There is no wrong answer here, but making the decision with clear eyes, rather than purely on emotion in a difficult moment, tends to lead to a choice you feel comfortable with in the longer term.

Some people find a middle ground works well, such as keeping the car for a period of months before deciding, which allows some emotional distance to develop before making a more considered, practical decision about its long term future.

What happens if the paperwork and checks are skipped

Delaying the DVLA notification, driving without proper insurance in your own name, or using a car with expired tax can all lead to fines, points on your licence, or invalidated insurance in the event of an accident, none of which anyone needs added to an already difficult time. These are avoidable problems, and sorting them out early, even amid grief or a busy period, protects you from compounding an already stressful situation.

Similarly, driving an inherited car regularly without having it properly checked over, particularly one that has been sitting unused, risks driving a vehicle with developing faults that were not apparent at a glance. Taking the time to get the car properly assessed, sort the paperwork correctly, and make a considered decision about its future gives you the best chance of the process going smoothly, whatever you ultimately decide to do with the car.

Talking to other family members before deciding

When a car is inherited as part of a wider estate, it is worth having an open conversation with any other family members involved before making firm decisions, particularly if the car forms part of a jointly inherited estate rather than being left directly to you alone. Misunderstandings about who has responsibility for the car, or differing views on whether it should be kept, sold or given to someone else in the family, can cause unnecessary friction at an already difficult time if not addressed early and openly.

If several people have an interest in the car, whether financially through the estate or simply emotionally through shared memories, agreeing together on next steps, even informally, tends to lead to a smoother process than one person making unilateral decisions without consulting others. This is particularly relevant if the car needs to be sold and the proceeds form part of a wider estate to be divided, since getting a fair, independent valuation benefits everyone involved and avoids any suggestion that the car was undersold or oversold to favour one party.

Where the car is being kept within the family, whether by you or passed to another relative, it is worth being clear about ongoing responsibility for costs such as insurance, tax, maintenance and any outstanding finance, so that expectations are aligned from the outset rather than assumed and potentially misunderstood later.

Understanding any outstanding finance on the vehicle

Before finalising any decision, check whether the car had any outstanding finance agreement at the time of inheritance, since this affects both the legal position and any decision about keeping or selling it. An outstanding finance agreement does not simply disappear, and it needs to be settled, typically from the estate, before clear ownership can be transferred or the car can be sold on to someone else with a clean title.

If you are unsure whether finance is outstanding, a vehicle finance check using the registration number can confirm this quickly, and it is a sensible step to take early in the process regardless of whether you plan to keep or sell the car, since it avoids an unwelcome surprise further down the line. Executors handling an estate should generally include this check as a standard part of dealing with any vehicle that forms part of the assets being distributed.

Source: GOV.UK: notify DVLA of a change in vehicle ownership