How to renew car tax
If you've just bought a used car, or you're due to renew tax on one you already own, the process trips a lot of people up in different ways. Here's how to sort both, and the one thing used car buyers often get wrong before they've even left the driveway.
The Cazoo editorial team
Published on 23 July 2026 | 5 mins read
Car tax, officially called Vehicle Excise Duty (VED), needs sorting every year to keep driving legally. But if you've picked up a used car recently, there's a common misunderstanding that catches people out before they've even driven it home: it doesn't come with any road tax already paid, however many months the previous owner had left on it.
Since 2014, car tax hasn't been transferable between owners, even if you're buying from a family member. Whatever the seller had left is cancelled the moment they tell the DVLA the car has changed hands, and they get a refund for any full months remaining. That means before you drive your newly-bought used car anywhere, you need to tax it yourself, in your name.
Here's how that works, plus what to do if you're simply renewing tax on a car you already own.
Buying a used car? You'll need to tax it yourself
Whether you've bought from a dealer or a private seller, road tax doesn't automatically carry over with the car. If you're buying from a dealer such as with Cazoo, this is usually explained for you as part of the handover, so you can drive away with everything already in order.
If you're buying privately, it's entirely down to you. You cannot legally drive the car away, even for a few minutes, until you've taxed it in your name, regardless of what the seller tells you about its current tax status or how many months are supposedly left on it. Don’t forget, if a car cost over £40,000 when it was new, it means the owner is liable for luxury car tax in the first five renewal years, costing £425 extra.
What you need to tax a car for the first time
As a new keeper, you won't have a full V5C logbook in your name yet, so you'll need a couple of things from the seller before you can tax the car:
- The green 'new keeper' slip (V5C/2), which the seller should hand over at the point of sale. It carries an 11-digit reference number you can use to tax the car straight away, without waiting for your own V5C to arrive.
- A valid MOT certificate, if the car is more than three years old.
- Valid insurance, arranged before you drive.
- A debit or credit card, or the details to set up a Direct Debit.
If the seller can't provide a new keeper slip, treat that as a red flag rather than a minor inconvenience. Without it, you'll need to apply for a replacement V5C before you can tax the car or drive it legally.
How to tax your newly-bought used car
The quickest way is online at gov.uk, using the reference number from the new keeper slip. Tax starts immediately once you've paid, so you can drive away the same day. You can also do this over the phone with the DVLA (open 24 hours), or in person at a Post Office branch that deals with vehicle tax, if you'd rather have a paper trail.
Renewing car tax after that first year
Once your full V5C logbook arrives in your name, usually within a few weeks, renewing each year works the same way it does for any other driver. The DVLA sends a reminder letter (a V11) shortly before your tax is due, and you can renew online, by phone, or at the Post Office using the reference number on that letter or your V5C.
Setting up a Direct Debit is worth considering if you'd rather not think about it again. Payments are taken automatically, spread monthly, quarterly or annually, and you'll be notified if a payment ever fails so you can sort it before your tax lapses.
What happens if you don't tax your car
Driving an untaxed car is easy to get caught out on, since number plate recognition cameras check automatically as you drive around. If your vehicle is detected without tax, you’ll usually receive a fine covering the outstanding tax plus a penalty first, which can escalate to a much larger fine if it isn't resolved. If you're not planning to drive the car for a while, declaring it off the road with a SORN is the legal way to temporarily stop paying tax on it, and you can check any vehicle's current tax status for free using the gov.uk checker.
Sorted before you've even driven off
Getting the tax right is one of the small jobs that's easy to overlook amid the excitement of a new car, but it only takes a few minutes to sort. When you buy through Cazoo, we make sure the essentials, tax included, are covered as part of the handover, so getting behind the wheel of your next used car is as straightforward and as risk-free as it should be.