Why might a dealer hold on to the V5?

When you purchase a motorhome, most buyers expect to receive the V5C registration document (the logbook) soon after the sale goes ahead. However, there are some situations we’ve heard about where the dealer may hold onto it, which can obviously raise questions and concerns amongst buyers. 

Here we’ll explore some of the common reasons why this might happen, as well as a few things to watch out for.

Some potential reasons why a dealer might do this

There are several perfectly reasonable and common explanations for why a dealer might retain the V5 after a sale:

1. Handling the DVLA transfer on your behalf

Many dealers prefer to manage the change of ownership themselves by submitting the paperwork or using the DVLA’s online system. If this is the case, you should receive a new V5C in your name directly from the DVLA within a few weeks. It’s a common practice that helps ensure the vehicle is properly registered and reduces the chance of mistakes.

2. Registration in progress (new or imported vehicles)

If the vehicle is brand new or recently imported, it may not yet be fully registered with the DVLA. The dealer will need to complete this process before the V5C can be transferred to you. This is possibly true for some motorhomes converted from vans or other custom builds.

3. Private number plate transfer

If the motorhome is having a personalised registration plate removed or transferred, the V5C will need to be updated with the new number. The dealer may retain the logbook while this is sorted, which can take a little time.

4. Demonstrator or pre-registered vehicles

This is a seemingly longstanding motor trade practice. If a franchised dealer registers a vehicle in their own name as a demonstrator - often to qualify for manufacturer discounts - they are usually required to keep it in their name for a fixed period of time. The vehicle is technically registered to the dealership, but you are still the legal owner from the moment you receive the bill of sale.

This often allows the dealer to pass on part of the manufacturer’s discount to you, meaning you get a nearly-new vehicle at a reduced price. However, do bear in mind that the V5C will list the dealer as the first keeper, which may affect the resale value slightly, so it’s important to be informed about this before committing to buying.

What are the potential issues?

While many reasons are completely legitimate, there are a few situations that should prompt further enquiry:

1. The dealer doesn’t legally own the vehicle yet

Some dealers operate on a sale-or-return basis or they may have bought the vehicle at auction and not yet received the paperwork. If the V5C isn’t available for this reason, it’s worth proceeding with caution, and definitely asking more questions.

2. Outstanding finance or legal issues

If there’s finance still owing or the vehicle has been categorised as an insurance write-off, there might be a delay with the paperwork being available, which could be a stalling tactic while these matters are resolved.

3. Lack of transparency

If the dealer is vague or unwilling to explain why they’re holding on to the logbook, that’s a red flag for you to think about. You have every right to know what’s happening and when you can expect to receive the updated documentation.

4. Think about what this means in the longterm…

You may be the owner of the motorhome, but it you don’t have the V5C, what does this mean in the event of you getting a speeding ticket or a parking fine? It will obviously be sent to the dealership and they will have to state who was driving.

Is there an insurance impact for you, in any way? To be sure there’s not, you should probably contact your insurer to explain the situation.  

And what about going abroad? If there are any issues when away, you are often asked to show the paperwork for the vehicle, including the V5C.

And what if you want to sell your motorhome shortly after purchase? Will this even be possible, if you haven't got the V5C readily available?

What you should do if this happens

- Always ask for written confirmation of why the V5C is being held and when you’ll receive it.

- Check the vehicle’s history using a reputable service such as HPI to uncover any finance, insurance or mileage discrepancies. Make sure you know exactly    what you are buying!

- If in doubt, verify the situation with the DVLA, especially if the delay stretches beyond what the dealer promised.

- Keep your invoice or bill of sale safe, as this is your proof of legal ownership, even if the V5C is still in the dealer’s name.

In most cases, a dealer holding on to the V5C is nothing to worry about, particularly if they’re handling the DVLA registration process or offering you a pre-registered vehicle at a discount. That said, it always pays to be well-informed and to ask the right questions, and a trustworthy dealer will have no problem explaining the situation and giving you confidence in the transaction.

If you’re ever unsure, don’t hesitate to seek advice or check with the DVLA directly - you need peace of mind when making such a big investment!