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Vehicles & Driving

Car purchases

On the purchase of a car, it is advisable to find out about the history of the car, from the owner who has access to such information from the Icelandic Transport Authority.

Car purchase and sale

Car salesmen are responsible for ensuring the transactions involving vehicles are performed in the proper manner and shall ensure the completion of all documents involving such transactions.

Those who purchase and sell vehicles without the mediation of a car salesman do not have as secure rights and must be careful to ensure that the preparation of contracts and completion of relevant documents is correctly performed.

Sales documentation

Purchase agreements and deeds of title must be completed on the appropriate forms.

The Icelandic Transport Authority shall be notified of transfers of vehicle ownership. The notification may also be sent to a vehicle inspection office. The new owner is then registered in the Vehicle Register and will receive a new registration certificate. 

Care must be taken to identify the buyer's insurance company on the owner transfer notification. Moreover, the seller must cancel the existing insurance policy and settle with his insurance company.

On the sale of a vehicle by a car salesman, the following documentation must be at hand while those who purchase or sell without the mediation of a car salesman are strongly advised to familiarise themselves with these documents:

  • Certificate proving that the seller is the owner of the vehicle being sold or has authorisation to effect the sale.

  • List of earlier owners.

  • Information on damages and repairs.

  • Information on any liens on the vehicle.

All information on the registration and history of ones own vehicle may be accessed from the Register of Vehicles of the Icelandic Transport Authority. Access is through the service page on the website of the Directorate of Internal Revenue (RSK) by means of the same web page password as is used in submitting tax returns. Certain information on other vehicle can be obtained in exchange for a fee from the sellers of the Vehicle Registry.


More than one owner can be registered for each car.

Those under the age of 18 may not sell or purchase a car or be a co-owner of a car except with the permission of the district magistrate. The permit must accompany the notification of transfer of ownership submitted to the Icelandic Transport Authority otherwise the transfer in ownership will not be registered.

Used cars

Buyers of used cars are entitled to have the car's condition examined at their own expense by an independent party, without any obligation to buy. Condition examinations are performed by accredited inspection agencies.

Used cars, that are purchased from overseas, must receive new registration.


Find out what documents must be obtained and how they should be completed on the purchase or sale of a car without the mediation of a car salesman.

Special attention shall be paid to the formal purchase agreement, current loans, ownership transfer notifications, insurance and registration of the deed of conveyance.

It is a good idea to have an independent party examine the car before the purchase is finalised.