Purchases and sales of vehicles

The seller is obliged to inform the buyer about everything relevant to the vehicle in question, and the buyer must familiarize himself with everything regarding the vehicle. Change of ownership of a vehicle must be reported to the Icelandic Transport Authority.

Good to keep in mind when buying and selling a car

• That the seller is the owner of the vehicle or is authorized to sell.

• Get information on previous owners.

• Get information on damage and repairs.

• Have the vehicle inspected at an inspection station.

• Obtain information on mortgages that are placed on the vehicle.

Information about registration and history of your own vehicles can be downloaded from My pages on Ísland.is.

Purchase agreement and waiver

The buyer and seller often make a purchase agreement and waiver (often the same document). The contract is a confirmation of the transaction that took place (the document does not need to be sent to the Icelandic Transport Authority or another public institution).

Change of ownership

It is up to the seller to notify the change of ownership as soon as possible, as the seller is responsible for vehicle taxes, insurance, potential damages and parking fees until the notification has been received and registered by the Icelandic Transport Authority.

When the change of ownership is registered, the liability insurance will automatically be transferred to the new owner and is cancelled by the old one.

The conditions for the change of ownership are that

• Vehicle taxes and other related fees have been paid.

• The fee for the change of ownership in the amount of 2.872 ISK is paid.

Settlement and delivery of vehicles

It is good to keep the following in mind

• not to deliver the vehicle until the purchase price has been paid.

• it is not sensible to negotiate instalments.

Has the change of ownership been registered?

• If the change of ownership is notified electronically, the Icelandic Transportation Authority automatically approves it and updates the vehicle register.

• If the change of ownership is notified on paper, processing may take several days.

Individuals under the age of 18 years

Individuals under the age of 18 may not sell, purchase, or co-own a vehicle without the permission of the District Commissioner. When an individual is under the age of 18, the notification of registration must be submitted on paper by the owner/partner and the permission from the District Commissioner must be enclosed.