This is one of your legal proof of ownership of a vehicle and is often referred to as the 'registration document' or the 'logbook' and is very important that you look after it!
The document has recently changed in both format and colour. The previous document is blue but this is now being repalced by one which is predominantly red. Both are still valid but old blue ones will be replaced with new red ones when the document is updated to show altered details, such a a new owner.
If you are looking to buy any second-hand car you must look very closely at this document. It contains all the details of the car you are about to hand over your hard–earned cash for so you must check that everything matches.
One of the main reasons for making the change in colour of the V5 document was to help avoid 'ringers' or 'cloned' car — stolen cars made to resemble a legitimate car. These are an increasing risk but you may be able to spot discrepancies like the engine number or VIN (Vehicle Identification Number) not matching the one on the V5C. If either of these does not match, is illegible or you're suspicious then walk away.
Unfortunately following the theft of between 120,000 and 130,000 old-style blue blank V5 documents this risk is very real, so be extra vigilant. If the serial number of the registration document of the cars you're looking at falls within the following ranges - BG9167501 to BG9190500, BG9190501 to BG9214000, BG8407501 to BG8431000 and BG9282001 to BG9305000 - you are advised by the DVLA not to purchase a vehicle, but to report the matter to the police.
The stolen certificates have a different background colour on the Notification of Permanent Export (V5C/4) tear off slip on the second page, which looks mauve on the front and pink on the reverse. On legitimate documents they should be mauve on both sides.
This is a very important document. You'll find it impossible to tax your car or sell it without one. If you are daft enough to lose it then you'll have to apply to the DVLA for a replacement and this will set you back £19.
If you have the document stolen, then report it to the Police as it's quite likely that some villain will be using it to sell a 'ringed' or 'cloned' car. You might not realise that your car has been cloned but you might start getting motoring offence tickets , speeding, parking etc, for places you've never been. If this starts happening to you, report it to the police immediately.