In short
You get a call or an email, usually the same day as the draw. The operator confirms you've won and asks whether you want the car or the cash alternative. You'll typically have a few days to decide.
If you take the cash, it's a bank transfer, usually within a week or two. If you take the car, the operator arranges delivery or a handover date, transfers the V5C into your name, and you sort insurance before you drive it. Most operators film the handover for their winners page.
There's no tax to pay on either. The main things to think about before you decide are insurance costs, running costs, and whether the cash alternative is close to what the car's actually worth.
The call
Draws are usually live, but you don't need to be watching. Once the winning number is matched to a ticket, the operator contacts the entrant directly — almost always by phone first, with an email to follow. Some operators try to reach the winner during the stream itself; most do it straight after.
If they can't get hold of you, they'll keep trying. The terms usually give a window — often 14 to 28 days — in which you have to respond before the prize can be redrawn or forfeited. It's rare for it to come to that, but it's a good reason to enter with a phone number you actually answer and an email address you check.
Be a little wary of the "you've won" message itself, particularly if it comes through social media. Legitimate operators will contact you using the details on your account, not through a random DM, and they'll never ask you to pay a fee to release the prize. If in doubt, log into your account on the site and check your entries, or ring the operator on the number in their footer.
Car or cash
This is the first real decision, and most operators want an answer within a few days.
The cash alternative is a fixed sum stated in the T&Cs, typically somewhere between 60% and 80% of the car's advertised value. We've covered how it's calculated and how to think about it in a separate guide, but the short version is: check what the same car sells for privately, get an insurance quote, and be honest about whether you'd actually keep it.
Plenty of winners take the money. A £120,000 supercar is a wonderful thing to win and a genuinely expensive thing to own, and the cash is often the better outcome for someone who'd have to sell it within a year anyway. Equally, if you've won a £25,000 family car you'd otherwise have financed, taking it is a very good result.
Whatever you choose, get the operator's confirmation of the prize and the figure in writing before anything moves.
If you take the cash
The operator will ask for your bank details and transfer the money. Most pay within a week or two; the terms will say. There's no deduction — the prize isn't taxed, and the operator doesn't take a cut.
Keep the operator's written confirmation and the bank record. If your bank flags a large incoming payment, or asks about the source of funds, a named UK company and a competition confirmation answer the question immediately.
If you claim means-tested benefits, be aware that a lump sum counts as savings and can affect your entitlement. That's worth a conversation with Citizens Advice before the money lands.
If you take the car
This is where the operator's process matters, and it's one of the things we look at in our reviews.
Sourcing. Some operators already own the car — it's been photographed, it's in their unit, it's the one on the listing. Others buy it once you've confirmed you want it, which can mean a wait of a few weeks and occasionally a slightly different spec or colour. The terms should say which applies, and a good operator will tell you upfront.
Handover. Most operators either deliver the car to you or arrange a handover at their premises or a dealer. The bigger ones film it and post the video; if you'd rather not appear, say so — most are fine with it, though a few terms include a publicity clause, so check.
Paperwork. The V5C (logbook) is transferred into your name the same way as a private sale. The operator completes their side and you'll get the new logbook from the DVLA in the post. You'll also need to tax it, which you can do online once it's in your name.
Insurance. This is yours to arrange, and you'll need it before you drive the car anywhere. Get quotes as soon as you've decided to take the car, not on handover day. Performance and supercar premiums vary enormously by age, postcode and history, and a few winners have found the insurance quote is what tips them towards the cash.
Costs on day one. Road tax, insurance, and for a new car over £40,000 the expensive car supplement on top of standard VED. None of it is tax on the prize, but it's real money and it starts immediately.
The first few months
Once the car's yours, it's yours — sell it, keep it, do what you like. There's no lock-in and no obligation to the operator, though a few ask that you don't sell it back to the dealer they bought it from within a set period.
If you sell it, you won't pay capital gains tax; private cars are exempt. And if you keep it, the running costs are the running costs. A lot of winners underestimate servicing on high-end cars in particular — a main-dealer service on a supercar can run to four figures — so if you're planning to keep it, budget for that.
What winners regularly get wrong
A few things come up again and again in winners' stories.
Not reading the cash alternative before the draw, and then having to decide in a rush. Assuming the operator sorts insurance — they don't. Taking a car they'd have to sell and getting less than the cash alternative after dealer margins and time. Not realising a partner or spouse would have to be added to the insurance as a named driver rather than just borrowing it. And, occasionally, missing the operator's call because it came from an unknown number.
None of these are disasters. They're the difference between a smooth fortnight and a stressful one.
Frequently asked questions
How will I be told I've won a car competition? The operator contacts you directly, usually by phone on the day of the draw, with an email confirmation to follow. Results are also posted on their winners page.
How long do I have to claim? Typically 14 to 28 days, stated in the T&Cs. If the operator can't reach you in that time, the prize may be redrawn.
Can I take cash instead of the car? Almost always. The cash alternative is a fixed figure in the terms, usually 60–80% of the car's advertised value. You'll be asked to decide within a few days.
Do I pay tax on a car I win? No. Competition prizes aren't taxed as income in the UK, and private cars are exempt from capital gains tax if you sell later. You'll pay road tax and insurance as normal.
Who pays for delivery? The operator, in almost all cases. Delivery or a handover at their premises is part of the prize.
Do I have to be filmed for the winners page? Usually not if you ask, though some terms include a publicity clause. Check before you accept.
Can I sell the car straight away? Yes. Once the V5C is in your name it's yours to sell. A few operators ask you not to sell it back to their source dealer for a set period.
What if the operator doesn't pay out? It's rare with established operators, and it's exactly what live draws, winners pages and independent reviews exist to guard against. If it happens, keep every piece of correspondence and contact Citizens Advice; you can also report the company to Trading Standards.