Car buying in Spain

Helpful advice about purchasing a car in Spain

A guide to buying a new or second hand car in Spain

Buying a car in Spain is generally more expensive than in most other EU countries. However, they do tend to hold their resale value much better. In order to buy a Spanish registered car you need a residencia, (residence card) or a NIE number, an escritura (title deed) or rental contract for a Spanish property, or a certificado de empadronamiento (certificate of residence) in a Spanish community.

Buying a new car
Spain is generally a buyer's market for new cars and you should be able to find a bargain although some cars are more expensive in Spain than in other EU countries so look around and question the dealers about value for money. The price of a vehicle may appear more expensive because the taxes on new cars are higher in Spain than in any other EU country due to the registration tax of 12 per cent, which is charged in addition to VAT (IVA) at 16 percent.

Buying a new car for cash
When you buy a new car from a garage, you will need to supply them with a copy of your NIE number form which was given to you by the police, station. You will also need to produce evidence of your address. The garage will undertake all the registration process with the relevant traffic department.

This usually takes two days. A new car does not need an ITV (MOT) for 4 years and should come with one year's road tax paid to the local council. On collection of your new car you will be given the registration document. Keep this safe: a replacement will be expensive and very time consuming.
DO NOT KEEP THE ORIGINAL IN THE CAR. Take the original and a photocopy to the Town Hall and ask them to stamp the photocopy as a true copy of the original. You should also carry your insurance certificate with this as well as a receipt for your premium paid.

Buying a second hand car in Spain

Secondhand cars in Spain are more expensive than in many other EU countries, as cars hold their value better. If often pays to buy a used car that's about two years old, as depreciation in the first one or two years is considerable. Ex-rental cars are widely available here on the Costa del Sol and can be very good value. Note, however, that older cars in Spain (outside of their warranty period) are not always well maintained. Car dealers usually give warranties on used cars of from 3 to 12 months, depending on the age of the car and the particular model.

If you intend to buy a used car in Spain whether privately or from a dealer make sure of the following:
1. The car has a current ITV test certificate, if applicable.
2. The Chassis number tallies with the registration document, which should be in the name of the seller when a car is purchased privately.
3. That you receive a transfer of ownership (transferencia) from the seller. The form is available from the provincial traffic department.

When you by a secondhand car in Spain you must obtain the following: documents from the Seller:
1. Registration document (permiso de circulacion). The permiso de circulacion is the Spanish equivalent of the English registration document and the owners details have to be changed when vehicles change hands. However this is a far more complicated process than in the UK
2. The ITV test certificate plus the technical sheet (Ficha Tecnica) and a photocopy.
3. The road tax receipt and a photocopy
4. A receipt for the payment of transfer tax (4%)
You have 15 days to register the vehicle in your name.

VERY IMPORTANT ADVICE
It is vital that a history check is made on the vehicle before your purchase. This is the Spanish equivalent to an HPI check in England.
This check is important in Spain because just like property, previous owners debts can be put on the car. This can include unpaid social security, loans and taxes. The debts stay with the car, so it is now the responsibility of the new owner to clear the debts.