Buying A Car In Spain [How-to 2022 English Guide]
Buying a new car is always an exciting experience. But if it is in a country that you just moved to, the experience can quickly become daunting and challenging. You must practice caution when purchasing a car in Spain, as anywhere else. This article will give you the details of the process of buying a car in the country, in a bid to make the procedure slightly easier for you. These include the things you should be mindful of and how much everything costs.
Can A Foreigner Buy A Car In Spain?
The language barrier and bureaucratic procedure can create problems if you are looking to buy a car, and make the process slightly more tedious. However, you don’t necessarily need to be a resident to purchase a car in Spain. You will just need to prove that you are living in the country. For buying a car therefore, you need your NIE number (Numero de Identidad de Extranjero) which is a tax identification number needed to track all financial activities, your passport, proof of address and some documentation to prove your income. To drive the car, you can use your foreign driver’s license for six months, but after that you will need to get a Spanish driver’s license.
Types Of Cars To Buy In Spain
New Car
There are several advantages to buying a new car. Firstly, you will not need to spend a lot of time navigating the bureaucratic system of the Provincial Traffic Authority to get your registration paperwork; this will be handled by the dealership you are buying from. You will also get a warranty on your vehicle, and can even get the car financed and then pay it off in monthly installments. Some dealers also offer financial incentives like waiving the registration fee if you pay in cash.
Used Car
You can even buy a second hand car from a private seller if you want to negotiate a bargain. But you must be mindful of the fact that you probably will not get any warranty in that case. You will need to draw up a purchase agreement and also transfer the ownership of the car in your name. If you are not fluent in Spanish, you can hire a gestor who can help you with the purchasing process. In exchange for a small fee, the gestor will handle all the extensive paperwork for you.
You can find used cars online, or in markets specifically set up for such cars. Cities like Barcelona also have a used cars fair every year. If you are not sure which car to buy, you can try out multiple cars here to see which one you like best.
How To Buy A Car In Spain
Find The Car You Want
Before buying a car, take all the time you need to decide what you want from your new vehicle. If you are based in one of the main cities, you might want to consider getting a smaller car since parking spaces are scarce in the more crowded areas, and you will have a hard time finding on-street parking. On the other hand, you might want to get a bigger car that has more luggage space if you are a frequent traveler or have a large family. You can also get either an automatic car or a manual one, depending on your preferences.
Since this can be a time-consuming process, you can use the services of a car broker. This will be someone working in a car dealership on behalf of the client, in exchange for a fee. You can tell them your requirements and budget, and they will find an appropriate vehicle for you.
Moreover, if you want to retain the maximum value of the car over time in case you want to sell it some time in the future, you will need to consider the popularity of the cars. This will include factors like the model, colour of the car, the type of fuel it uses and extras etc. For instance, diesel cars used to retain the best value in the past. However, that is quickly changing as most of Europe is moving to sustainable options, meaning that people no longer value a car fueled by diesel anymore.
Visit The Car Dealership
Buying from a car dealership, or a private seller is purely a personal choice. While buying from a private seller will save you some money, an official car dealer will give you some warranty for the car that will last up to a year. A private seller will not give you any warranty at all, even though it may be required by law in some places. It simply becomes too hard to prove otherwise if you have not been given warranty. Moreover, when buying from a private individual, you will need to draw up a legal purchase agreement. If you buy from a well reputed dealer, they will take care of all the bureaucratic paperwork related to buying a car, themselves.
Buy The Car
Depending on your preference, you can either make an upfront payment and the dealer might pay the registration fee. You can even pay through a standing order, which means a certain amount will be deducted every month from your account. If you have an old car already, you can get it exchanged for part of the price i.e. get a discount on the purchase of the new car.
Get The ITV Inspection
The Inspeccion Tecnica de Vehiculos will determine if the vehicle that you are buying is roadworthy or not. The price for an average car will usually be around 35 to 50 euros, but you can find the most updated rates at https://www.veiasa.es/itv/tarifas .
If your car is between four and ten years old, you will need to undergo this inspection every two years, and if it is more than 10 years old, the inspection must be done every year. Cars less than four years old are exempted, which means that a new car will not need to be inspected.
You can book an online appointment to get your vehicle inspected at one of the many ITV testing centers in Spain. You also have the option to be notified via email or text message when your next inspection is due. Once your vehicle passes the test, you will be given a certificate and a sticker to display on the top right hand side of your windscreen that signals this.
Book An Appointment To Register The Car
Once you buy a car, you will need to register it to transfer the ownership under your name. To get this done, you can either book an appointment with Trafico yourself, or you can ask the car dealer to take care of this on your behalf. The third option is to use the services of a gestor to facilitate the process.
Buy Car Insurance
It is illegal in Spain to drive a car without insurance; you must have a minimum level of insurance on your vehicle. This is called the Seguro de Teceros or third-party liability. This covers the damages incurred by third parties and includes vehicle damage as well as injuries to people sitting in that car. It won’t, however, cover damages to your vehicle. For that, you will need to get a more comprehensive policy. You can either have one which covers third party damage plus some of the damage to your vehicle (such as theft and fire), or get a comprehensive policy which covers all of the damage to your vehicle and that of the third party even if the accident was your own fault.
You have an option to transfer your current policy to the new vehicle, but you will need to confirm with the seller. The car dealer will also offer you a policy or suggest where you can get one. Some of the bigger names in the industry include Mapfre and Mutua Madrilena.
Register The Car
The process of registration to a new owner will involve a change in legal status within 30 days. First you will be issued a temporary proof of the process (Permiso de Circulación Temporal) and at the end of the month you will receive the official paperwork (Permiso de Circulación Definitivo).
You will have to pay administrative fees to the Direccion General de Trafico (DGT) for your official registration card. This fee can be around 100 euros.
Buy Your License Plates
The official Spanish traffic body is the Direccion General de Trafico (DGT) which assigns license numbers to vehicles. Once you have been given the official registration card, you can get your license plates made from a specialist. You will have to pay around 5 to 50 euros depending on the specialist you visit. The government approved plates are white, with black letters on them. Some types of cars also have differently colored plates: taxicabs have blue plates, trailers have red plates, while temporary plates are also red in color.
The license plate displays the registration number as well as the EU flag. Since the registration numbers are given serially, you cannot customize your plates and can only display the number you are given in the registration process.
Pick The Car Up
Once you are done with all of the above steps, let your car dealer know about your license plate number so they can prepare all of the necessary documentation. Once you go to collect your car, you can also get all the accompanying paperwork from your dealer. This will include the purchase agreement, warranty documents, final invoice etc.
Timeline From Car Purchase To Car Pickup In Spain
It can take around three months to get the ownership documents and license plates for your car. If you don’t get the documents in this time period, your application has probably not been successful. Usually, when an application is rejected, it is because the owner has not paid all the necessary taxes and fines.
Can You Buy A Car In Spain Online?
There is an increasing trend in Spain to buy cars online as well. There are some specialist platforms like Clicars, Webycar and Motor.es which cater to the changing needs of the market. The first two sites allow you to sell and buy used and slightly used cars. Motor.es can be used for buying new cars, according to your budget and the manufacturer.
This is not a very risky prospect anymore. The site will take care of the vehicle transfer and paperwork for you. They also have a professional who can certify if the car is roadworthy, and then give you a warranty. The whole process gives you more security and lesser hassle than buying from a private seller.
How Much Does It Cost To Buy A Car In Spain?
Car Prices In Spain
In Spain, people tend to keep their cars for longer time periods, which drives up the prices in the second-hand car market. This can cost you somewhere around 11,000 euros, which is not exactly cheap. However, it is still cheaper than buying a new one, and you might get a bargain if you negotiate with the seller.
A new car will cost you around 20,000 to 22,000 euros or more, and this price is continuously rising every year. Even when buying from a dealership and filling in a purchase order, you need to be mindful of a few things. You need to make sure that the price will not vary during the time that you wait for the car, and that the initial deposit will contribute towards the final price of the car.
Car Taxes In Spain
Whenever you buy a car from a dealership, the sales tax will usually automatically be included in the price you agree on. But if you buy from a private seller, you will be paying the transfer tax (impuesto de transmisiones patrimoniales). This is calculated on the official current value of the vehicle, not the sales price and is usually not included in the agreed price. The Ministry of Finance calculates the value of the car depending on depreciation, and the age and power of the vehicle. The transfer tax can range from 4 to 8 percent of the value of the vehicle. When buying a new car, you will need to pay a registration tax instead. This can be between 0 and 14.75 percent of the purchase price. This tax is used to penalize polluting cars and is calculated on the carbon dioxide emissions of the vehicle. Cars emitting less than 120 grams per kilometer will be exempt from the tax.
There is also an additional Spanish road tax (impuesto sobre vehículos de tracción mecánica). This is a yearly payment which depends on the type and weight of the car and the area you live in, among other things. On average, this can cost you around 175 euros a year, but if you wish to calculate the exact amount, you can do so at https://www.dieselogasolina.com/calcular-precio-impuesto-circulacion-ivtm.html . You may even have to pay a toll for using certain main roads, depending on where you are using the car in Spain. This can be done either in cash or through credit card.
The Spanish tax authorities do not send out any official reminders to you to pay these road taxes. Therefore, to avoid getting fined, you can set up reminders or get this process automated by contacting your local town hall.
Cost Of Car Insurance In Spain
In Spain, any car that comes out into the public roads needs to be insured. The minimum legal requirement is a third-party coverage policy. You can get this policy at as low as 100 euros, but it is more likely to be around 250-350 euros in most cases. If you decide to go for a comprehensive policy, you can expect to pay around 400 euros a year. The premium will also vary according to factors like the value and age of the vehicle, your own profile and age etc. Moreover, busier cities like Madrid and Barcelona are also likely to have higher premiums.
If you wish to pay a lower annual premium, you can do so by voluntarily increasing the excess or deductible amount. This is the amount you are liable to pay towards each claim. There is also a bonus system in Spain, whereby if you don’t file any claims in a year, you can get your premium reduced for the next year. The premium will increase if you have a history of accidents.
Cost Of Car Registration In Spain
Car registration prices are revised on a regular basis, and change from one year to the next. You can expect to pay around 100 euros currently.
Cost Of Becoming A Member At An Automobile Club
Once you become the owner of a car, you can join an automobile club such as the Royal Automobile Club of Spain (Real Automovil Club de Espana). Some clubs like these also undertake research on road safety, adding to the advisory material on the topic. The cost of such a membership can be around 40 euros.
Conclusion
This guide is meant to serve as a starting point in your research before buying a car in Spain. It details all of the steps that you must follow, in addition to what you can expect to pay at each step. If you are an expat who is not familiar with the bureaucracy, there is still no need to worry since there are plenty of facilitation services you can use. Now that you have all the information, you only need to buy your car and enjoy it!