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Buying a Car

Pre-requisites for Buying a New or Used Car

All non-Spanish need to present one of the following:

• NIE or NIF number.

• Residence, (Residencia), card.

• Present a title deed, (escritura), or a rental contract of a Spanish property.

• Present a certificate of residence (certificado de empadronamiento) issued by the Town Hall where the foreigner is registered.

Buying a New Car

General

Some decades ago new cars in Spain were considerably more expensive than in the UK and other northern European countries. Subsequently, many Europeans would import their cars, (legally or illegally), rather than buy Spanish cars. Currently cars in Spain are cheaper than in the UK, but prices are 20 per cent higher than in some other EU countries.

Spanish cars depreciate much more slowly than in the UK, probably because, traditionally, Spaniards would always buy a new car and proceed to run it until it was ready for the scrap yard, thus limiting the trade in used vehicles. This is less true these days, but the market in used vehicles is still much less than that of the UK.

The net outcome is that the majority of expatriates prefer to buy new Spanish cars.

Finance

Most new car dealers offer finance on purchases. Currently there are very few companies that will give finance to a non-resident permit. You can always request a loan from your bank.

On Completion of Sale

Check the following:-

• The car comes with 1 year’s road tax paid to the local council

• The car has its Registration Document.

Scrapping Your Old Vehicle

In order to rid the environment of scrapped vehicles and reduce air pollution, the government will reduce your new car tax by a significant amount, if you scrap a leaded fuel car for an unleaded fuel one.

Buying a Used Car

Used Car Sources

As in other countries you can buy a used car from the following sources:-

• A dealer associated with a particular manufacturer

• A car rental company

• A general used car dealer

• A private individual.

The order of the above list, starting from the top, represents, more or less, the degree of security surrounding the purchase. It also relates to the amount you will pay for a particular model.

Your choice of source will very much depend on your budget and the kind of service you expect from the vehicle.

Buying From a Dealer Associated With a Particular Manufacturer

Advantages

• Better after sales service

• Cars are normally sold in nearly new condition

• Secure written guarantees issued with the purchase

• A complete and accurate maintenance record is available.

Disadvantage

• The price tag will normally be higher, (no such thing as a free lunch!)

Buying a car from a Rental Company

The important factor here is the quality of the particular company. This varies from top international companies like Avis, Hertz and Budget, to small “backstreet” local companies. The practice for the larger rental companies is to sell off vehicles even as little as 6 months old. The smaller companies keep their cars longer and we all know what kind of punishment hire cars receive from some customers. The price tag will relate to the quality of the company.
The large companies will have an impressive range of models to choose from and will normally come with limited guarantee.

Buying From a General Used Car Dealer

The quality of dealers varies tremendously, with many run by expatriates, particularly British. There is a natural tendency for expatriates to buy from their own people, because of the communication advantage. Be cautious, take advice from members of your community. The fact that a dealer speaks your language does not guarantee his integrity!
Buying From a Private Individual
Spain is catching up with the UK in terms of the size of the use car market. This is exemplified by the number of classified ads. In the Spanish and Foreign press. Traditionally Spaniards have not lavished the same degree of care to their cars as northern Europeans and Americans. The prevailing attitude has been that a car is simply a means of transport and not a status simple, or a shrine to embellish the front of the house.
The point here is that buying from an unknown individual can be precarious.

Good Avice before Buying

Get the vehicle checked out by a reputable Spanish Independent Vehicle Information Organisation, (equivalent to HPI in the UK). This will ensure that the vehicle is not stolen, technically sound and does not carry any “baggage”, (outstanding debts). It will help you to sleep nights after the purchase!

Vehicle Transfer

The used car dealer will usually handle the transfer procedures for you. In a private sale you will normally benefit for the services of a Gestor. Make sure you agree with the seller who will pay the transfer costs (Gestor) and transfer taxes (4%).
 

You can do the transfer yourself, (although the procedure is time consuming), at the "trafico" offices. Formally known as the "Jefatura Provincial de Trafico".

A full list of offices with phone and fax numbers and email addresses can be found on the trafico website at www.dgt.es.

You will need the following documentation:

• Completed Application form

• Circulation permit, (Permiso de Circulacion), signed by the seller. (This is effectively the car registration document or UK Log Book).

• Paid up municipal tax receipt

• Receipt of vehicle transfer tax paid to Hacienda of 4% of sale price

• ITV (Inspección Tecnica de Vehiculos) (MOT in UK) certificate plus a photocopy

• Residence permit plus photocopy

• Stamped addressed envelope (for return of car document)

• Fee, currently, 40.20 euros

If you sell a used car make sure that the transfer is done properly or the new owner may forget something and you will remain liable for municipal taxes and parking tickets. The same applies if you scrap a car.

Importing a Car

This is a complicated procedure, best performed by gestors who specialise in the subject. If you insist on doing it yourself, there is a very good set of guidelines at http://www.graysworld.co.uk/spanish-property/spain-cars.htm.