Buying a Car in Spain

Buying a car in Spain as an expat might seem daunting at first glance. Car salespeople have a bad reputation, and just like everywhere else, caution is required when purchasing a vehicle in Spain. The language barrier and bureaucratic timetables can create additional problems.

Smaller car models are advisable since parking spaces are small and on-street parking is often difficult to find in Spanish cities.

You might find the process of buying a car in Spain trying, but with proper preparation for your vehicle purchase, there is no reason for it not to run smoothly.

Necessary fundamentals for buying a car in Spain

• A folder for paperwork
• Current and up-to-date documentation
• Help from a good friend, a helpful Spaniard, or a gestor

The necessary fundamentals for buying a car in Spain start with having at least one of the following documents (although it’s best to have as many as possible, with photocopies).

• NIE number or passport
• House deeds or a rental contract for a minimum of one year (Escrituras)
• Municipal registration (Certificado de Empadronamiento), which is available free from the Town Hall or online in many municipalities. It should not be older than three months.
• If financing the car through a dealer, you’ll also need to provide your three last payslips (tres nóminas), or some other proof of income, such as a copy of a work contract.

In order to buy a car in Spain, you don’t need a driver’s licence, car insurance, or a residence permit.

The NIE Number and Residency in Spain 
Getting an Empadronamiento in Spain

Paperwork for buying a car in Spain

The paperwork for buying a car in Spain is similar whether buying from a private seller or a dealer. You should ask to see the originals of all documents, particularly when dealing with a private seller.

• The log book (permiso de circulación), which is the car’s ID, shows proof that the vehicle identification number corresponds with the one on the vehicle’s registration document. It provides information on the car, such as the number plate, make, model, name and address of the owner and when it was first registered.
• A transfer of ownership form (Transferencia)
• The ITV document (Inspección Técnica), which is stamped and dated on passing the last inspection and detailing when the next one is due. This proves that the car met the minimum environmental and road safety standards required by law.
• The road licence fee (Impuesto Sobre Vehiculos) for the current financial year, paid in full

Car insurance in Spain

Car insurance in Spain is mandatory for all vehicles. It is illegal to drive a car without insurance. All drivers must have the minimum seguro de terceros (third-party cover), also known as the responsabilidad civil obligatoria (obligatory civil responsibility), which covers third-party damages and usually fire and theft. You’re no longer required to carry physical insurance documents in the car, although it’s wise to have copies available.

One way to obtain insurance is to ask the seller if they will transfer the existing policy. Dealers also offer insurance policies or suggest which insurance companies are offering competitive rates. The big insurance companies in Spain, such as VidaCaixa, Mapfre or Mutua Madrileña, are reputable and efficient, so there is no cause for concern. Dealers also offer insurance policies or suggest where to get one.

When finally picking up your new, insured car, you’ll be given the registration document. It’s a good idea to have a photocopy of this document stamped at the Town Hall to keep in the car. Keep the original at home; if lost, it is time-consuming and expensive to replace.

Useful links

• Kelisto: Car Insurance Comparison Platform
• Mapfre: Major Spanish Insurance Provider
• Mutua Madrileña: Leading Insurance Company
• Caser Expat Insurance: Specialist Expat Coverage

Buying a car in Spain from a private seller

Buying a car in Spain from a private seller is doable, and as there is normally more leeway to negotiate with these individuals, it can be a great way to bag a bargain. That said, keep in mind that private purchases will get no guarantee or warranty on the car.

Buying a car from a private seller involves entering into a joint legal relationship with the seller and handling all the vehicle registration paperwork yourselves.

A purchase agreement (contrato de compraventa) must be drawn up, and the transfer of ownership must be made at the vehicle registration desk of the Traffic Department (Jefatura de Tráfico), where a transfer document (Solicitud de Transmisión de Vehículos) needs to be filled in and signed. You must complete this transfer within 30 days of purchase. Make sure that the date and time of the transfer appear on the contract so that any traffic fines the seller has left unpaid are not passed on to the buyer.

Also, note that it is accepted practice to take the proposed car for a thorough inspection (toda prueba) at a mechanic.

To start your car-hunting process, you’re advised to check local newspaper kiosks for specialised car magazines, such as Autopista, Coche Actual, Car and Driver, and Autofácil or use their online versions. Popular digital platforms include Autoscout24.com, Coches.net, and Wallapop, which has seen significant growth in automotive sales.

If external finance is needed for the car, you’ll have to apply for a loan from the bank in person. Bank rates can be better than dealers’ rates, but banks also have stricter criteria for eligibility. If external finance is not needed, payment will have to be made with a bank cheque since personal cheques are barely used.

Hiring a gestor

If you’re not yet fluent in Spanish but live in an area with a large expat community, you’ll find that there are plenty of people happy to help with the purchasing process and answer questions. In areas with fewer expats, or if you don’t have the time to queue in lines and devote to the laborious paperwork necessary, it might be worth hiring a gestor to do most of the process.

Since the gestor has runners who deal with many clients at the same time, you shouldn’t have to pay for too much of the gestor’s time.

Useful links

• AutoScout24: European Car Marketplace
• Coches.net: Spanish Car Sales Platform
• Wallapop: Popular Spanish Marketplace
• DGT Vehicle History Check Service

Buying a car in Spain from a dealership

Alternatively, buying a car in Spain from a dealership means you can buy a new or used car from a reputable dealer (concesionario), and the dealer will handle the paperwork with the Traffic Department. You’ll also get a guarantee that lasts up to a year on the car. Unfortunately, the overall price of the car will most likely be more expensive than one bought from a private seller, even if the dealer does offer a discount or a special deal.

Depending on your circumstances, it could be possible to pay upfront for the car, and the dealer might pay the registration fee, especially on a new, list-price car or if it is paid in cash.

Due to various government plans to reduce pollution, cars over 10 years old may be taken in part exchange and qualify for a discount on a new purchase. The current MOVES III programme offers substantial incentives for electric vehicle purchases, with grants reaching several thousand pounds for environmentally friendly cars.

When purchasing cars through a dealer, the car finance will be paid through a standing order monthly, which is an automatic deduction from the appointed account.

Useful links

• FACONAUTO: Spanish Car Dealers Association