# Buying a car



## Do28 (Dec 21, 2010)

I have been asked by a friend of mine what is involved in buying a car in Spain and as I don’t own or really ever drive here I don’t know the answer. 

He is just a holiday visitor with a long term rented apartment and has a U.K. licence.

He wants to buy something and leave here to save on endless car rentals. 

Am I right in understanding there all sorts of taxes to pay on transfer?

Any advice I can pass on would be great.


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## snikpoh (Nov 19, 2007)

When you buy a car here it needs to be registered in the new owners name. This involves various taxes and fees. There is a tax on the value of the vehicle, a fee made by DGT, vehicle/road tax may need to be paid, fees for new plates etc.

Take a look at Calculo y transferencia por internet de coche y moto. Micmicmotor to see a sample breakdown


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## Joppa (Sep 7, 2009)

Or if you buy from a garage/dealer, all the costs of transfer, tax etc should be included, plus by law you get a year's warranty. You pay more than buying privately, but it will save a lot of hassle, such as personal visit to the vehicle office to effect transfer.


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## Do28 (Dec 21, 2010)

Thanks for the responses. I assume there is no restriction on him buying it as a non resident?


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## kaipa (Aug 3, 2013)

flybe said:


> Thanks for the responses. I assume there is no restriction on him buying it as a non resident?


 Have a feeling you might need to be on the padron which non-residents aren't.


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## Alcalaina (Aug 6, 2010)

I know a couple of non-residents who keep cars here, so it must be possible. You pay the car tax to the local town hall but I don't think you have to be on the padrón to do that.


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## simonsimple (Sep 3, 2021)

Been looking to buy a car but the main dealers seem mainly interested in selling it to me on finance which I don't particularly wish to do. I have seen several cars but with Finance price 35k but a cash price 39-41k. I find this very frustrating having to pay many thousands more for the privilege of paying in cash (bankers draft or transfer etc...not actual notes).
Last week I went into a dealer in Malaga near the Airport and saw one that I was very interested in and as above was 39k with finance and 44k without..........I was staggered that the salesman laughed when I offered 40k and walked away and got a coffee...........they must be selling lots of cars to have this attitude.


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## Joppa (Sep 7, 2009)

simonsimple said:


> Been looking to buy a car but the main dealers seem mainly interested in selling it to me on finance which I don't particularly wish to do. I have seen several cars but with Finance price 35k but a cash price 39-41k. I find this very frustrating having to pay many thousands more for the privilege of paying in cash (bankers draft or transfer etc...not actual notes).
> Last week I went into a dealer in Malaga near the Airport and saw one that I was very interested in and as above was 39k with finance and 44k without..........I was staggered that the salesman laughed when I offered 40k and walked away and got a coffee...........they must be selling lots of cars to have this attitude.


Yes, used car dealers make a lot of money selling on finance, as they get commission from the finance company. 10% difference between cash and financed price is typical. Like in UK, second-hand cars are in demand and price has firmed up considerably, and in demand cars (low mileage, petrol, late model) sell quickly.


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## blondebob (Aug 16, 2019)

Joppa said:


> Yes, used car dealers make a lot of money selling on finance, as they get commission from the finance company. 10% difference between cash and financed price is typical. Like in UK, second-hand cars are in demand and price has firmed up considerably, and in demand cars (low mileage, petrol, late model) sell quickly.


Yes it is an odd system here when it comes to trying to do a "deal", they always push the finance in my experience.


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## Overandout (Nov 10, 2012)

You can try to make sure that the finance deal has an early pay off mechanism without additonal cost. Normally they tie you in for a minimum period, so for example you might not be able to pay your 3 year financing plan off in the first year, but possibly in one go in month 13. That way you can save a lot of the interest, or at least enough to make it worthwhile accepting the "discounted" price knowing that you will never pay the "full price", even with the obligatory minimum interest.
It is usually easier and more productive to try to negotiate with the finance company than with the vehicle seller.


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## snikpoh (Nov 19, 2007)

kaipa said:


> Have a feeling you might need to be on the padron which non-residents aren't.


No, you absolutely don't need to be on the padron - common myth.


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## Joppa (Sep 7, 2009)

Overandout said:


> You can try to make sure that the finance deal has an early pay off mechanism without additonal cost. Normally they tie you in for a minimum period, so for example you might not be able to pay your 3 year financing plan off in the first year, but possibly in one go in month 13. That way you can save a lot of the interest, or at least enough to make it worthwhile accepting the "discounted" price knowing that you will never pay the "full price", even with the obligatory minimum interest.
> It is usually easier and more productive to try to negotiate with the finance company than with the vehicle seller.


Finance deal often stipulates a minimum 5-year term, so you are unlikely to be able to pay off after one year without hefty charges. And interest is quite high, usually approaching 10% p.a. so after 5 years you end up paying a lot more than the cash price.


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## Do28 (Dec 21, 2010)

I just got a lift into the airport to go to work by a friend who is a student here from Bahrain. He bought a car here for the years duration of his course as cheaper than renting and registered it to himself no problem. The garage kept it registered to them for a period while he got his NIE and the registered it in his name at his rented apartment. No padron needed. His insurance was more expensive because he does not have a Spanish licence but otherwise he had no problem.


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## snikpoh (Nov 19, 2007)

flybe said:


> I just got a lift into the airport to go to work by a friend who is a student here from Bahrain. He bought a car here for the years duration of his course as cheaper than renting and registered it to himself no problem. The garage kept it registered to them for a period while he got his NIE and the registered it in his name at his rented apartment. No padron needed. His insurance was more expensive because he does not have a Spanish licence but otherwise he had no problem.


I've never heard of this happening here


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## kalohi (May 6, 2012)

Overandout said:


> You can try to make sure that the finance deal has an early pay off mechanism without additonal cost. Normally they tie you in for a minimum period, so for example you might not be able to pay your 3 year financing plan off in the first year, but possibly in one go in month 13. That way you can save a lot of the interest, or at least enough to make it worthwhile accepting the "discounted" price knowing that you will never pay the "full price", even with the obligatory minimum interest.
> It is usually easier and more productive to try to negotiate with the finance company than with the vehicle seller.


We did exactly this with the last car that we bought. We had a 4 year finance plan, but we could (and did) pay it off in full after 18 months with no penalty and a big savings on the remaining interest due.


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## Do28 (Dec 21, 2010)

I have just spoken to my neighbour who is British and has a Spanish car. He is not a resident and does not have a Spanish driving licence. He has only an NIE. He just went to a dealer and bought a car, registered it to his apartment and insured it there. Dealer dealt with all of the paperwork. It does not seem as complicated as I first thought. I have passed on all the comments to my friend who is looking to do the same. It might even convince me to buy a car one day......


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## simonsimple (Sep 3, 2021)

Bit more positive, was in a main dealer in Malaga and actually got a salesman to engage.........was a showroom model and I wrote my offer on a piece of paper with contact number and email.............now a waiting game I suspect.


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## suki123 (Sep 17, 2021)

snikpoh said:


> No, you absolutely don't need to be on the padron - common myth.


OK, but how do you register your card, buy the insurance etc?


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## xabiaxica (Jun 23, 2009)

suki123 said:


> OK, but how do you register your card, buy the insurance etc?


To which card do you refer?


Obviously you do need an address...

There are other ways: bills, escritura etc., which you can use as proof of address when buying a car.


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## suki123 (Sep 17, 2021)

It was a typo, I meant a car...to register a car. Thanks


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## Alcalaina (Aug 6, 2010)

suki123 said:


> It was a typo, I meant a car...to register a car. Thanks


You have to register it with the Ayuntamiento in order to pay the annual car tax. When we bought a new car, the dealer did this along with all the other paperwork, but I guess if you had to do it yourself and weren't on the padrón you'd need to provide be proof of address as suggested by Xabia.


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## Do28 (Dec 21, 2010)

I have an update! I got offered a steal of a deal on a car from friend who runs a garage here and now own a British racing green Mini Cooper!!!! My first car in Spain and a bit of whim purchase!

Buying it was surprisingly easy, the garage dealt with all the transfer fees as part of the price, sorted out a years MOT and service etc. I got issued temporary documents by the dealer and then went to the insurance company and got insurance for full cover for €160. An absolutely painless experience other than multiple visits to garage and insurance agents.

The insurance company accepted by UK licence as my Spanish licence (converted from my Dutch licence has still not arrived).

All in all pretty simple.


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## RickES (Jan 26, 2021)

All of this discussion brings up a question in my mind: do you need to have (or MUST you have) a Spanish driver's license to buy a car (either new or used) in Spain? I plan on starting driving lessons as soon as possible after we move but it would be nice to have a car while I'm preparing for my driving test as I'll have a US license and and IDP.


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## Do28 (Dec 21, 2010)

RickES said:


> All of this discussion brings up a question in my mind: do you need to have (or MUST you have) a Spanish driver's license to buy a car (either new or used) in Spain? I plan on starting driving lessons as soon as possible after we move but it would be nice to have a car while I'm preparing for my driving test as I'll have a US license and and IDP.


No you don’t a Spanish driving licence. You have 6 months to get one. Although I know some people who have never bothered and continue to drive on overseas licences…….. not condoning it but it goes on.


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## RickES (Jan 26, 2021)

flybe said:


> No you don’t a Spanish driving licence. You have 6 months to get one. Although I know some people who have never bothered and continue to drive on overseas licences…….. not condoning it but it goes on.


Thanks for that. I fully intend on getting a Spanish driver's license, but it would obviously be easier to be able to purchase a car prior to getting a Spanish license, both for convenience and practice. Thanks.


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## MataMata (Nov 30, 2008)

You don't need a padron just official proof of address, i.e. a rental contract or property deeds. Some dealers insist that you must have a padron but they are wrong.

You do not need a driving licence of any sort to buy a car but you cannot drive it whilst learning, until you pass the test you can only drive a driving school car.


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## RickES (Jan 26, 2021)

MataMata said:


> You don't need a padron just official proof of address, i.e. a rental contract or property deeds. Some dealers insist that you must have a padron but they are wrong.
> 
> You do not need a driving licence of any sort to buy a car but you cannot drive it whilst learning, until you pass the test you can only drive a driving school car.


That leaves me slightly confused. I would be moving to Spain with a current US driver's license and and IDP. Would this not continue to be legal for 6 months?


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## Do28 (Dec 21, 2010)

RickES said:


> That leaves me slightly confused. I would be moving to Spain with a current US driver's license and and IDP. Would this not continue to be legal for 6 months?


Yes it would be.


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