Are you planning to own a car in Spain? Unless you live in an area that is super walkable and has public transport (or at least a reliable taxi service), you’re likely going to want a car in Spain. Having lived there for the better part of two decades, Sally shares her experience of buying a car.
Tips for buying a car in Spain…
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Should you bring your car with you to Spain?
Unless you are seriously attached to your car or it is a classic, it really is expensive and a lot of hassle to import your car. You will have to get it checked for EU standards, change the matriculation and get new documents. It is not a particularly straightforward process, so you’re better off leaving your car to babysit your UK home while you’re away or selling it help fund your new car purchase in Spain.
How easy is it to buy a new car in Spain?
Luckily, the process is straightforward. Spain has outlets for every major make of car both new and second hand. Prices vary from region to region, even city to city, so it could be worth taking a short trip to purchase your car.
Dedicated dealerships are generally expensive for new cars but you can always haggle, perhaps getting some of the “extras” for free. Part exchanging your current car helps lower the price but it must be a left-hand drive vehicle for a Spanish dealer to be interested.
Go electric, get a better deal
There are incentives to buy EVs (electric vehicles) for residents. A 15% refund on your income tax is in force until May 2024 and may be extended. New diesel cars are not worth buying as they are gradually being restricted by major cities in favour of more environmentally friendly cars not only in Spain but also in other European cities.
Read your Emigration Guide to find out everything you need to know about moving abroad.
Buying a new car
The main disadvantage of buying new is depreciation, probably in the region of 17% in year one and about 10% each year thereafter. Also, if you are paying tax in Spain, when it comes to assets for wealth tax, the tax authority, Hacienda, values your car at a price higher than its current value if it’s more than 3 years old.
On the other hand, if you are purchasing new, you have a long warranty, clean vehicle, all the extras you want to personalise it, less costly maintenance and the latest gadgets and technology.
It pays to visit various dealerships and ask for their best offers. Try different makes, perhaps tell them a budget and ask what they can do for that price. (I did this when I bought my car some years ago and eventually bought a new car priced at €19,000 for €11,000. It is still driving perfectly 10 years on).
Buying a second-hand car
There are several different types of category for second hand cars in Spain which can be a bit confusing. Here are just a few:
- “0 km” will actually be a car used as a showroom model and driven by potential customers. Its mileage will be low and it should also have a full warranty.
- “Ex rental” will have passed an ITV (MOT) test each two years it has been rented. The usual ITV inspection is for four years from year two until a vehicle is ten years old, after which it is yearly.
- “Used cars”. These are sold by dealers and must show several things including: its price and legitimacy, car’s technical details, ownership, age, mileage and service details, ITV certificate, any modifications due to accident or other, the date the dealer purchased the car, a minimum of one year warranty.
Dealers offer discounts for buying in your old car but in most cases, it’s better to sell your car privately as you will get a better price. Another thing to take into account is that the dealer expects people to take out some kind of financing to purchase the car through them. It’s possible that you will be paying more for the vehicle without this option.
Buying from individuals is a less secure route unless you know about cars and can check everything. The mileage is often “corrected” and there might be hidden problems.
Used car markets
To Barcelona for the car market!
Some cities have annual used car markets, Barcelona has a very interesting one. It’s a great place to test drive different models all in one place!
Buying online
This is the way Spanish people are buying used cars these days. As with other businesses, selling online means there’s no showroom and other overheads that traditional dealers have to face. The results are fair prices and no need to haggle. There are two big players online at present, Quadis Select and Clicars.
But also try Coches and Caroutlet. You could also consider online rental, Idoneo. In several bigger cities, people have decided not to own a car as public transport is relatively cheap, parking is expensive and on the occasions they might need a car, they rent one, so doing away with the cost of insurance, maintenance and taxes.
Just remember that online too, ignore any offers of diesel cars. They are being offloaded fast for the reasons explained above.
The taxes involved when you buy second-hand
For second hand vehicles, there is a sales tax but IVA is included in the price. One of the advantages of buying from a dealer or online is that they will manage all documentation and taxes due. If you do decide to buy from a private seller, make sure to have a contract drawn up or both parties to sign. Sometimes problems occur later on and this can even happen when buying from family and friends!
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