Buying A Car
New cars in Spain, due to the taxing, are more expensive than in many other European countries (registration tax (impuesto sobre la circulación) up to 12% and 16% VAT). Most new cars are sold at list price, although you should still shop around for the best deal, as dealers compete in offering discounts, guarantees, financing terms and special offers.
As an incentive to boost new and semi-new car sales, anyone who has owned a car over ten years old for more than a year, is given a registration tax discount if they sell that car and buy another one within 5 years. The tax break is currently 48€. This discount is only applicable when buying from a dealer, not on private deals. The "Plan Prever" is due to be abolished on January 1, 2008.
Residents can buy cars on a hire purchase agreement (installment plan) although those who aren't property owners must usually provide a financial guarantee or obtain a guarantor.
For financing you will need to present: a certificate from your Spanish bank stating that you pay your bills regularly; a copy of your employment contract; a copy of your previous year's tax return.
The deposit (down payment) varies with the dealer and payments can be spread over one to four years. After making the deposit, you have to sign a number of 'bills of exchange' for each monthly direct debit instalment due.
Dealers sell car insurance - make enquiries of your own, it may be less expensive.
Personally importing any car from the UK is usually much cheaper than buying the same car in Spain or elsewhere in Europe.
It's possible to buy a new car VAT-free in another EU country, e.g. from the factory of a European manufacturer or from an exporter in countries such as Belgium, Denmark (usually the cheapest due to high local taxes), Greece and the Netherlands, and personally import it into Spain. In some countries (e.g. the UK) you can buy a VAT-free car up to six months before exporting it. Ensure that the vehicle meets Spanish homologation inspection specifications; otherwise you will not be able to register it. On the motor chassis there is an id number that can be referenced.
There's no longer any import duty on cars imported from other EU countries, although you must pay Spain's registration tax (impuesto sobre la circulación) and 16 per cent VAT (if VAT hasn't already been paid in another EU country.)
Used Cars
Used or second-hand (segunda mano / ocasión) cars in Spain are more expensive than in other EU countries.
Usually the best bet is to purchase a used car that's around two years old. Many of the car hire agencies sell their models at this point. Spaniards are not much on routine maintenance once outside the warranty period.
Try to get a car with a warranty. There are numerous publications listing vehicles for sale: Mi Coche, Motor en Mano and Anuncio Motor.
websites where cars are advertised
www.cocheactual.es / www.autonetplus.com / www.supermotor.com
Second-hand car prices vary with the region of Spain and are generally higher in remote areas and the islands than they are in Madrid and other major cities.
Always Check The Following:
ITV is up-to-date.
That the chassis number tallies with the registration document (permiso de circulación), which should be in the name of the seller when a car is purchased privately (check his identity card or passport.)
The service history that confirms the kilometres or miles shown on the clock.
The service coupons have been completed and stamped by an authorised dealer.
That you receive a "transfer of ownership," (transferencia) form from the seller. The form is available from the provincial traffic department.
Car dealerships should provide a 12 month warranty.
When you buy a car from a dealer, he will arrange the transfer of ownership. When buying privately use a local gestor.
Be extremely wary of buying a car with foreign registration plates, as it can be very expensive to register it in Spain if you need to.
When you purchase a used car in Spain, the vehicle must be de-registered at the provincial traffic department, at this point you receive the registration document (permiso de circulación,) the ITV test certificate and card, the road tax receipt, and a receipt for the payment of transfer tax. You have 30 days to register the vehicle in your name.
In the south of Spain, 4 wheel drive vehicles and professional cars (Mercedes and BMW) are favourite vehicles to steal. Thieves often smash windows to steal stereo systems and other articles from cars - even articles of little worth such as sunglasses or cigarettes. Never leave anything visible, store everything in the boot. Have copies of all your car documents in your home.
If your car is stolen or anything is stolen from it, report it immediately to the police in the area where it was stolen. You can report it by telephone, but must go to the station to complete a report (denuncia). Report a theft to your insurance company as soon as possible.