How To Buy A Car In Germany - [2024 Guide] - Navigate Germany

Here is an article that explains everything if you are about to buy a car in Germany.  Cars in Germany are expensive, and people do not prefer to purchase cars due to traffic and parking issues. Public transport in Germany is comparatively affordable and a better option. Cars in Germany are only helpful for road trips and heavy stuff.

Can You Buy A Car While Being An Expat In Germany?

Of course, yes! Once you are a registered resident in Germany, you can buy a car. Driving is only allowed when you have a legal German driving license.

Kinds of Cars in Germany

Cars in Germany are classified here;

New Car (Neuwagen)

To buy a brand-new car, you must consult a car dealer to discuss the details of the chosen model and the buying process.

Used Car (Gebrauchtwagen)

Buying a used car is very common in Germany because of the depreciation rate of a new car. You can buy a used car from an individual, or dealer of used cars.

Car Sold After One Day of Registration (Tageszulassung)

Your vehicle will be registered for one day but not moved from its place in this purchase. These cars are discounted because of the second ownership you get in the papers. Remember that you are the second person in ownership and paperwork but the first person driving the car. 

Car Used For One Year (Jahreswagen)

When you buy a new car used for only one year, it is called a Jahreswagen. Such vehicles are neat, tidy, and in good condition because employees use them at a brand dealership.

The Process to Buy A Car in Germany

Here is the complete process of buying a car in Germany.

Comprehensive Research

The first and most crucial step is to do detailed research about the car you need. Check and select a reliable dealership to buy your desired car. A few of the best options are autoscout24.de, mobile.de, and eBay Kleinanzeigen, which offer English versions of their websites. You can buy both used and new cars after making your profile on these platforms and listing down your desired specifications through available filters, irrespective of whether it is a sedan car or a five-seat family car. If you need a vehicle unavailable on the website, you can add it to the wishlist to get an alert in the future when added to the website.

Visit to A Car Dealership

So, you have decided on the car and selected a trusted dealership during your research. Before you plan your visit, call to confirm if the vehicle is available and get an appointment. You can also request to test your car through a test drive to check the driving performance of your chosen car. If you are buying your car for the first time, it is good to take your friend along who has experience in car buying.

Warranty

If you are buying a new car, there will be a warranty of 2 years (Gewährleistung) whereas a warranty of 1 year is available for used cars if you are buying from a dealership. There’s no warranty if you are buying from a private seller. If the dealership sells a vehicle on someone else’s behalf, you will not get any warranty. Warranty is always beneficial. If your car has some issue, your seller will fix it, but the warranty does not include normal wear or oil changes. Before you sign your purchase documents and make a final deal, read all documents to know the warranty duration. If the warranty is not mentioned in the contract, do not purchase.

Extended Guarantee

Discuss with your dealer if he offers an extended guarantee, usually between one and three years. Remember that you will have to pay the cost, and it will cover defects before taking ownership of the car, such as electrical or technical cover. The labor cost is also added to this guarantee. Depending on the mileage and time period, 30% to 100% of the material cost is also covered.

Inspection of A Used Car

• Identify the car’s age through its first registration (Erstzulassung – EZ)
• Choose a vehicle with less number of former owners (Vorbesitzer)
• Check the mileage (Kilometerstand) which is an important benchmark
• Check the fuel type (Kraftstoffart) it requires – Diesel or Petrol (Benzin)
• Check the horsepower Engine Power (Leistung)
• Identify the transmission (Getriebe) if the car is automatic (Automatik) or manual gearing (Schaltgetriebe).
• Get an accident-free car (Unfallfrei)
• Prefer a car with a full maintenance record (Checkheft gepflegt)
• Get a vehicle that has at least one year in its upcoming date of periodic technical inspection (Hauptuntersuchung – HU)
• Ensure the car’s air conditioning (Klimaanlage) is installed or not.
• See the emission sticker (Umweltplakete) as the cars with green emission stickers (Euro 4) can enter the environmental zones.

TÜV Inspection

After generic inspection, cars should pass an inspection test (HU Hauptuntersuchung or TUV) every two years. TUV is a famous institution in Germany that inspects vehicles. If the car passes the test, get a sticker to paste it on your license plate. The cost of TUV inspection is around €70 to €150. This test is conducted by workshops certified by TUV, Dekra, GTÜ, or KÜS. Your dealer is responsible for TUV inspection.

Pay Value Added Tax

If you buy your car from a dealership, you will pay a value-added tax, which is included in the car price. Buying your vehicle from a private seller means you do not need to pay VAT. If the car dealership sells a car on behalf of someone else, you will not pay any VAT.

Final Buying

So, your car is all set, and you are ready to buy it. Ensure that the vehicle passes the TUV inspection test. Then, make a down payment and sign a binding order to make a deal. Register and insure your vehicle before you drive it off. You can ask your dealer if he can help with the free registration or for a fee.

Appointment for Registering The Car

Visit the vehicle registration office (Kfz-Zulassungsstelle) on the day of the appointment.  After that, you will get the registration papers (Zulassungsbescheinigung I and Zulassungsbescheinigung II) and the TÜV document.

Registration certificate, part 1 (Zulassungsbescheinigung Teil I)

This must be kept in your pocket while driving your car.

Registration certificate, part 2 (Zulassungsbescheinigung Teil II)

You can keep it at home. For used cars, it is Fahrzeugbrief whereas the new version of this document is Zulassungsbescheinigung Teil II.

Car Insurance in Germany

Once your car is registered, show your registration documents to the insurance provider so they can insure your vehicle. When you register your car, you must ask for an eVB number. Compare the insurance rates at Tarifcheck or Verivox, but if you do not know German, Getsafe is a suitable option for you because of their English support. Three types of car insurance are:

• Car Liability (Kfz-Haftpflichtversicherung)
• Partial Cover (Teilkasko)
• Comprehensive Cover (Vollkasko)

Buying License Plates

You can buy your new license plates online, saving time, effort, and money. The first letter on your license plate must be an acronym stating your city of registration. If you have specific requirements, you can buy your plates physically. Many manufacturers manufacture license plates in Germany.

Seasonal License Plates (Saisonkennzeichen)

Seasoned license plates can only be used during specific months written on the license plates. You can drive your car with these seasoned plates in those particular months, but you cannot drive and park in the streets other than those months. These plates are comparatively cheaper as you only pay taxes and insurance for a few selected months.

Registering The Car Physically

Take your required documents and license plate with you on the day of the appointment. Buy Umweltplakete from the clerk in the registration office rather than buying online to save money. The clerk will print the Fahrzeugschein (a.k.a. Zulassungsbescheinigung I) and write your name to the Fahrzeugbrief (a.k.a. Zulassungsbescheinigung II). They will also paste a sticker of your city and the HU/TÜV sticker on your license plates.

Registering The Car Online

If you are in Berlin, online vehicle registration is available. This applies to both new and used vehicles. The fees for online registration are the same as those for in-person registration. The previous registration documents must contain an eID if you are buying a used car. If the eID is not present, the vehicle cannot be registered online. If you register a car in Brandenburg, you cannot register online there.

Pick Up Your Car

Now, tell your dealer you are ready to pick up your car. Your dealer will prepare the required documents and complete the paperwork before you visit to collect the vehicle. The documents include the Kaufvertrag (purchase contract), guarantee, and maintenance record.

Process Timeline From Buying to Picking A Car

The duration of the process from buying to collecting your car varies and depends on whether the vehicle has a valid TÜV/HU and the registration process.

Buying A Car In Germany Online

If you are fond of online shopping, you can buy your car online through an online German website, “Instamotion” which will send you a ready-to-drive registered car. You can buy a used car of a maximum of five years of age and maximum mileage of 100,000 km. quality check, inspection, and registration, the online seller does everything. Instamotion offers a 14-day 100% money-back guarantee if you are unsatisfied with your car.

Costs to Buy A Car

To buy a car in Germany, you must have €1000 extra, regardless of the actual car price. This includes registration, tax payments, insurance, and other expenses. Here is the cost breakdown;

Car Prices

The average price of a new car in Germany is approximately €36,500, whereas the cost of a used car is €19,000. The price can vary depending on several factors, such as model, specifications, dealer, etc.

Car Taxes

Everyone buying a car must pay tax depending on the car’s make, model, and engine. The average tax for a new vehicle is €200 and you can calculate the tax using a tax calculator in English. Share your bank details at the registration office to pay the tax amount directly from your bank account.

Car Insurance

Car insurance is necessary and costs you around €258 a year. To add a partial cover (Teilkasko), pay an average of €89; for full cover, pay an average of €329. The cost of full comprehensive car insurance is €587 per year.

Car Registration

Buy the license plates and pay the registration fee, emission sticker, and TUV inspection to register your car. This price may vary from city to city and provider to provider.

Final Thoughts

So, this is it. With all the information in the article, buy your car and have a safe driving experience throughout Germany. Whether to drive your vehicle or the German Autobahn is your choice.