buying a car

How to Buy a Car in Germany: A Complete Step-by-Step Guide (2025)

Thinking about buying a car in Germany? Whether you’re a resident or expat, this comprehensive guide covers everything you need to know – from legal requirements and necessary documents to the best places to buy new or used cars. Learn about registration, insurance, average car prices, and common costs like taxes, TÜV inspections, and license plates. Understand the pros and cons of dealerships, private sellers, and online platforms. We also explain how to check a used car’s condition, what warranties are available, and what paperwork is essential. Plus, find out how to import a car, buy online, or save money with seasonal license plates. This up-to-date guide ensures you’re well-prepared for a smooth and legal car purchase in Germany.

Eligibility and Requirements

Who Can Buy a Car in Germany?

Anyone aged 18 or over can legally buy a car in Germany, regardless of their nationality. This means both German citizens and foreign nationals have the same purchasing rights when it comes to acquiring a vehicle. The age requirement is straightforward and applies universally across all car types and price ranges.

Driving License and Residency Requirements

While buying a car has minimal restrictions, driving and registering the vehicle involves additional requirements. To drive the car legally on German roads, you must possess a valid driving license recognized in Germany. Foreign licenses may be accepted initially, but depending on your country of origin and length of stay, you may eventually need to obtain a German driving license.

For vehicle registration, you must be a registered resident in Germany. This means you’ll need official proof of residence, such as a registration certificate (Anmeldebescheinigung) from your local registration office. This residency requirement is crucial for the registration process and cannot be bypassed.

Required Documents and Identification

When purchasing a car, you’ll need several key documents. A valid form of identification, such as a passport or German ID card, is essential. Additionally, you’ll need details of a German bank account for payment purposes and future tax obligations. These requirements ensure proper documentation and facilitate the various administrative processes involved in car ownership.

Types of Cars Available in Germany

New Cars (Neuwagen)

New cars represent the premium option in the German market, though they come with correspondingly high prices. Germany has some of the most expensive new car prices in the European Union. However, new vehicles offer significant advantages including superior reliability, longer life expectancy, and typically come with a comprehensive two-year warranty. The latest safety features, fuel efficiency technologies, and manufacturer support make new cars an attractive option for those prioritizing reliability and cutting-edge features.

Used Cars (Gebrauchtwagen)

Used cars dominate the German automotive market due to their popularity and affordability. The high depreciation rate of new cars in their first few years makes used vehicles an economically sensible choice for many buyers. You can purchase used cars from both dealerships and private sellers, with private sales often offering lower prices but higher risk. The used car market is well-established and regulated, providing numerous options across all price ranges and vehicle types.

One-Year Cars (Jahreswagen)

Jahreswagen represent an excellent middle ground between new and used cars. These vehicles have been used for a maximum of one year, often by dealership employees or as company cars. They’re typically in excellent condition with low mileage and are sold through brand dealerships. The key advantage is avoiding the steep first-year depreciation while still getting a nearly new vehicle with remaining warranty coverage.

Demonstration Cars (Vorführwagen)

Demonstration cars are former showroom models or test drive vehicles used by dealerships to showcase features to potential customers. These cars typically have low mileage and are sold at attractive discounts compared to new vehicles. They often include premium features and options that might be expensive when ordered new, making them an appealing option for buyers seeking luxury features at reduced prices.

Where to Buy a Car in Germany

Dealerships (Autohaus, Gebrauchtwagenhändler)

Car dealerships offer the most secure purchasing experience, whether you’re buying new or used vehicles. Authorized dealerships (Autohaus) represent specific brands and provide comprehensive services including warranties, financing options, and professional assistance with paperwork. Used car dealers (Gebrauchtwagenhändler) specialize in pre-owned vehicles and often provide similar services. The security and professional support make dealerships the preferred choice for many buyers, despite potentially higher prices.

Private Sellers

Private sellers can offer significant cost savings, as they don’t have the overhead costs associated with running a dealership. However, private purchases come with increased risks, as you won’t receive warranties or guarantees that dealerships provide. When buying privately, it’s crucial to use a proper sales contract and ensure you receive all necessary documentation. This option requires more due diligence but can result in substantial savings for knowledgeable buyers.

Online Platforms and Car Brokers

Digital platforms have revolutionized car shopping in Germany. Websites like mobile.de and autoscout24.de are the most popular platforms for finding both new and used cars from dealerships and private sellers. These platforms offer extensive search filters and comparison tools. Some specialized services like Instamotion provide complete online purchasing experiences, including delivery, registration, warranty coverage, and money-back guarantees. Online brokers for new cars can also offer competitive pricing through bulk purchasing arrangements.

The Car Buying Process Step-by-Step

Step 1: Finding the Right Car

Begin your search using online platforms or by visiting dealerships directly. Online platforms offer sophisticated filtering options based on mileage, first registration date, number of previous owners, fuel type, engine power, transmission type, maintenance records, air conditioning, and emission sticker status. This allows you to narrow down options before physical inspections, saving time and ensuring you focus on vehicles that meet your specific requirements.

Step 2: Visiting the Seller or Dealership

Once you’ve identified potential vehicles, contact the seller to confirm availability and schedule an appointment. This step is crucial for conducting a thorough inspection and test drive. When examining used cars, consider bringing a knowledgeable friend or hiring an independent inspector to identify potential issues. The physical inspection allows you to verify the online listing details and assess the vehicle’s actual condition.

Step 3: Negotiating the Price

Price negotiations in Germany differ from many other countries. German car dealers often operate with fixed pricing, meaning the advertised price is typically the final price. However, you may secure modest discounts for cash payments or during certain promotional periods. Private sellers generally offer more negotiation flexibility, but approach discussions respectfully and based on factual vehicle assessments.

Step 4: Signing the Contract and Making Payment

Upon agreeing to purchase, you’ll sign a binding sales contract (Kaufvertrag) and typically make a down payment. For private sales, insist on a comprehensive written contract detailing the vehicle’s condition and any known defects. This legal document protects both parties and provides recourse if issues arise later. Ensure all terms are clearly stated before signing.

Step 5: Getting Car Insurance and eVB Number

Car insurance is mandatory before you can register your vehicle. Contact insurance providers to obtain quotes and select appropriate coverage. Once you’ve chosen an insurer, they’ll provide an eVB number (elektronische Versicherungsbestätigung), which serves as proof of insurance for the registration process. This electronic confirmation can usually be obtained quickly online.

Step 6: Obtaining and Reserving License Plates

You can reserve and purchase license plates online or from manufacturers located near registration offices. German license plates are linked to the city where you’re registered, so the prefix will reflect your registered location. Planning this step in advance can streamline the registration process and ensure plate availability.

Step 7: Registering the Vehicle

Schedule an appointment at your local vehicle registration office (Kfz-Zulassungsstelle). You must be registered in that city to use their services. Some areas offer online registration through the i-Car platform, while many dealerships provide registration services for an additional fee. The registration process requires various documents and forms, which must be completed accurately.

Step 8: Picking Up the Car and Final Documents

After successful registration, you can collect your vehicle. The dealer or seller should provide complete documentation including the purchase contract, maintenance records, invoice, owner’s manual, and all keys. Verify that all promised items are included and that the vehicle matches the purchase agreement before finalizing the transaction.

Documents Required When Buying a Car

Documents Needed for Purchase

For the actual purchase, you’ll need valid identification (passport or German ID), proof of German residence, a valid driving license if you plan to drive immediately, and German bank account details for payment processing. These documents establish your identity, legal status, and ability to complete the financial transaction.

Documents to Receive or Verify

When completing the purchase, ensure you receive the sales contract (Kaufvertrag), both parts of the registration certificate (Zulassungsbescheinigung Teil I and II), maintenance records (Checkheft), the latest TÜV/HU certificate, EU Certificate of Conformity for new or imported vehicles, owner’s manual, and all keys including spares. These documents prove ownership and provide essential vehicle history information.

Documents Needed for Vehicle Registration

The registration process requires your valid ID or passport, proof of German residence, the vehicle’s registration certificate Part 2 (proof of ownership), EU Certificate of Conformity for new cars, details of the latest TÜV/HU inspection for used vehicles, your eVB number proving insurance coverage, completed vehicle registration forms, and a filled direct debit authorization for vehicle tax collection.

What to Check When Buying a Used Car

Mileage, Registration Date, and Previous Owners

Pay careful attention to the odometer reading (Kilometerstand), as 100,000 kilometers represents an important benchmark in vehicle evaluation. Check the first registration date (Erstzulassung) to determine the car’s actual age, which affects value and remaining useful life. The number of previous owners (Vorbesitzer) can indicate how well the vehicle has been maintained, with fewer owners generally being preferable.

TÜV/HU Status and Inspection History

The periodic technical inspection (Hauptuntersuchung or TÜV) is required every two years for most vehicles, with new cars having their first inspection after three years. Look for cars with at least one year remaining until the next inspection, or ideally request a fresh inspection upon purchase. Vehicles with overdue inspections are significantly cheaper but may require costly repairs to pass inspection.

Maintenance Record and Accident History

A complete maintenance record (Checkheft gepflegt) is essential for used car purchases. Vehicles without proper maintenance documentation should raise immediate concerns about their care and condition. Additionally, search for accident-free vehicles (Unfallfrei) and consider running a VIN check to verify the accident history. Previous accidents can significantly impact both safety and resale value.

Transmission Type and Emissions Sticker

Most German cars feature manual transmissions (Schaltgetriebe), so specify your preference if you require automatic transmission (Automatik). Additionally, check for the emissions sticker (Umweltplakette), as many German cities have environmental zones requiring specific emission standards. A green sticker (Euro 4 standard) is typically required for city center access.

Air Conditioning and Other Equipment

Air conditioning (Klimaanlage) is not standard in all German vehicles, particularly older or economy models. Verify the presence and functionality of air conditioning and other desired features during your inspection. This is particularly important if you’re accustomed to vehicles where such features are standard equipment.

Costs of Buying and Owning a Car in Germany

Average Car Prices: New vs. Used

Current market data shows new cars averaging around €44,630, while used cars average approximately €18,800. These figures represent significant investments, and buyers should budget accordingly. The substantial price difference between new and used vehicles explains the popularity of the used car market among German consumers.

VAT, Vehicle Tax, and Registration Costs

When purchasing from a dealership, you’ll pay 19% VAT, which is typically included in the advertised price. Private sales don’t include VAT. Annual vehicle tax (Kraftfahrzeugsteuer) is calculated based on engine size and CO2 emissions, typically ranging from €100-€200 per year. Registration costs approximately €86, including fees and license plates, though dealer registration services cost around €150.

Car Insurance Options and Costs

Mandatory liability insurance (Kfz-Haftpflichtversicherung) averages around €258 annually. Optional partial coverage (Teilkasko) adds approximately €89, while comprehensive coverage (Vollkasko) can add €329 or more. Full comprehensive coverage totals around €587 per year on average. Insurance represents one of the largest ongoing ownership costs after the initial purchase price.

TÜV Inspections and Additional Fees

Regular TÜV/HU inspections cost between €70-€150, typically around €100-€120 every two years. Emissions stickers cost €6-€20, with cheaper options available at registration offices. These recurring costs should be factored into your long-term budget planning.

Optional Services: Automobile Clubs, Dealer Registration, etc.

Automobile club memberships, such as ADAC, start at €54 per year and provide breakdown coverage and roadside assistance. Dealer registration services, while convenient, typically cost around €150. These optional services can enhance your ownership experience but should be evaluated based on your specific needs and usage patterns.

Warranty and Guarantee Explained

Legal Warranty from Dealerships

When purchasing a used car from a dealership, German law provides a mandatory one-year warranty (Gewährleistung) covering defects that existed before the purchase. This legal protection cannot be waived by dealers, and you should avoid any seller attempting to exclude this warranty. This coverage provides important peace of mind for used car purchases.

Optional Guarantees and Coverage Differences

Dealerships may offer additional guarantees (Garantie) for 1-3 years, covering defects that appear after purchase. These extended warranties typically cover 100% of labor costs and 30-100% of material costs, depending on the vehicle’s mileage and specific terms. Coverage varies significantly, so carefully review what technical and electrical components are included.

No Warranty When Buying from Private Sellers

Private sellers cannot offer warranties or guarantees, making these purchases inherently riskier. However, German law may consider problems appearing within the first six months as pre-existing conditions, potentially allowing legal recourse for compensation. This legal protection is limited and difficult to enforce, emphasizing the importance of thorough pre-purchase inspections.

Other Important Aspects of Buying a Car in Germany

Typical Timeline from Purchase to Pickup

The timeline from purchase to driving your new car depends on several factors, including TÜV/HU status and registration appointment availability. With valid inspections and efficient processing, the entire process can be completed within one week. However, expired inspections or busy registration offices may extend this timeline significantly.

Buying a Car Online: Pros and Cons

Online car purchasing offers convenience and often includes quality checks, warranties, and money-back guarantees (typically 14 days). Many services provide delivery of already-registered, ready-to-drive vehicles. However, you sacrifice the ability to physically inspect and test drive the vehicle before purchase, and may face language barriers with German paperwork and processes.

Importing a Car into Germany

Importing vehicles is possible but involves varying regulations and taxes depending on the country of origin. EU/EFTA imports face different requirements than vehicles from outside these regions. The process requires customs procedures, proper documentation, and eventual German registration. Existing foreign plates may be used temporarily for up to 12 months if properly insured and documented.

Mandatory Equipment to Keep in the Car

German law requires specific safety equipment in all vehicles: a first aid kit, red warning triangle, reflective safety jackets (one per person), headlight converters for international travel, and an EU accident report form. Motorcycles don’t require emissions stickers, while scooters under 50cc need only insurance plates rather than full registration.

Environmental Zones and Emissions Stickers

Many German cities maintain environmental zones (Umweltzone) restricting vehicle access based on emission standards. Most zones require a green emissions sticker for entry, which can be purchased at registration offices (€6) or gas stations/garages (€20). Plan for this requirement if you’ll be driving in urban areas.

Seasonal License Plates for Cost Savings

Seasonal license plates (Saisonkennzeichen) allow vehicle operation only during specified months, reducing insurance and tax costs for recreational vehicles or those used seasonally. This option can provide significant savings for vehicles like motorcycles, convertibles, or vacation cars that aren’t used year-round.

Financing, Leasing, and Credit Considerations

Vehicle financing is available through banks, automobile clubs, and dealerships, but requires good credit history and stable employment in Germany. Leasing provides an alternative to ownership, offering newer vehicles for monthly payments without the responsibilities of ownership. Consider your long-term plans and financial situation when choosing between purchasing, financing, and leasing options.

Regular Maintenance and TÜV Responsibilities

Proper maintenance is crucial for vehicle longevity and safety. Adhere to manufacturer-recommended service schedules and keep detailed records. The TÜV inspection serves as a comprehensive vehicle health check and is mandatory for road legal operation. Plan for these recurring maintenance costs and requirements.

How to Sell Your Car in Germany

When it’s time to sell, you can use dealerships, online platforms, classified advertisements, or private sales. You’ll need both parts of the registration certificate and current TÜV documentation. Online valuation tools can help determine fair market value. Consider the trade-offs between convenience (dealership trade-in) and maximum return (private sale) based on your priorities and timeline.