Cars are generally more expensive in Spain than in most other EU countries. They do however tend to hold their re-sale value better. In order to buy a Spanish-registered car you need a residencia, (residence card) or an NIE number, an escritua (deed) or rental contract for a Spanish property, or an certificado de empadronamiento (certificate of residence) in a Spanish community.

Buying a second hand car

Secondhand cars in Spain are often more expensive than in many other EU countries, as cars hold their value better. It often pays to buy a used car that's about two years old, as depreciation in the first one or two years is considerable. Ex-rental cars, are good value. Note, however, that older cars in Spain (outside of their warranty period) aren't always well maintained. You are much better to buy from a reputable dealer, even if you pay a bit more, and obtain a warranty, rather than pick an 'unknown' from the local paper. If you intend to buy a used car in Spain, whether privately or from a dealer, make sure that of the following:

The car has a current ITV test certificate, if applicable;
That the chassis number tallies with the registration document, which should be in the name of the seller when a car is purchased privately.
That you receive a `transfer of ownership' (transferencia) form from the seller. The form is available from the provincial traffic department.
Car dealers usually give warranties on used cars of from three to 12 months, depending on the age of the car and the particular model.

When you buy a secondhand car in Spain you must obtain the following documents from the seller;

1. Registration document (permiso de circulaci?n). The Permiso de Circulacion is the Spanish equivalent of the English Registration document and owner's details have to be changed when vehicles change hands. However, this is a far more complicated process than in the U.K.

2. The ITV test certificate plus the technical sheet 'Ficha Tecnica' and a photocopy.

3. The road tax receipt and a photocopy.

4. A receipt for the payment of transfer tax (4%).

You have 15 days to register the vehicle in your name.

VERY IMPORTANT ADVICE ON PURCHASING SECOND HAND CARS
It is vital that a history check is made on the vehicle before you purchase it. This is the Spanish equivalent to an HPI check in England.
This check is important in Spain because just like property, previous owners debts can be put on the car. This can include unpaid social security, loans and taxes. The debts stay with the car, so it is now the responsibility of the new owner to clear the debts.
If you have any concerns regarding a Spanish registered vehicle you may have purchased privately, there are qualified companies that would be happy to check out the history for you, and offer HPI checks on English registered vehicles.

Buying a new car

Spain is generally a buyers' market for new cars and you should be able to find a bargain although some cars are more expensive in Spain than in other EU countries. The taxes on new cars are higher in Spain than in any other EU country due to the registration tax of 12 per cent, which is charged in addition to VAT (IVA) at 16 percent.

Buying a new car for cash
When you buy a new car from a garage, you will need to supply them with a copy of your national insurance number form which was given to you by the police station. You will also need to produce evidence of your address such as a rental contract or house deeds etc. The garage will undertake all the registration process with the Trafico department. This process usually takes two working days. A new car does not need an ITV (MOT) for four years. Your new car should come with one year's road tax paid to the local council. Check this. On collection of your new car you will be given the registration document. Keep this safe; a replacement will be expensive and very time consuming. DO NOT KEEP THE ORIGINAL IN THE CAR. Take the original and a photocopy to the Town Hall and ask them to stamp the photocopy as a true copy of the original. Keep the copy in the car and save the original at home. You should also carry your insurance certificate with this, as well as a receipt for your premium paid.

Financing your purchase

Currently there are very few companies that will give finance to a non-resident, although this may change with the abolition of the residence permit. Most new car dealers offer finance on purchases.

It is possible to buy a new tax-free car in another EU country, such as from the factory of a European manufacturer or from an exporter and personally import it into Spain. Before importing a car from another country, you should ensure that its manufactured to Spanish specifications, or you may encounter problems getting it through the homologation inspection.

When you drive in Spain you must ensure that certain documents are carried with you.