PURCHASING A NEW CAR (EL COCHE)

The market for purchasing new cars is similar across Europe. Large dealers sell new and some secondhand cars at competitive prices with a good after-sales service. Since all dealerships are monitored by car manufacturers their service is efficient, well organised and, above all, reputable.

Given Spain’s geographical location and the presence of large car manufacturing plants in Valencia, the popular brands are Seat and Ford. French products come next. Quality German cars are always popular and the market penetration of small Far Eastern cars is high. New cars are more expensive in Spain than in many other EU countries but they depreciate at a slower rate. Spanish-made cars are generally cheaper than imported cars due to tax differentials.

When purchasing either a new, or secondhand, car documentation is necessary. Some of the following is certainly asked for:

• an NIF;
• a residencia or passport;
• a copy of an escritura for a home owned in Spain or a property rental contract of one year’s duration;
• a certificado de empadronamiento;
• a recognised driving licence, which in the case of a non-resident should be an International Licence.

Cost of a new car

Details of the cost of a small to medium sized family diesel estate car are given below. The normal specification for quotation includes radio, air conditioning and metallic paint plus of course the engine type. Quotations are always given for a total cost to include all taxes and charges. Registration tax can vary according to the engine type and size – if the engine is less than 1600 cc or a diesel under 2000 cc the tax is seven per cent, over that the tax is 12 per cent. When buying a new car from a dealer it will be registered as part of the deal. The registration certificate is called the permiso de circulacion, which is proof of ownership. Any part exchange is credited separately. In the example below the various taxes and fees account for 25 per cent of a new car’s cost. Payment of a car may be phased, not by hire purchase but by a system of letras (bill of exchange), details of which are outlined in Chapter 4.

Basic list price	14,776€
Special offer discount	1,300€
Net cost	13,476€
IVA at l6%	2,155€
Total net cost	15,631€
Extra on road charges
Impuesto de matriculation 7% (registration tax)	979€
Matriculation (registration) certificate	260€
Seguridad mechanica (extra guarantee)	240€
Impuesto municipal (road tax for one year)	80€
Subtotal	1,559€
TOTAL COST	17,190€

PURCHASING A USED CAR

Regrettably the secondhand car market does not enjoy a good reputation, with the usual unsavoury dealers in evidence, some of whom are British. Fortunately the quality of a modern secondhand car is high. It is price, poor administration, lack of customer service and dishonesty which gives this market its poor reputation. The Spanish market for secondhand cars is unusual as a large number of year-old rental cars, with relatively low mileage, are sold through secondhand outlets. Trade-ins from new sales dealerships are also sold through second hand outlets. Again, when buying a used car from a dealer, registration will form part of the deal.

There is yet another market for used cars – those sold through small ads in weekly newspapers. For first-time buyers in Spain the advice is to tread carefully. The risk of a poor product or incorrect paperwork is too great. A simple agreement should be drawn up to sell a car privately. It should contain factual details of the buyer, the seller, and details of the car, price and form of payment, the date and appropriate signatures. This is good practice. A proof of sale should be stamped at Jefatura Provincial de Trafico to exempt the seller from future fines, accidents or taxes which the buyer may incur.

CAR REGISTRATION

Plates

Spanish registration plates consist of four digits followed by three letters. It is no longer possible to tell where the car is from, or its age, from the number plate. However, there are still many cars on the road with an old style registration plate which consists of one or two letters denoting the province where the vehicle is registered followed by four digits and two more letters indicating the age of the car.

The original registration remains permanently with a car unless it is re-registered. If buying a secondhand car in Spain, it’s best to buy one with the new style registration or one registered in the province where you live.

The vehicle registration document is in two parts. One is for details of the car and one for details of the owner. The details of the car do not alter, whereas the section giving details of the owner will each time there is a change.

Transfer of ownership

When a secondhand car is purchased from a private individual it will need to be registered within ten days of purchase. When selling a car privately it is important to ensure the transfer is completed correctly by the new owner. Rather like debts on a property, as long as the previous owner is still registered they are liable for any parking tickets, road tax and accident claims.

It is a procedure for which many people use a gestor as a visit to a provincial capital and the infamous Jefatura Provincial de Trafico office is necessary. This Spanish department has a reputation for being difficult with complex procedures. It is the worst example of Spanish bureaucracy. However if you are selling and wish to ‘do it yourself’ here is how. Obtain a form entitled Notification de Transferencia de Vehiculos from the Jefatura Provincial de Trafico, at the Vehiculos counter. Complete it and present it with the following:

• A mutually signed bill of sale including the price paid, the car’s kilometre reading, the present condition (as seen) without a guarantee (sin garantia).

• The Permiso de Circulation with the transfer of owner’s and the seller’s signature completed.
• The current year’s paid up municipal vehicle tax receipt and a photocopy.
• If appropriate the current Inspectión Tecnica de Vehiculos (ITV).
• A receipt for the payment of vehicle transfer tax, paid to the Hacienda at four per cent of the fiscal value.
• Proof of identity.
• Payment of a fee of around 45€.
• A stamped, self-addressed envelope so that the traffic authorities can send the registration document to the new owner.

Transfer tax

A transfer tax called Impuesto Sobre Transmisiones Patrimoniales y Actos Juridicos Documentados which is four per cent of the fiscal value is levied on the sale of a secondhand car. The fiscal value of a new car is decided by the tax office. The fiscal value is reduced each year until it is ten years old, when it is reduced to ten per cent of the new value. The tax is the responsibility of the buyer, but as the seller actually pays it, most sellers include the tax in the sales price. This tax is declared on form compraventa de vehiculos usados entre particulares obtained from the Hacienda and paid within 30 days of selling to the provincial tax office of the regional government.

Deregistering

Deregistering a car is called baja de matricula. This form is again obtained from Trafico and must have attached a receipt for the current year’s municipal vehicle tax. It can be used when scrapping an old vehicle, or if a vehicle is stolen. As an incentive to encourage scrapping an old car, the government will reduce registration tax by 480€ to 720€ upon buying a new one.