How to Buy a Car in Germany: A Complete Guide for Foreigners and Newcomers
Buying a car in Germany is a milestone for many expats and newcomers — a sign of independence, freedom of movement, and integration into local life. While public transport in German cities is excellent, owning a car becomes essential for commuting to remote work locations, transporting a family, or simply exploring beyond city borders. That said, the process isn’t always straightforward.
From choosing between new and used cars to understanding registration requirements and insurance rules, this guide provides everything you need to buy a car in Germany without stress or surprises.
Buying a Car in Germany: The Requirements
To legally buy and register a car in Germany, certain conditions must be met. Regardless of whether you’re purchasing from a dealership or private seller, the following requirements apply:
- You must be at least 18 years old (legal driving age in Germany)
- A valid passport or ID card is necessary
- Proof of residence (Anmeldung from your Bürgeramt)
- A German bank account for payments, taxes, and insurance
- A valid driver’s license (EU or converted to German if from outside the EU)
These documents are not only necessary to buy a car, but also to insure it and complete vehicle registration (Zulassung).
Can a Foreigner Buy a Car in Germany?
Yes — foreigners can legally buy cars in Germany. However, while you don’t need German citizenship or permanent residency, you must be officially registered at a German address and hold a valid residence permit if you’re from a non-EU country. Without an Anmeldung, you won’t be able to register the vehicle, which means you can’t legally drive it.
Expats from outside the EU may also need to convert their driver’s license after six months of residence, depending on their country of origin.
Cars in Germany
Germany has a rich automotive culture, being home to brands like Volkswagen, BMW, Mercedes-Benz, and Audi. It’s no surprise that owning a car is common — even in cities with robust transit systems. As of the latest data, there are more than 48 million registered vehicles on German roads.
There are several types of vehicles available to buy, depending on your budget, usage needs, and how long you plan to stay in the country.
- Neuwagen (New Cars): Never owned or registered before
- Gebrauchtwagen (Used Cars): Previously owned, varying in age and condition
- Jahreswagen (One-Year Cars): Typically driven by dealership employees, lightly used
- Vorführwagen (Demo Cars): Used for test drives, often under 10,000 km
Your choice will depend on how much you want to spend, whether you prioritize warranty coverage, and how long you plan to keep the car.
Buying a New Car in Germany
Car Dealers in Germany
Most new cars in Germany are sold through franchise dealerships (Autohaus). These dealerships represent one or more car brands and provide full service — from test drives and vehicle configuration to financing options and warranty handling.
Top features of German car dealerships:
- Trained staff fluent in English in most large cities
- Test drive scheduling
- Support with registration paperwork
- Warranty registration and servicing
You can start your search online via manufacturer websites or platforms like mobile.de and AutoScout24, which aggregate listings across dealerships nationwide.
Warranties and Guarantees
Under German law, every new car comes with a two-year statutory warranty (Gewährleistung). Many manufacturers offer an extended manufacturer’s guarantee ranging from 3 to 7 years, either included or at an additional cost.
These warranties cover:
- Manufacturing defects
- Major mechanical failures
- Replacement parts and labor
Buying from a dealership ensures peace of mind, even if the price is higher compared to imports or unregistered models.
Financing a Car in Germany
Most people don’t pay upfront for a new car. Financing is a common option and is available through:
- The dealership’s own bank
- Third-party banks
- Personal loans (Kredit)
To qualify, expats typically need:
- A German bank account
- A valid residence permit
- Proof of income
- A SCHUFA credit score (this can be a hurdle for newcomers)
Expect financing terms from 24 to 60 months, and rates between 3–6% APR, depending on your creditworthiness and whether a down payment is made.
Used Cars in Germany
Germany’s used car market is one of the largest in Europe. Vehicles are generally well-maintained due to strict TÜV inspections and transparent service histories. However, buyers must still remain cautious and informed.
Buying a Used Car from a Private Seller
Buying from private individuals is common and often cheaper. Listings can be found on:
Always meet in person, inspect the car carefully, and request a test drive. Never agree to wire money in advance.
Advantages:
- Lower price
- Room for negotiation
Disadvantages:
- No warranty
- Greater risk without inspection
Used Car Dealers
Many official dealerships and independent traders offer certified pre-owned vehicles that have been inspected and come with limited warranties.
Why consider a dealer:
- One-year legal warranty (required by law)
- Optional extended guarantees
- Paperwork support
You will typically pay 19% VAT on top of the vehicle price if it’s sold through a commercial seller.
Used Car Warranty in Germany
- Dealers must offer a minimum 12-month warranty
- Extended warranties (Garantie) can be purchased additionally
- Private sellers are exempt unless defects were hidden deliberately
What to Look Out for When Buying a Used Car
Mileage
Check the kilometer reading. Cars under 100,000 km are preferred and often more reliable.
Date of First Registration & Previous Owners
The fewer the previous owners and the newer the registration, the better. Cars with multiple past owners may be less reliable.
Date of Next Roadworthiness Inspection (TÜV/HU)
Required every two years. Ask for the latest report. If the car needs inspection soon, it may cost you later.
Sales Contract
Use a standard Kaufvertrag template (ADAC offers one). It should include:
- Seller’s info
- Vehicle condition
- Known issues
- Signatures
Proper Paperwork
Request the following:
- Registration Certificate Part I & II
- TÜV report
- Service booklet
- Insurance history
- All keys
If anything is missing, walk away or reduce your offer significantly.
How To Buy A Car in Germany?
The car buying process in Germany is highly structured, and each step must be done in order to avoid legal or administrative issues. Here’s a more practical breakdown of how to go from browsing to driving:
Step 1: Search for the Right Car
Start your search on trusted websites:
- mobile.de or AutoScout24
- Official manufacturer sites if buying new (e.g., VW, BMW, Mercedes)
Use filters wisely:
- Budget: Set your max price to avoid hidden financing
- Fuel type: Petrol, diesel, electric, hybrid
- Mileage: Lower mileage = longer lifespan, higher price
- First registration date: Prefer cars registered within the last 5 years
- Location: Start local to avoid long-distance viewings
Set alerts for cars that match your criteria. Many platforms let you save searches and receive updates.
Step 2: Contact the Seller
Once you find a car that fits your needs:
- Use the contact form or call the seller directly
- Ask for details about the service history, TÜV validity, and accident records
- For dealers, request the warranty terms and any included inspection report
For private sellers:
- Ask for the vehicle documents upfront: registration certificates, TÜV report, maintenance book
Step 3: Book a Viewing and Test Drive
Arrange an in-person visit to inspect the car. Bring:
- A valid driver’s license
- A friend who speaks German (if you’re not fluent)
- Optional: A mechanic for used cars (ADAC can provide inspection services)
During the test drive, check:
- How the engine starts (cold start issues?)
- Acceleration and braking response
- Steering alignment and suspension
- Dashboard warning lights
- Air conditioning, infotainment system, and electronics
Ask to see the car cold (not pre-warmed), and test it at both city and highway speeds if possible.
Step 4: Negotiate and Make a Down Payment
If you’re satisfied, discuss the price. In Germany:
- Private sellers are more flexible than dealers
- Dealers often include fees (e.g., preparation, documentation)
Once a price is agreed:
- Sign a purchase contract (Kaufvertrag). Use a standard template (ADAC offers them)
- Never pay the full amount in cash unless it’s a dealership
- For private sales, transfer money securely and always receive a written receipt
Only proceed if the seller can provide:
- Registration certificate parts I & II
- Valid TÜV inspection
- Service booklet and maintenance records
- Invoice or proof of sale
Next step: arrange insurance and registration — which will be covered in the following sections.
Make a Down Payment
Once satisfied, you may be asked to sign a purchase contract and make a deposit. For private sales, be cautious and pay only after verifying ownership documents.
Get an eVB Number
Before registering your car, you’ll need an eVB (elektronische Versicherungsbestätigung) — an electronic insurance confirmation number. You get this after purchasing car insurance.
You must have:
- Liability coverage (Haftpflicht)
- Optional: Teilkasko or Vollkasko coverage
Useful Links for Drivers in Germany
Car Insurance
Mandatory liability insurance (Haftpflicht) is a must. Use portals like:
- Check24
- Verivox
- HUK24
Motorcycle Insurance
Similar process, with slightly different premium structures. eVB numbers also apply.
Car Leasing Companies
If you prefer not to own, consider:
- Sixt Leasing
- ViveLaCar
- VW Leasing
Car Subscription Services
For flexible terms without ownership:
- FINN
- Cluno
- Like2Drive
Get Your License Plates
Order online or visit a plate shop near your local registration office. Standard, personalized, and environmental plates are available.
Register Your Car
Visit your local Kfz-Zulassungsstelle with:
- ID and residence permit
- Proof of insurance (eVB number)
- Purchase contract and vehicle documents
- Roadworthiness certificate (for used cars)
You’ll also get your Umweltplakette (emission sticker).
Pick the Car Up
Once registered, you can legally drive your new car. Dealers can also deliver the car with documents and plates already attached.
Buying a Car Online in Germany
Online platforms now offer complete buying services, from selection to registration and home delivery.
Benefits:
- Fast, digital paperwork
- eVB and registration included
- 14-day return policies (in most cases)
Limitations:
- No physical test drive
- Some platforms are German-only
- Trust heavily in photos and reviews
Car Prices in Germany
As of recent market data:
- New car average: €44,000
- Used car average: €18,800
Other expenses to factor in:
- Vehicle tax (engine size + CO2 emissions)
- Insurance premiums
- TÜV and inspections
- Fuel, repairs, parking
Sell Your Car in Germany
Options to sell:
- Dealership trade-in
- Online platforms (mobile.de, AutoScout24)
- Classified ads in newspapers or social groups
Documents required:
- Registration certificate parts I & II
- Latest TÜV report
You must deregister your car (Abmeldung) at the registration office or online via i-Kfz if your federal state supports it.
Buying a Car vs Car Leasing
Both options have pros and cons:
Buying Pros:
- Full ownership
- No mileage restrictions
- Long-term value
Buying Cons:
- High upfront cost
- Depreciation
- Responsible for all maintenance
Leasing Pros:
- Lower monthly payments
- Drive new models frequently
- Maintenance often included
Leasing Cons:
- No ownership
- Mileage caps and penalties
- Restrictions on modifications
Choose based on:
- Length of stay in Germany
- Driving frequency
- Budget flexibility
Buying a car in Germany isn’t difficult — but it’s highly procedural. By understanding the legal requirements, knowing where to look, and checking paperwork thoroughly, you’ll protect yourself from scams and unnecessary costs.
Whether you’re purchasing a new car with a warranty, a well-maintained used car, or even going digital with an online platform, Germany offers one of Europe’s most trusted and regulated car markets.
