If you want to explore all that Germany has to offer, you may need wheels. Here are the points from A to B of buying a car in Germany.

Let’s face it, buying a car anywhere in the world can be stressful. Especially as an emigrant who recently moved to Germany. If you want to buy a car in Germany, it’s important to know how to find it, what it costs and what else you need to do before you can drive the vehicle.

The country has a rich automotive history and is famous for its autobahns, where your speed is not an issue, but you are not allowed to run out of fuel. However, like anywhere, there are many rules that car owners must follow. Learn about the process of buying and selling a car in Germany. The topics are described below:

Buying a car in Germany

Germany has a strong automotive culture. It is the sixth in the world production of cars and has a network of well-maintained roads throughout the country. Despite excellent public transport, most people still prefer to travel by car and most households own a car. In 2019, there were about 570 cars per 1,000 inhabitants of Germany – a little more than one for every two people and slightly above the EU average.

Given Germany’s sizeable automotive industry, it’s no surprise that buying a car in Germany is quite easy. You can buy new and used cars at dealerships or privately. You can also import certain cars into Germany. However, whether you buy or import, you will need to comply with registration and maintenance regulations. You will also need a valid license to drive in Germany.

Just over 3.6 million new cars were bought in Germany in 2019 – less than 9% of them were electric or other alternative energy sources. Sales fell by 19% in 2020 due to the COVID-19 pandemic, but the market started to recover in early 2021.

Who can buy a car in Germany?

Anyone over the age of 18 can buy a car in Germany – the legal driving age. However, you will need a valid driver’s license to drive it. You will also need a residence permit in Germany to register the vehicle and car insurance arranged before you drive it from the place of purchase. Companies offering car insurance in Germany include DA Direkt.

Buying a new car in Germany

Buying a new car (  der Neuwagen  ) in Germany can be expensive, as new car prices are among the most expensive in the EU. However, the benefits of buying a new model from a reputable dealership include better reliability, longer vehicle life expectancy, and ease of troubleshooting. Many dealerships offer follow-up support and contact garages in the event of a breakdown. All new vehicles must have a two-year warranty (  die Gewährleistung  ).

The main options for buying a new car in Germany are dealerships and online brokers. You will usually need to provide the following before you can take the car away:

  • A valid ID, such as a passport
  • A valid driver’s license
  • Car insurance details
  • Bank details, if the full amount is not paid in cash

Many dealerships also offer to register new cars for customers, in which case you will need to provide proof of residence in Germany. In addition, some German car manufacturers allow you to pick up your new car straight from the factory, popular with big brands such as Volkswagen and BMW.

When you buy a new car, you should get a contract of sale (  der Kaufvertrag  ), registration documents (  die Kfz-Zulassungsbescheinigung  ), owner’s manual, EU certificate of conformity and keys.

Regarding payment, you can pay in full or in installments. You will usually need to pay between 20% and 50% upfront and finance the purchase with a loan from banks or other lenders, including German car clubs and some dealerships. Repayment usually lasts from two to five years. Most dealerships accept cash, and a discount can usually be negotiated.

According to the annual report of the Deutsche Automobil Treuhand (DAT), in 2021 the average price of a new car in Germany was 37,790 euros. The best-selling brands in the country are German: Volkswagen, Mercedes-Benz, BMW and Audi.

Where to buy a new car in Germany

Car dealerships

A car dealership (  das Autohaus)  is usually associated with individual car brands in Germany. For example, you can find dealerships across the country for Volkswagen and Audi vehicles. Many of them sell both new and used cars.

There are many advantages to using a dealership. For example, it is a reputable business associated with the brand, and many dealerships offer follow-up support. You can inspect the car and even take it for a test drive. Dealerships also often prepare initial paperwork, such as registration, and sometimes offer factory pickup.

Many dealerships in Germany also offer a delivery service if you are unable to collect your vehicle from the dealership or factory. However, this involves payment. You can search for car dealerships in Germany on  mobile.de  and  AutoScout24  .

Online car brokers

You can also buy a car online in Germany. A 2016 study found that about 10% of new car sales were online, and 44% of respondents said they were willing to make a purchase online.

The process of buying a new car online is similar to visiting a dealership in terms of general requirements. You will need to submit the necessary documents electronically. This is a convenient and faster way to buy a car, but its disadvantages are that you will not be able to experience the car in person or take a test drive before buying.

Some dealerships sell cars through their website. You can also use online car brokers to find and buy cars in Germany. They include:

Electric cars and hybrids in Germany

Although sales of electric cars and hybrids in Germany have grown rapidly in recent years, Germans are less likely to buy electric cars than their neighbors in France, the Netherlands or the Scandinavian countries. There are currently 600,000 fully electric vehicles on Germany’s roads, and recently electric vehicles accounted for 14% of new car registrations.

There are many reasons to choose an electric car – in addition to the fact that Germany emits less greenhouse gases, it offers subsidies to encourage those who buy new cars to choose an electric model. You can usually buy an electric or hybrid car the same way you buy a petrol or diesel car. Now you can even buy used models. In addition, energy companies such as EnBW offer special rates for charging electric vehicles and supplying from 100% green electricity.

Buying a used car in Germany

In Germany, buying a used car (  der Gebrauchtwagen  ) is a popular and cheaper alternative to spending money on a new model. According to DAT, the used car market in Germany was worth over €103 billion in 2020 alone. However, as with any second-hand purchase, it can be risky and you’ll need to be smart about not paying more than you need to.

You can buy used cars from a German dealership or privately from a seller. Of course, it’s safer to buy from a dealership, and they offer a one-year warranty on used vehicles. They also sell many almost new cars.

When you buy a used car, you provide almost the same information as you would for a new one. However, there are additional documents that you must obtain. It:

  • A bill of sale or contract of sale detailing the condition of the vehicle, including any known defects. A sample contract can be found  here  (in German). It is advisable to look for cars that have a full maintenance or service book (  Scheckheftgepflegt  ).
  • Existing registration documents (  der Fahrzeugschein  )
  • Details of the last Technischer Überwachungsverein  (  TUV ) inspection   if the vehicle is more than three years old.

Appraisal of a used car

You can search for used car prices in Germany by model type, year of manufacture and mileage (  Kilometerstand  ). For example, at We Buy Cars  (  Wirkaufen Dein Auto  ) you can get a basic estimate to your email within minutes. You then have the option to answer a few questions to get a more detailed assessment. 

Alternatively, you can pay to check the vehicle identification number (  Fahrzeugidentificationnummer  – FIN ) to check accident history (  unfallfrei  ), mileage and other details on several sites like  AutoDNA  . Also  read ADAC’s advice  on what to look for when buying a used car in Germany.

Payment options for used cars are almost the same as for new vehicles. The average  price  of used German cars in 2020 was €20,775, and it remained stable compared to 2019.

Where to buy a used car in Germany

Car dealerships

Many brand dealerships in Germany sell both used and new cars. You can also find dealers that sell only used cars or specialize in classic or vintage models.

Search for dealerships on  mobile.de  and  AutoScout24  . Alternatively, you can check the German Yellow Pages (  Gelbe Seiten  ). Buying from a dealer is usually more expensive as you will have to pay an additional 19% VAT on the vehicle. However, it’s generally safer because you’ll get a one-year warranty that covers any existing (but not future) problems. Many dealers also offer a longer warranty (  die  Garantie  ) for a fee. They will also often take care of all the initial paperwork.

Another advantage of shopping at a dealership is that many sell nearly new cars at discounted prices. There are two types:  der  Jahreswagen  (employee car), which are cars bought at a discount by carmakers’ staff and then resold a year later; and  der Vorführwagen  , which are demonstration cars displayed in showrooms and used for test drives.

Buying a used car in Germany online

There are many websites in Germany where you can find and buy used cars. Popular sites include:

The German online car market can be great for finding great deals. However, there are also obvious disadvantages, for example, the impossibility of a test drive of the car or a personal inspection. Also, if you buy online from a private seller, you won’t get any guarantees.

Buying a car in Germany from a private owner

Today, many private sellers use websites and online forums to advertise their cars. However, some still use more traditional routes. Keep an eye out for ads on local bulletin boards or in store windows. You may also hear about a good deal through local networks. You can also find private car dealers through:

  • Car magazines such as  Motor1  or  Auto Bild
  • Advertisements in local or national newspapers
  • Automobile clubs such as  ADAC  or  AvD
  • Used car fairs, usually advertised in magazines, classifieds and online

If you are buying directly from another car owner, make sure you:

  • Use a sales contract or sales contract. See  the template here (in German).
  • Obtain from the seller all the necessary documentation described in the sections above.
  • If you are asked to pay money up front, use an escrow account or other third-party custody service to protect your funds.

Vehicle registration and other documents in Germany

All cars in Germany – new, used or imported – must be registered. If you buy a new car from a dealer, they can register it for you, usually for a fee. Otherwise, you will have to visit your local car registration office (  Zulassungsstelle  ) or register online on the federal government’s new i-Car (  i-Kfz ) platform.

You will need to register your car before you can drive it. If you register through a local office, you will usually need to make an appointment. In addition, you will need the following documentation:

  • Valid ID card
  • Residence permit in Germany (if registering online, you will need an electronic permit)
  • The second part of the registration certificate (  Zulassungsbescheinigung Teil II  ), which is proof of ownership
  • EU certificate of conformity  if you have a new car
  • Details of the last TUV inspection if you bought a used car
  • Car insurance details

You will need to buy number plates for your car unless you purchased a used car with valid number plates. You can purchase them when you register your car or  pre- order them  online at STVA. License plates are tied to the city where you live. If you move to another city in Germany, you will have to  re-register the car  and get new license plates.

When you register the car in your name, you will receive a sticker on your number plate. Registration is valid until you sell the car, move to another city or  deregister  it.

Paperwork and documentation for storage in the car

You should always have the following:

  • The first part of your registration certificate (  Zulassungsbescheinigung Teil I  ) contains your name and address and confirms that you are the owner of the registered vehicle.
  • Car insurance certificate.
  • An emission sticker (  Umweltplakette  ) that you place in the car window. There are three levels of stickers (red, yellow, green) that refer to the level of pollution of your vehicle. Many German cities are now ecological zones (  Umweltzone  ) and vehicles need a green (class 4) badge to enter.
  • Information about the time of the next TUV inspection. This is printed on your license plates. All cars in Germany must pass a technical inspection at the age of three and every two years thereafter.

You should also make sure that you always have your driving license with you when driving in Germany.

The cost of a car in Germany

In addition to the actual purchase price, when you buy a car in Germany, you will have to consider the following fees:

  • Car insurance  – can range from €100 to €1,000 per year depending on the vehicle and type of insurance. According to the German Insurance Association  (GDV), the average annual costs in 2021 were €254 for third parties and €324 for comprehensive insurance.
  • Tax  – There is no road tax in Germany, but you must pay an annual vehicle tax (  Kraftfahrzeugsteuer  ) based on engine capacity and CO2 emissions. This is usually around 100-130 euros per year. You can calculate the tax rate  here  (in German).
  • Registration  – Costs are usually around €30 for registration, €15 to €40 for license plates and €6 to €20 for an emissions sticker.
  • Fuel costs  . If you have a car that runs on oil, fuel will cost €1.84 per liter for petrol and €1.79 per liter for diesel in November 2023.
  • Maintenance costs  are approximately €100-€120 every two years for a TUV inspection.

In addition, these are general maintenance costs, parking costs and car membership fees. In general, you can spend several thousand euros per year to drive as a regular driver in Germany.

Import of a car to Germany

The procedure for importing a car into Germany depends on where the car comes from. Cars imported from EU/EFTA countries are exempt from paying import duty, but you will need to pay 19% VAT on new cars and any used cars that have been owned for less than six months or less than 6,000km. However, you can claim this payment back if you have already paid VAT on the car at the time of purchase.

Cars imported from outside the EU/EFTA are subject to 10% import duty plus 19% VAT. However, you can claim an exemption if the following conditions apply:

  • You have owned the car for at least six months.
  • You have a residence permit in Germany and have not lived in Germany for at least 12 months.
  • The car remains in your possession for at least 12 months.

You need to import through  German customs  and have the following documents:

  • Owner’s passport or valid ID
  • Certificate of Conformity if imported from the EU/EFTA (or equivalent safety certificate if from outside the EU/EFTA)
  • Proof of ownership, such as a sales contract or existing registration documents
  • Valid car insurance
  • Confirmation that the vehicle will undergo a TUV inspection if it is more than three years old

You will also need to register the imported car. However, you can use your existing registration documents and number plates for a maximum of twelve months in Germany, as long as they are translated into German, your car is fully insured and it has passed customs control.

If you are exporting a car from Germany, you will need  a customs declaration  if you are sending it outside the EU. You will also need to obtain  export license plates  when exporting to any other country.

Purchase versus import

When deciding whether to buy or import a car in Germany, you should consider the following:

  • Cost  . It costs more to buy a new car, but you need to factor that in with import taxes and any transport charges from your home country. In addition, there may be additional maintenance costs when the imported vehicle is in Germany.
  • Time and Effort  – You need to compare the process of importing a car with buying a new one. You will have a lot less admin if you don’t have to pay taxes and already have all the necessary documents. However, if you buy a car from a German dealership, they usually take care of most of the paperwork.
  • Length of stay in Germany  – If you are staying for less than 12 months, you may not need to register your imported car, so this option may be easier. If you intend to stay for the long term, consider how marketable your imported car will be if you want to sell or trade it in.

I will sell a car in Germany

You can sell a car in Germany in different ways:

  • Through a car dealership. Many German dealerships deal in both used and new cars and are happy to buy from car owners.
  • Placing your vehicle on a website or online sales platform.
  • I will sell at a car auction or fair.
  • Selling privately through classified ads or word of mouth.

You can use various websites to sell cars directly or search for dealerships. They include:

You will need both parts of the registration certificate (  Zulassungsbescheinigung  ) and the latest  TUV report  if the car is more than three years old. If you sell through a dealership, they will charge either an upfront fee or a commission after the car is sold. They may also ask for additional documentation, such as an updated maintenance report. If you don’t have one, you may be charged an additional fee.

If you need help setting a price for a used car, it’s worth checking out classifieds sites. In addition to getting an idea of ​​what your car is worth, some of these sites have online appraisal tools.

The equipment you need for your car in Germany

In addition to the documents mentioned above, you must keep the following in the car at all times:

  • First aid kit
  • A red warning triangle that should be placed behind the car in the event of an accident
  • Reflective jackets (one for everyone in the car)
  • Headlight converters
  • EU Accident Report Form for use in the event of an accident

Useful resources

Buying a car and registering it in Germany. How to buy a car in Germany. Websites for buying and selling cars in Germany.