Tips for buying a car in Germany and other EU countries
Consumers like to take advantage of the European Common Market to find lower product prices in other EU countries. Many German dealers offer their cars to consumers throughout Europe through online websites.
Most sales talks are conducted in English or with the help of a translator. If a deal is struck, the salesman will give you a contract in German. But beware: This pre-written contract may be different from what was previously discussed!
This allows the seller to evade warranty rights and gives the seller an unfair advantage and the opportunity to sell damaged cars.

Buying a used car in Germany
When buying a used car, beware of scams. Always check the seriousness of the offer. Be particularly wary of bargain prices.
Take a good look at the sales contract. Here are some things to look out for in German car sales contracts.
How sellers try to exclude the warranty
According to the law, the seller can only exclude the warranty for the used car if the seller is acting as a private person in a private sale, or if both the buyer and the seller are acting as traders in a professional business.
To achieve this, the dealer can deliberately include the following wording in the sales contract:
"Händlerkauf“, "Händlergeschäft“= buyer and seller are traders
"Käufer bestätigt Gewerbetreibender zu sein“ = buyer confirms to be trader
"Kauf zwischen zwei Verbrauchern“ = buyer and seller are consumers
Look carefully. If you find the above phrases in your contract, the used car dealer will most likely try to exclude the warranty by inserting additional clauses such as:
"Ohne Garantie“ = Without warranty
"Unter Ausschluss jeglicher Gewährleistung” = Under exclusion of any warranty
"Ausschluss der Sachmängelhaftung” = Exclusion of liability for material defects
How car dealers try to hide defects
Dealers also try to avoid their warranty obligations by having the consumer certify that the car was sold as seen, or worse, that the buyer knew about the defects.
"Verkauft wie gesehen“ = sold as seen
"Käufer bestätigt, dass er auf Mängel hingewiesen wurde und diese akzeptiert hat“ = Buyer confirms that he was advised of and accepted the defects.
The seller will often make promises of which he knows nothing later. If these promises are not agreed upon and put into a written contract, the seller will often fall back on the old sales contract and previous regulations.
„Nebenabreden bedürfen zu ihrer Gültigkeit der Schriftform“ = Supplements to an agreement must be in writing to be valid.
„Ich bestätige, dass mir der Verkäufer keine Zusicherungen gemacht hat“ = I confirm that the seller has not made any representations to me.
Some tips to consider when buying a used car abroad
- Make sure the seller is legitimate: How does the seller present themselves on their website?
- Never pay a deposit and only buy the car after a thorough inspection and test drive.
- Never sign a contract if you don't understand every word. You could ask a German friend to read the contract with you.
- Insist that any additions to the contract be in writing.
- Check that you have received all the vehicle documents, especially those required for registration in your country.
Buying a new car: Watch out for the VAT!
Buying a new car is always an expensive investment. Sometimes it is worth buying your car in another EU country to get a good deal.
This is what a Swedish consumer thought when he bought his dream car in Germany for a relatively low price. He did not hesitate long before buying "his" BMW from a German car dealer who offered the car for 21,815 EUR. The sales price included VAT of 3,483.07 EUR.
The consumer therefore agreed with the car dealer that the German VAT would be reimbursed after the car had been duly registered in his place of residence, Gothenburg.
However, this was not the case: the consumer waited in vain for the refund, even though he had submitted all the necessary documents. The car dealer did not respond to the consumer's request.
The consumer then contacted the European Consumer Center in his home country, Sweden. Our colleagues in Sweden then contacted the lawyers at ECC Germany, who in turn contacted the German car dealer. The lawyers' intervention quickly produced results and the Swedish consumer was refunded the full amount of VAT.
Some tips to remember when buying a new car abroad
- Prepare for the purchase of a vehicle abroad: Get information from the car dealer on the documents that are needed for the smooth export of the vehicle.
- In the case of a new car (first registered less than six months ago or with a mileage of less than 6,000 km), you only have to pay VAT in the country where you register the car, not in the country where you buy it. This is regulated by an EU directive.
- Insist that the car dealer specifies the VAT refund in your contract. This is the only way to be legally protected in case of problems. If there is no legal agreement, the dealer is not obliged to refund the VAT.
Fact sheets regarding country of purchase and country of registration
Below you will find information sheets for individual European countries on what you need to bear in mind when buying and registering a car.
The information has been prepared in cooperation with our colleagues from the European Consumer Centres Network. Status of the information: 2019.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and Small and Medium-sized Enterprises Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.