Cars-Buying/Registering/Insuring/Renting

Buying a new or used car in Germany can be a challenge, but there's plenty of help - if you know where to look for it.

The car-buying experience in Germany can be both exciting and daunting. It can be exciting because there is a very wide number of manufacturers to choose from. It can be daunting because car prices tend to be higher and everything has to be handled in a different language. But it is not really that much different from buying a car in UK and there are special programs designed with expatriates in mind.

There are plenty of sources to help you decide what car you wish to buy, including, among others, television commercials, newspapers and auto magazines. You can usually find someone at the showroom who speaks English, and German law generally prohibits the bargaining that is so common in other countries. So, in theory, what you see on the sticker is what you should have to pay for the car.

There are still some ways of getting a price reduction. Paying cash allows the dealer to give a 3 percent discount. Some dealers register cars for a day and then immediately deregister them, this turns them into "used cars", giving flexibility in pricing. There is also room for negotiation when it comes to the "extras"; sunroof, air conditioning, sound system and other accessories.

If you don't pay cash for a new car (and not many people do) then you will have to finance it. Many manufacturers offer internal finance programs, usually at a slightly better interest rate than a bank. But it pays to check both possibilities. Interest rates may be better with the manufacturer but the loan may have to be paid back in three years, and you probably can't expect financing for a car that is discounted in any way. Depending on the price, financing can range from 24 to 60 months. The best interest rates are offered when a 20 percent down payment is made.

Can be a good value if you shop carefully. If you buy a used car through a dealer you can normally expect some sort of limited guarantee. Some banks, and even some dealers, may finance used cars, but this is not as easy as with a new cars, factors such as mileage, age and value are involved.

Good deals can be found if you consider buying a used car (Jahreswagen) or a demo model (Vorf�hrwagen). Employees of car manufacturers are allowed to buy cars at a discount and can resell them after keeping them a year (hence the term Jahreswagen.). A Vorf�hrwagen has usually been displayed in the showroom and used for test drives, either of these 'used car' types are generally in good condition, have low mileage and are good value for money.

If you're adventurous and want to buy a used car from a private owner, the newspapers are full of advertisements. The key things to look for in the ads are mileage, date of the next MOT inspection (T�V), date of first registration (Erstezulassung or EZ), model year, type of catalytic converter and number of owners. It is wise to observe the normal precautions when buying a used car privately. In general, though, Germans take good care of their cars and you may find what you want for a good price. It is always good to get a contract when you buy a car. There are standard contracts available from the German Automobile Associate (ADAC).

When you buy a car from a dealer, whether new or used, you can expect help in the registration and insurance areas, if you buy a car privately you will have to do these things yourself.

Essentially, the number plates of a car are registered to the owner, therefore when you purchase a car it may not have any number plates, or the official "registration sticker" will not be affixed to the plates. You must arrange this as soon as possible as it is illegal to drive on public roads without correctly registered plates.

In summary, the registration process requires the following (detailed notes follow):-

Kraftfahrzeugbrief/Kfz-Brief (Proof of ownership of the car)
Unbedenklichkeitsbescheinigung (Certificate from Central Vehicle Register, if no Kraftfahrzeugbrief is available)
Versicherung Doppelkarte (Insurance certificate)
Technischer �berwachungsverein (T�V) (Depending on the age of the car, it must have valid/current Safety Inspection documentation-T�V (equivalent to a UK MOT)).
Abgasuntersuchung-ASU (Vehicle Exhaust Emission Test - can be actioned at same time as MOT)
Kennzeichen (Number plates)
Aufenthaltserlaubnis (your Residence Permit)
Anmeldung (Personal Registration Document)
Passport

You should take the above documents to one of either of the following addresses. Process to follow is to go the first available counter for your documents to be checked. You will receive a form stating how much you will have to pay, and the counter number to go to for the new Kraftfahrzeugschein and Kraftfahrzeugbrief. Pay at the Cashiers desk first, then get the new numberplates made up (there are several companies offering this service just outside the building). Finally take the new numberplates to the final counter to get them "stamped" as successfully registered.

Registration requirements as listed above require a Kraftfahrzeugbrief (proof of ownership); a document that is supposed to accompany the car through all owners from assembly line to scrap yard. Therefore, if a car is purchased in Germany this document should be made readily available, it is an important document to retain and is required for insurance and registration purposes. For cars being brought from UK, this document must be applied for separately before the car can be registered, see below on Central Vehicle Registration Certificate.

This Certificate is required if a Proof of Ownership (Kraftfahrzeugbrief) has not yet been obtained for a car (i.e. when importing to Germany for the first time), and can be requested from The Kraftfahrt-Bundesamt (KBA) - Central Vehicle Register, the German equivalent of the DVLC. This organisation collects, stores and processes vehicle and owner data on vehicles's registration plates, information is transmitted to the Authority in the cases of changes in registrations, changes of ownership, and final deregistrations etc (this Office also is the Central Register of Traffic Offenders - see Driving Section).

The Certificate required should be requested by completing a formal application form available from the KBA website at http://www.kba.de. Part of this website is in English, however the form required is only available in German. Go to "Formulare", at the bottom of the homepage, then select "Auskunft aus dem Zentralen Fahrzeugregister", then choose your download option to view/edit the form for printout. See the end of this Documentfor English/German dictionary to assist in the form completion!

This form must be sent with an original signature, and can either be sent via post (taking up to 4 weeks to process), or via telefax at an extra charge but a more speedy service. You should not submit any money with the application, you will be required to pay "on delivery", which is a special Post Office service where your local Post Office will notify you that you have a document, you can then collect this document and pay the required amount there. Once issued the Certificate is valid for one month.

A minimum of unlimited third party liability insurance policy is compulsory for all automobiles entering Germany. As a proof of insurance, the owner must present an insurance certificate ("Gr�ne Karte" or "Versicherungsdoppelkarte") showing that the vehicle is insured for travel around Europe, your card will indicate any exclusions. See below on "Car Insurance from UK" as it is most probable that any UK car insurance will not be valid for any long duration out of UK.

There is no requirement for a driver to have anything more than third party liability insurance, but other kinds are available and sometimes advisable. There is fully comprehensive, covering all damages to your own car, another car or a person or object. There is also partial coverage for fire, theft and other sorts of damage (from break-ins, shattered glass, animals, etc.), and policies covering the death or disability of a passenger. As in UK, insurance prices vary, a good recommendation to get an estimate of different insurance offers from a local ADAC office, they can provide a quote online for insurances and can effect your chosen insurance immediately.

If you have a good driving record in your home country you can get credit for it here. You should arrange for a letter or certificate to be provided by your insurance agent in UK. Your agent will issue you, free of charge, an International Green Card as proof-of-insurance which is required to drive in other European countries.

Any individual intending to bring their car over from UK should make themselves fully aware of their insurance cover from UK and obtain a "Green Card". Legislation in UK requires all insurers to provide a minimum level of cover under their standard motor policies for drivers going abroad with their cars, but the level of cover rarely matches the level provided in the home-country, i.e. if you have comprehensive cover in UK this may not apply when overseas. Many companies scale back comprehensive motor insurance to third-party cover once you cross the Channel and time-limit the duration of stay. In all cases as far as our research has taken us, it is not possible to arrange an insurance policy from UK which will cover a car permanently outside UK.

Tests are conducted by the Technischer �berwachungsverein (T�V) nationwide, costing approximately �30 and �20 for any retest. Inspection is certified by a sticker being affixed to the rear number plate; the number in a small circle indicates the year of last inspection, the outer circles shows the number of the month in which the vehicle is next due for inspection.

The emissions test is certified by a hexagonal sticker on the front licence plate. The test must be specifically requested and can be carried out by any T�V station or authorised service garage. It costs approximately �32 exclusive of any necessary repairs. Vehicles that pass the test are issued with an ASU certificate which must be carried with registration documents.

Normal rules apply when renting a car, in that you are required to show a valid driving licence (European), and a credit card is usually required as security deposit. Car insurance usually only covers third-party damage so you should consider paying additional premiums to top this up to fully-comprehensive insurance.

BAESG have local contacts with car-hire firms which you may find provide better deals, alternatively, the following websites offer on-line booking/reservation services: