How to buy a car in Germany as a foreigner: dealer checklist

Step 3: Confirm the VAT status before you agree a price

Every car bought from a German business is either margin-scheme or VAT-qualifying, and you must know which before you agree a price.

• Margin-scheme car (§ 25a UStG, "differenzbesteuert"). The invoice shows a gross price with no VAT and a note that the special margin scheme applies. You pay that gross price, no VAT is due on arrival, and you resell under the margin scheme in your country (VAT Directive 2006/112/EC, Articles 311–343).
• VAT-qualifying car ("MwSt. ausweisbar"). The German dealer invoices net to your VAT number as a tax-exempt intra-Community supply. You account for VAT in your own country and deduct it, then charge full VAT on resale.

For a VAT-qualifying purchase, the seller will check your VAT number in VIES and needs proof that the car has left Germany. Under § 17b of the German VAT Implementing Ordinance (UStDV), the entry confirmation (Gelangensbestätigung) must state where and in which month the transport ended and, for vehicles, the VIN. Some sellers ask for a deposit equal to the VAT until they receive it. See our guide to VIES VAT number checks.

A car under six months old or with no more than 6,000 km is a "new means of transport" and is always taxed in the country of destination, even if bought from a private seller.

Step 4: Check the car and the seller

Check the car as if you will not see it again until it arrives, because often you won't.

1. VIN. Match the VIN on the car, the registration certificates, the invoice and the CoC.
2. History. Ask for the latest HU report, service records and, ideally, a digital service printout from a brand dealer.
3. Accident damage. Ask directly whether the car is accident-free ("unfallfrei") and get the answer in the contract.
4. Mileage. Compare readings in service and inspection records; they should rise steadily.
5. Seller. Check the company in the German commercial register and its VAT number in VIES. Be cautious with sellers who only communicate by mobile phone or messaging apps, or who push for quick payment.

Step 5: Pay the German seller safely

Pay by bank transfer to an account in the name of the selling company, after you have checked that the account holder matches the invoice. Avoid cash and avoid paying third parties.

Cash also creates obligations for the seller. Under the German Anti-Money Laundering Act (GwG), motor vehicles count as high-value goods, and traders must carry out customer due diligence, such as identifying the buyer, for cash payments of €2,000 or more. Many German dealers therefore refuse cash or ask for ID and company documents.

For large purchases from unknown sellers, consider an escrow service or paying a small deposit and the balance on collection after inspection. Never pay the full price for a car whose Teil II you have not seen.

Step 6: Collect the right documents

A German used car must come with these documents; do not leave without them:

• Zulassungsbescheinigung Teil I (registration certificate part I);
• Zulassungsbescheinigung Teil II (title document, the former Fahrzeugbrief);
• invoice with the correct VAT wording (margin scheme or intra-Community supply with both VAT numbers);
• certificate of conformity (CoC) if available, which simplifies registration at home;
• latest HU report, service records and both keys;
• for VAT-qualifying cars, the Gelangensbestätigung to sign on arrival.

Your registration authority at home will ask for Part I and Part II and usually keeps them.

Step 7: Get the car out of Germany

You can take the car home on German export plates or by truck. Export plates (Ausfuhrkennzeichen) require the car to be deregistered, export insurance and a valid HU, and are explained step by step in our guide to German export plates. For several cars or long distances, a car transporter is cheaper and spares the car extra mileage; the carrier issues a CMR consignment note, which also serves as proof of transport for VAT.

Once the car arrives, register it in your country under your national rules, paying any registration tax. MyCarDealer helps with the first and last step of this list: it shows the market price of the same car in your own country and the maximum bid after transport and VAT, so you know before you travel whether the deal works. Try it with a free valuation.

Frequently asked questions

Can a foreign dealer buy a car in Germany without a German address?

Yes. You do not need a German address or registration to buy a car in Germany. You need a company and VAT number at home for VAT-qualifying purchases, and a way to take the car out of Germany, either export plates or a transporter.

Which documents must I receive from a German seller?

The Zulassungsbescheinigung Teil I and Teil II, an invoice with the correct VAT wording, the CoC if available, the latest HU report, service records and all keys. Without the Teil II, registering the car in another country is very difficult.

How do I pay a German seller safely?

Pay by bank transfer to an account in the seller's company name that matches the invoice, after checking the company in the commercial register and VIES. Avoid cash and payments to third parties, and use escrow for large deals with new sellers.

How do I get the car out of Germany after purchase?

Either on German export plates, which require deregistration, export insurance and a valid HU, or on a car transporter with a CMR consignment note. Transport by truck is usually better for several cars or long distances.

Do I pay German VAT when buying a used car in Germany?

Not if you buy as a VAT-registered dealer: a margin-scheme car has no VAT shown, and a VAT-qualifying car is invoiced net as an intra-Community supply. VAT is then handled in your own country.