Buying a Car in Germany as an Expat (The Ultimate 2025 Guide)

You’ve been in Germany for a few months. The public transport is excellent—until it’s not. You’re juggling bags in the rain, missing buses by seconds, or eyeing the Autobahn with envy. Then it hits you: you need a car. But buying one as a foreigner in Germany? That’s where things get serious.

Germany doesn’t make car ownership difficult—just very, very precise. From insurance documents to environmental stickers, there are no skip steps. This guide walks you through everything: legal requirements, paperwork, types of cars, costs, and expat-specific hurdles.

Legal Requirements to Buy a Car in Germany

Here's what you'll need:

• Valid ID and residence status
  You must present your passport or national ID and prove that you legally reside in Germany. Non-EU citizens need a residence permit (Aufenthaltstitel).
• Proof of address (Anmeldung)
  Before buying a car, complete your Anmeldung—Germany’s mandatory address registration process. Without it, you won’t be able to register your vehicle.
• German bank account
  Most insurance providers, tax authorities, and dealerships require a German IBAN for processing transactions.
• Valid driver’s license
  EU licenses are valid indefinitely. Non-EU licenses may need to be converted within six months to a German license, depending on your country of origin.
• Vehicle insurance (with eVB number)
  Before registration, you must obtain car insurance. The insurer will provide an eVB number, a digital confirmation that your car is covered. You’ll need this for the next step.
• Registration at the Zulassungsstelle
  All vehicles must be registered at your local vehicle registration office (Kfz-Zulassungsstelle). You’ll provide your documents, pay fees, and receive your license plates here.

Buying a Car as a Foreigner

As a foreigner, buying a car in Germany is possible—but it comes with a few extra considerations:

• Visa/residence permit: Most car registrations are tied to your visa validity. If your stay is temporary (under 6 months), leasing or long-term rentals may be more practical.
• Non-German driver’s license: Some national licenses require translation or conversion (Umschreibung). Not all foreign licenses are accepted for insurance purposes.
• Language barrier: Most contracts and registration forms are in German. Bring a German-speaking friend or use a certified translation service to avoid signing anything unclear.
• Banking and insurance: Some insurers may hesitate to insure expats without long credit histories or German employment contracts. Using expat-friendly providers helps.
• Financing challenges: A car loan may be difficult without a long-term visa or permanent work contract. Foreigners often pay in full or buy cheaper used cars.

New, Used, or Jahreswagen? (What to Buy)

Germany has three major categories of vehicles on the market:

• New cars (Neuwagen)
  These come with full manufacturer warranties and require no inspection (TÜV) for the first three years. Ideal for long-term expats, but new vehicles depreciate quickly and require a higher upfront investment.
• Used cars (Gebrauchtwagen)
  Affordable and widely available, you can buy from private sellers or used car dealerships. Always check that the vehicle has a valid TÜV inspection (good for two years) and request the service history.
• Jahreswagen (One-year-old cars)
  These “annual cars” are typically returned lease vehicles or former dealership demos. They have low mileage, better pricing than new cars, and are often under warranty. For expats, they offer a safe middle ground.

 Jahreswagen is one of the most popular choices among savvy German buyers—not just expats.

How to Vet Sellers

Always meet the seller at their home or an official dealership—this adds a layer of trust and accountability. Before proceeding, ask for the TÜV inspection report, service records, and repair invoices to verify the car’s condition. 

Avoid paying deposits through WhatsApp or email, as these methods are often used in scams. If you're dealing with a dealership, Google their Impressum—the legal disclosure page required by German law—to confirm legitimacy. And if you’re unsure about the car’s condition, it’s common (and smart) to bring in a local mechanic for a quick inspection.

Total Cost of Owning a Car 

The sticker price is just the beginning. Car ownership in Germany includes several ongoing costs and government fees:

• Purchase price:
  Used compact cars average between €6,000 and €10,000. Depending on model and features, new cars can range from €15,000 to over €30,000.
• Registration fees:
  Usually between €30 to €70. Includes your license plates and admin costs at the Zulassungsstelle.
• Insurance premiums:
  Expect to pay €300–€1,000 per year. Costs depend on your age, vehicle type, driving history, and insurance level.
• TÜV inspections:
  Required every two years—costs about €100, plus any repairs needed to pass.
• Kfz-Steuer (vehicle tax):
  Calculated based on engine size and emissions. Can range from €100–€400/year. EVs are exempt or discounted in many cases.

Expat Mistakes When Buying a Car

• Not having a valid eVB number: Without it, registration is impossible.
• Missing or expired TÜV: You must either pass inspection or risk a rejected registration.
• Assuming the dealership handles everything: In Germany, buyers are often responsible for registration and insurance.
• Skipping contract translation: Never sign anything in German unless you fully understand it.
• Underestimating time: Booking a Zulassungsstelle appointment can take weeks. Plan ahead.

The Registration Process, Step-by-Step

This is how it works in real life:

1. Find your car: Use platforms like mobile.de or visit local dealerships.
2. Negotiate & sign the contract: Confirm price, condition, and if VAT is included.
3. Secure insurance & get your eVB number: This is required before registration.
4. Book a Zulassungsstelle appointment: Some cities require online bookings.
5. To register the vehicle: Bring ID, proof of address, purchase contract, insurance, TÜV certificate, and payment.
6. Get your plates: Order them from nearby vendors and bring them back for stamping.

Best Cars for Expats in 2025

The Volkswagen Polo is a perennial favorite: compact enough for tight city parking, yet efficient and sturdy for everyday use. The Skoda Octavia is a wise choice for those who need a bit more space without sacrificing fuel economy, and it holds its resale value exceptionally well. 

The Opel Corsa remains a hit among younger drivers and city dwellers, offering low upfront costs and urban agility. Then there's the Toyota Yaris, prized for its rock-solid reliability and low insurance premiums. And of course, the Volkswagen Golf continues to hold the crown in 2025 as Germany’s most popular new car—an icon that never goes out of style.

Buying EVs in Germany

Electric cars are gaining popularity in Germany, especially in urban centers with tight environmental regulations. BYD, the Chinese automaker, has overtaken Tesla in EV registrations, while Volkswagen doubled its electric car deliveries in Europe in 2025.

Charging infrastructure continues to expand, and many cities now offer perks for EV drivers, including lower taxes, reduced parking fees, and access to low-emission zones. If you’re staying long-term and have access to home or workplace charging, switching to an EV could make financial sense.

Common Expat Challenges

For expats, the most challenging part of buying a car in Germany is rarely the vehicle itself. It's the bureaucracy. Outside luxury brands, the concept of a one-stop dealership handling everything is still rare. Instead, buyers must sort multiple steps themselves: finding the car, securing insurance, booking a registration appointment, and handling documentation—often in German.

Still Buying?

For many expats, owning a car in Germany unlocks a different kind of freedom. It means weekend road trips to the Alps, groceries without a backpack, and less dependence on unpredictable public transit. But it also comes with paperwork, patience, and preparation.

The key is understanding what you're getting into before the purchase—not just financially. Every step has its rhythm, from choosing the right vehicle type to navigating insurance, registration, and emissions zones.