Should you buy a new, nearly new (km0), used or dealer car?

Terms used

• Km0 — A km0 car is new and unused but already registered by a dealer or brand, so it has almost no mileage.
• ITP — The ITP is the transfer tax charged on many second-hand purchases, mainly private ones, but not on dealer sales.
• Gestión — The gestión is the registration or ownership-change paperwork, which dealers or a gestor handle for a fee.
• DGT — The DGT is Spain's traffic authority, which registers vehicles and charges a fee for ownership changes.

Key rules

• Dealer guarantee: A dealer must give at least 1 year of legal guarantee on a used car, and 3 years on a new one.
• Private sale: You have 6 months from delivery to claim a hidden defect, and the seller can exclude this in the contract.
• Gestión fee: Ask in writing whether the dealer's price includes the paperwork, because some charge 100 to 300 euros extra.
• km0 warranty: The manufacturer warranty on a km0 car starts at first registration, so part of it is already used.

The short answer

Pick by how much protection and help you want, then by price. A dealer car (new, km0 or used) gives you legal protection and usually handles the paperwork. A private sale is cheapest but leaves you on your own.

Price gap

A km0 car is usually clearly cheaper than the same model new. A comparable used car costs less again, and the gap grows with age and mileage. The size of each gap changes by brand, model, stock and campaign. Compare the same model as new, km0 and used before you decide, using current listings and dealer quotes.

What km0 means

A km0 car is new and unused. The dealer or brand has registered it in its own name, so it has Spanish plates and papers but almost no mileage.

• The registration tax has already been paid. You pay no transfer tax (ITP), because you buy from a dealer.
• The manufacturer warranty normally starts on the first registration date, so part of it is already used. Ask for that date.
• You are a consumer, so you get the same legal guarantee as for a new car. A km0 sold as second-hand can carry a shorter period. Check the contract to see which one applies.

Protection compared

New or km0 from a dealer: the legal guarantee is 3 years. A fault that appears within 2 years of delivery is presumed to have existed at delivery, so the seller must prove otherwise. The remedy is repair or replacement first, then a price cut or ending the sale.

Used from a dealer: the seller may agree a shorter guarantee, but never less than 1 year. A fault that appears within that first year is presumed to have existed at delivery. The remedies are the same. Get the guarantee period in writing.

Used from a private seller: consumer law does not apply. You can claim for hidden defects that make the car unfit for use and that you could not see. You must claim within 6 months of delivery, and you must prove the defect existed before you got the car. You can end the sale or ask for a lower price. The contract can exclude this protection unless the seller acted in bad faith. Get legal advice before making any claim.

Paperwork help

Dealers normally handle the registration or ownership-change paperwork (gestión) for you. It is often in the advertised price, but some dealers charge a separate gestión fee on top of the DGT fee. Ask for written confirmation of what is included. In a private sale, you or a gestor you hire does the transfer.

Which route fits you

• You want maximum protection and no paperwork: new, or km0 if you accept a partly used warranty.
• You want the lowest price and can inspect the car yourself: private sale. Have a mechanic check it first, and budget for the transfer.

Use the checklist and the questions below before you sign.

Checklist

• Compare the price of the same model as new, km0 and used, since a km0 car is usually clearly cheaper than new and a comparable used car costs less again.

• Ask for the date of first registration of a km0 car, so you know how much manufacturer warranty is already used.

• Check in the contract whether the car is sold as new or as second-hand, because that sets the legal guarantee (3 years or at least 1 year).

• Ask a dealer for the guarantee period of a used car in writing, and make sure it is at least 1 year.

• Ask the dealer to confirm in writing whether the ownership change or registration paperwork (gestión) is included in the price.

• Ask what separate gestión fee the dealer charges, since it can run from 100 to 300 euros on top of the DGT fee.

Frequently asked questions

Does a km0 car come with the full new-car warranty?

Not always in full, because the manufacturer warranty normally starts from the first registration date, so part of it is already used when you buy. The legal guarantee is 3 years if the car is sold as new, but a km0 sold as second-hand can carry a shorter agreed period, never under 1 year. Check the contract for how the car is sold and the warranty start date.

Do I pay registration tax or transfer tax on a km0 car?

No, you pay no transfer tax (ITP) on a km0 car bought from a dealer, because the sale is subject to IVA instead. The registration tax (impuesto de matriculación) was already paid on the dealer's first registration, so it is not charged to you again.

How long do I have to claim a hidden defect on a car bought privately?

You have 6 months from delivery to claim a hidden defect on a privately bought car. You can ask to cancel the sale or to reduce the price, and you must prove the defect existed before delivery. The contract can exclude this protection unless the seller knew about the defect and hid it.

Does a dealer's used car have better protection than a private sale?

Yes, a used car from a professional dealer must have a legal guarantee of at least 1 year, which is longer protection than most private sales give. A defect that appears within the first year is presumed to have existed at delivery, so the dealer must prove otherwise. Consumer law does not cover private sellers.

Is the paperwork for the ownership change included in a dealer's price?

Often yes, but not always, because some dealers charge a separate fee for handling the paperwork (gestión), typically 100 to 300 euros, on top of the DGT fee. Ask the dealer to confirm in writing whether it is included before you sign.