Used cars in Germany versus new cars

This article is dated as shown. Laws, fees and prices have changed since then. Check the figures before you rely on them.

What are the advantages and disadvantages of a new car in Germany?

The most important questions and answers:

The comparison of discounts and loss of value reflects examples from April 2018. The fact that a car is new does not by itself prove that it has no hidden defects. From the article of 11.04.2018: “Anyone who can afford a new car gets exactly the car he or she wants. After all, the colour, engine and equipment can be chosen individually. On top of that, there are usually attractive discounts and finance offers on new cars. Customers can be sure that the car is state of the art and has all the necessary safety features. New cars are also generally more environmentally friendly than older models. Buyers of a new car can be confident that the car has no hidden defects. New cars in Germany come with a warranty of two to seven years. The disadvantage of a new car is its rapid loss of value. In the first year the value of the car drops by 25 to 50 percent. This is why many buyers in Germany prefer to buy a one-year-old car. I myself am convinced that buying new simply does not pay. Perhaps my opinion will change one day, but for now I am deeply convinced of it. One example is the Audi S8 Plus: the price of the new car was 186000€, but within a year it fell to 106000€, and that with a mileage of only 70 km. This is the clearest example of loss of value.”

Another example of the Audi S8+ losing value, in one of our videos.

From the article of 11.04.2018: “It is the same story with the Audi S Q7: the new car costs around 200000€, and with 3000 km on the clock it already sells for 112000€. Such cars are almost new, you still have several years of warranty left and you can be confident in the reliability of your car.”

There is one more example, a BMW 750d: a crazy loss of value of 100,000€ in 2 years on a BMW 750d.

What should you look out for when buying a used car in Germany?

When buying from a private seller, check the car, the documents and the contract. An exclusion of liability does not apply automatically, and under § 444 BGB it does not protect the seller who deliberately conceals a defect or breaches a guarantee of quality that has been given. Payment and handover need to be agreed separately; a transfer through an intermediary does not remove every risk.

If you go to a franchised dealer, things are different. The cars meet the high standards set by DEKRA or TÜV. In addition, the dealer gives you a warranty on the car. One thing is clear: service and quality come at a price. You will usually not find the cheapest offer at a franchised dealer. But as the saying goes, you need to keep an eye on things everywhere. A franchised dealer is easier to deal with; they try not to lose face and do everything for their customers. Unfortunately, dealers vary. We have had cases where they promise to do one thing but unfortunately do not do it, or do it but not completely.

Buying from an independent dealer. They are prepared to go a long way to sell their car. Of course, they can arrange a TÜV or Dekra inspection. They may say one thing but write something completely different in the contract. Here you need to be extremely careful. Again, dealers differ. Some work without any problems and keep their word, while others take the money and then you cannot reach them on the phone.

The bottom line: you always need to keep an eye on things!

What rights do you have when buying a used car?

In a consumer purchase today, § 477 BGB establishes a presumption that a defect already existed at handover if the non-conformity appears within one year, subject to the exceptions provided. A voluntary warranty applies in addition, on the guarantor's terms. Whether it is valid outside the country is checked against the documents rather than being ruled out automatically on any export.

In our experience there have been many examples of almost new or one-year-old cars with low mileage losing a crazy amount of value. Of course, cars need to be inspected and test-driven before buying. Which is essentially what we do.

In general terms I have described and explained in our material where the main advantage of buying a used car in Germany lies compared with a new one. I have also touched briefly on buying a car from private sellers or from a dealer.

Watch our videos and visit our page. Safe travels on the road.

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