This post is also available in:
The purchase and sale of second-hand vehicles – whether cars or motorcycles – is a very common operation between individuals and also between individuals and professionals (dealers or sales). However, many people are unaware of the legal obligations, applicable guarantees, taxes and the necessary procedures to carry out the change of ownership correctly.
From our office in Torrevieja, specialized in civil law, we explain the key aspects that you must take into account before signing a vehicle purchase contract.
1. Purchase and sale of a vehicle between individuals
When the transaction is carried out between two natural persons (without the intervention of a professional in the sector), the relationship is mainly regulated by the Civil Code.
Seller’s obligations
The seller is obliged to:
- Deliver the vehicle in the agreed condition.
- Ensure that he is the rightful owner.
- Submit the necessary documentation (registration certificate, technical sheet, valid ITV if applicable).
- Be responsable for hidden defects.
What are hidden vices?
Serious defects are:
- They were not visible to the naked eye.
- They existed before the sale.
- They make the vehicle unfit for use or decrease its value significantly.
The buyer has 6 months from delivery to claim for hidden defects. You can request:
- The termination of the contract (return the vehicle and recover the money).
- A proportional reduction in price.
It is important to note that defects resulting from normal wear and tear due to use are not considered hidden defects.
Obligations of the buyer
The buyer must:
- Pay the agreed price in the agreed manner.
- Make the change of ownership at the Traffic Headquarters.
- Pay the Property Transfer Tax (ITP).
2. Purchase and sale between private and professional
When the seller is a professional (dealer or buying and selling company), the transaction is considered a consumer relationship.
In this case, the regulations for the protection of consumers and users apply, which offer greater protection to the buyer.
Legal guarantee
The professional must offer a minimum warranty of 1 year on second-hand vehicles (it can be extended contractually).
During this period, if a defect not attributable to misuse appears, the buyer has the right to:
- Free repair.
- Substitution (if applicable).
- Price reduction.
- Termination of the contract (in serious cases).
Unlike the sale between individuals, here we are not only talking about hidden defects, but also about a broader legal guarantee.
3. Purchase contract: essential
Although the law does not require a specific form, it must always be formalized in writing.
The contract must include:
- Complete buyer and seller data.
- Vehicle data (make, model, license plate, chassis).
- Price and method of payment.
- Date and time of delivery.
- Condition of the vehicle.
- Signature of both parties.
It is advisable to include a clause where the buyer declares that he has tested the vehicle.
4. Secure payment methods
The most common ways are:
- Bank transfer.
- Bank check.
- Payment in cash (with the current legal limits).
- Bizum (for small amounts).
To prevent fraud:
- Do not deliver the vehicle without confirming the entry.
- Be wary of unverified bank receipts.
- Carry out the operation during banking hours.
In transactions of high amounts, the safest thing to do is to make the immediate transfer or use a bank cheque.
5. Taxes on the sale of vehicles
Between individuals: ITP
The buyer must pay the Property Transfer Tax (ITP), which in the Valencian Community is usually 6% of the tax value of the vehicle (not necessarily the agreed price).
The term is 30 working days from the signing of the contract.
Sale from professional to individual: VAT
If the seller is a professional:
- VAT is usually included in the price.
- The buyer does not pay ITP.
- The professional issues an invoice.
6. Change of ownership in the DGT
The change of ownership must be made to the Directorate General of Traffic (DGT).
It can be done:
- In person.
- Through the agency.
- Telematically with a digital certificate.
Required documentation:
- Purchase contract.
- Proof of payment of the ITP (if applicable).
- Registration certificate.
- Technical sheet.
- ID of the parties.
- Proof of payment of the Traffic Tax.
The recommended period is 30 days.
⚠️ Very important: the seller must notify the DGT of the sale to avoid liability for fines or subsequent taxes.
7. Liability for Fines and Taxes
Until the change of ownership is registered in Traffic, the registered owner remains liable to the Administration.
Therefore:
- The seller must communicate the transfer.
- The buyer must process the exchange quickly.
In our office in Torrevieja we have handled numerous cases of claims for fines received after a poorly processed sale.
8. Encumbrances and seizures
Before buying a vehicle, it is advisable to request a report from the Directorate General of Traffic to check if there are:
- Embargoes.
- Reservation of Title.
- Seals.
- Financial charges.
If the vehicle has a reservation of title, the ownership cannot be changed until its cancellation.
9. Frequent problems in the purchase and sale of vehicles
Some common conflicts are:
- Mileage handled.
- Serious breakdowns within a few days.
- Vehicles without MOT.
- Existence of hidden charges.
- Non-payment of the price.
In these cases, it is essential to act quickly, preserve evidence and seek advice from a lawyer who specialises in civil law.
10. When to go to a lawyer in Torrevieja?
Legal advice is recommended when:
- Hidden defects are detected.
- The seller refuses to respond.
- There are embargoes or unreported charges.
- There are discrepancies in the price or form of payment.
- You want to draw up a secure contract.
In transactions of a certain amount, preventive advice can avoid costly litigation.
Conclusion
The purchase and sale of vehicles between individuals or between individuals and professionals involves rights and obligations that should be known before signing. Differences in terms of warranty, taxes and liability can be relevant and generate conflicts if you do not act correctly.
If you need advice on buying and selling a car or motorcycle in Torrevieja or in the Vega Baja region, our office specialized in civil law can help you prevent problems or defend your rights.
This post is also available in:
