Car dealership or private seller? Self-pickup.Features of Buying a Car from a Dealership Let’s start with buying a car from a dealership (a legal entity). We will not distinguish between official dealers and regular car dealerships that can be found on almost every corner in Germany. Of course, official dealers, by virtue of their status, are generally considered more “reliable” sellers and often offer additional benefits such as extended factory warranties. However, under German law, any car dealer is legally required to provide a warranty (for used cars, it is 1 year) and bears responsibility for the vehicle sold. This means the buyer is legally protected from purchasing a stolen car, a car with undisclosed damages, or a vehicle with tampered mileage. The seller must disclose all known issues (such as previous repairs or defects) before the sale and reflect them in the purchase contract. Another benefit of buying from a dealership compared to a private individual is the possibility of VAT refund when exporting the vehicle. The standard VAT rate is 19%. However, this refund is not always available — for example, if the car was previously owned by a private individual, the VAT cannot be refunded, even if the car is being sold through a dealership. Of course, these benefits are not entirely “free” — you end up paying a higher price for the car compared to buying from a private seller. Features of Buying a Car from a Private Seller So, what are the risks when buying a car from a private individual? Without diving too deep into legal specifics, all transactions between private individuals exclude any guarantee regarding the quality or condition of the car. You’ve probably noticed phrases in many ads stating that the seller “excludes any warranty or liability” after the sale and does not guarantee the completeness or accuracy of the vehicle information. This means you are solely responsible for thoroughly inspecting the vehicle before making a purchase decision. Even if you discover after the purchase that the car was involved in an accident or has tampered mileage, it will be almost impossible to hold a dishonest private seller accountable. In our view, buying from a private seller is only justified in a few scenarios:
If you live in Germany, want to save money, understand cars well, and are willing to accept the risks of no warranty.
If you are looking for a rare vehicle that may not be available from dealers or is significantly overpriced at dealerships.
However, if you’re buying a car for export, purchasing from a dealership is generally a smarter option. The VAT refund can help offset the higher cost, and you gain legal protections regarding the car’s condition and ownership status. It’s also worth noting that some dishonest dealers try to avoid liability by selling cars under a former owner’s or employee’s name. That’s why it’s crucial to carefully read the sales contract — even when buying from a dealership. In any case, given all of the above, we strongly recommend not relying solely on yourself when buying a car. Instead, trust experienced professionals to guide you through the process.
Our company has extensive experience purchasing vehicles from both dealerships and private sellers.