Buying a car abroad: Are you legally allowed to drive?
First things first: check that you are legally allowed to drive in your new country. Having a driving license isn't enough; it also needs to be recognized there. Depending on where you're moving, you may need an International Driving Permit (IDP) in addition to your valid license. Check with the relevant authorities in your home country (for example: United States, Canada, United Kingdom, Australia, France).
For Europeans living in the EU
If your license was issued in an EU country, it's valid for driving anywhere in the European Economic Area (EEA). Just make sure your insurance covers you there. Bear in mind that if your license expires while you're living abroad, it won't be valid in other EU countries either.
For expat couples
Whether you're buying new or used, you can purchase a car jointly. If you do, make sure both names appear on the purchase contract. You'll need to provide the required documents together, including your residence permits and, depending on your situation, a marriage certificate.
Registering your car abroad
The seller must provide documents proving the sale and the vehicle's condition. These are essential for registering it in your name. The process varies by country and, in some cases, by state within the same country. To avoid missing deadlines, research the registration process in advance, whether you're buying from a dealer or a private seller.
The United States: an example
In the US, you register your vehicle with your local Department of Motor Vehicles (DMV). The rules vary slightly by state. In California, for instance, the seller must report the sale within 5 days, and you have 10 days to register the car in your name. Both deadlines run from the date of sale. In Florida, by contrast, the seller has 30 days to report the sale.
New Zealand: an example
The New Zealand government requires that all vehicles be registered before they can be driven on public roads. Registration involves paying a one-time fee to be listed on the Motor Vehicle Register, after which the vehicle receives its number plates. One important distinction: in New Zealand, vehicle registration (which gives you your plates) and vehicle licensing are two separate things, even though the terms are sometimes used interchangeably.
Buying a new car abroad
Some countries, such as the United Kingdom, issue a technical data sheet when you buy a new vehicle. That said, the general documentation requirements are broadly similar across most countries. You'll typically need to provide:
- A valid residence permit: residence card, work visa, long-stay visa, etc.
- Your driving license (plus an IDP if required). Your license is needed to obtain the final registration certificate.
- Recent proof of address: you must have a fixed address in the city where you're living.
What to check before you buy
When buying new, warranties generally protect you against hidden defects and conformity issues. These apply if a fault is discovered after purchase. Note that a "new" vehicle is technically one that has never been registered and never been driven. However, vehicles that had to be registered in order to be imported into the country where they're sold may still be classified as new.
Vehicle condition: to avoid any unpleasant surprises, inspect the vehicle carefully, including its overall appearance, bodywork and interior. Also make sure the dealer provides all the necessary paperwork.
Technical data sheet: verify that the vehicle's name matches its data sheet exactly. Everything should line up: make, type, model, fuel consumption, CO2 emissions, and so on.
Price: the price must be clearly stated and should include any preparation costs before delivery. Find out how pricing works in your host country. Is the price inclusive of tax or exclusive? If exclusive, how much is the tax, and are there any additional charges? The contract should also clearly state your right to cancel within the applicable timeframe, along with delivery information.
Car insurance
You can't drive without insurance. Depending on your situation, you'll need to choose between local and international cover. For example, if you're on a secondment, your home-country insurer may offer temporary international coverage. In most cases, though, you'll end up taking out a local policy. Make sure you understand your host country's rules. The Canadian government notes that car insurance costs depend on several factors, including the driver's age and how frequently the vehicle is used. Keep in mind that rules can also vary by state or province. In the US, for instance, liability requirements differ by state, which is why we strongly recommend working with a licensed insurance agent. An agent can help you find the right policy for international drivers. New York State provides a list of contacts to help you get started.
What to check when buying a used car
The used car market has grown significantly in recent years, but you should still exercise caution. Start by deciding whether you want to buy from a dealer or a private seller. If you go the private route, make sure you fully understand the consumer protection rules in your host country.
Authorities regularly warn that many used vehicles fail to meet safety standards. Always check the vehicle's origin: was it imported, and if so, from where? Does it have a technical data sheet, and is it accurate? The registration certificate details must match the vehicle itself.
How to check a vehicle's history
Fuel consumption, mileage, inspection records, service invoices and maintenance logs are all worth reviewing. Checking a used car's history is crucial to avoiding costly surprises. Carfax, available in multiple languages, offers a comprehensive global database of vehicle history reports. Several countries have also launched their own platforms for this purpose, including Canada, the United Kingdom and France.
The physical inspection should be just as thorough: check the condition of the alloy wheels (repairs can be expensive), tyre wear, bumpers, any signs of previous bodywork, the engine and the odometer reading. Be aware that odometer fraud exists and is treated differently depending on the country, with penalties ranging from minor to severe.
A word of caution on imported vehicles
Just as purchase procedures vary by country, so do the standards that apply to imported used vehicles. A car built for one market may include features that are standard there but absent from another country's version of the same model. This can cause problems during a technical inspection: if the importing country's inspection standards are less stringent than those in your country of residence, the import may be blocked.
