Index
Basic vehicle documentation: what must be present from day one
What documents the transaction generates depending on who sells
Buyer's documentation to close the sale
Additional documentation if there is financing
Documentation if the buyer trades in a vehicle as part-payment
The five most common blockers in the transfer of ownership
Dealcar and managing files with all documentation organised
Frequently asked questions
Basic vehicle documentation: what must be present from day one
Before advertising a car and before promising delivery times, there are three documents that must be located and in order.
The registration certificate (permiso de circulación) and the MOT card (technical specifications sheet/tarjeta ITV) are the documentary base of the vehicle. They identify the car and its status to be driven. If either of the two is missing, a duplicate must be requested before making commitments to the buyer, because that process can take days.
A valid MOT is a necessary condition for the DGT (Directorate-General for Traffic) to process the transfer of ownership. If it has expired, the buyer will have to pass it before being able to register the vehicle in their name, which can become a price negotiation argument or a hurdle to closing the deal if not managed properly.
The DGT vehicle status report is the document that prevents the most problems. Before closing any transaction, it is advisable to request the complete report to check for any embargoes, sealings, administrative charges, or sanction blocks. The cost of the report is minimal. The cost of discovering the charge after signing the contract is much higher.
Lastly, the IVTM (municipal road tax) must be up to date for the previous year. The DGT requires that there are no debts on this tax to process the transfer. For cars that have been stationary for a while or come from private individuals with a history of non-payment, it is worth verifying.
What documents the transaction generates depending on who sells
The type of documentation that must accompany the transaction varies depending on whether a dealership is selling or if it is a transfer between private individuals.
When a dealership sells, the buyer must receive the invoice or the dealership's purchase and sale document, the sale agreement with the terms of the transaction, and the warranty documentation with clear and readable conditions. Handing over a delivery document with the vehicle's condition, mileage, included accessories, and the second set of keys if available is also a good practice that avoids subsequent disputes.
When the transaction is between private individuals, before the transfer of ownership, proof of payment of the ITP (Property Transfer Tax) or its exemption must be provided using form 620 or 621, depending on the autonomous community. This is where there are the most regional differences: the tax rate, deadlines, and the way to file the tax vary between communities. The buyer or the agency must verify the specific conditions of the autonomous community where it is taxed.
Buyer's documentation to close the sale
The buyer must provide a valid DNI or NIE, contact details, and a notification address. If co-owners are going to appear on the contract or if a company is buying, this must be defined before preparing the documentation: a contract that has to be redone because of a missing signer delays delivery and creates friction with the customer.
If the buyer is a company or a sole trader, the entity's CIF is also required and, in the case of companies, the documentation proving who has power of attorney to sign on behalf of the company. For company cars, the fleet manager or the authorized signatory must be identified before preparing the contracts.
Additional documentation if there is financing
When the transaction includes financing, the finance company requests additional documentation to assess the applicant's creditworthiness. The documents that need to be ready vary depending on the buyer's profile.
For an employee: valid DNI or NIE, the last three payslips, the employment contract or employment history report, the bank IBAN, and in some cases the last tax return. For a sole trader: the CIF or DNI, the quarterly VAT and personal income tax (IRPF) returns for the last four quarters, and bank statements for the last three months. For a company: the CIF, the latest annual accounts filed or the most recent Corporation Tax return, and the documentation of the representative signing.
Having this documentation ready before submitting the application reduces approval times and prevents an incomplete application from unnecessarily prolonging the closing.
Documentation if the buyer trades in a vehicle as part-payment
When there is a vehicle being traded in, it is advisable to check its documentation before closing the transaction, not after.
The documents of the incoming car: registration certificate, MOT card, and the DNI of the owner registered with the DGT, which must match the buyer or the person authorizing the transaction. If there is a second set of keys, it is noted down. If there is a documented maintenance history, it is registered as added value.
The most important thing in a trade-in is to check for outstanding charges before accepting it. The DGT report of the trade-in vehicle avoids taking on an embargo or a pending reservation of ownership that could later block the transaction.
The five most common blockers in the transfer of ownership
Active retention of title. If the car has active financing with a retention of title clause (reserva de dominio), it cannot be transferred until it is cancelled. The process requires requesting the cancellation letter from the finance company and cancelling it in the Personal Property Registry. If not detected before signing, the buyer could wait weeks or months.
ITP not filed or filed with errors. The DGT requires proof of payment of the ITP (or its justified exemption) before processing the transfer of ownership. An error on the form or filing it in the wrong autonomous community blocks the process.
Vehicle temporarily declared off-road. A car that has been temporarily declared off-road (baja temporal) cannot be transferred until it is put back on the road. This is a blocker that many buyers discover at the time of the transaction if it hasn't been checked beforehand.
Unpaid IVTM. If the municipal road tax for previous years has an outstanding debt, the DGT will not process the transfer. The seller must settle the debt before the buyer can make the change to their name.
Missed 30-day deadline. The DGT sets a maximum period of 30 days from the signing of the contract to carry out the transfer of ownership. If this period is exceeded without having processed the transfer, the contract must be modified. In transactions managed by an agency, this deadline is rarely an issue. In transactions where the buyer handles the process on their own, it can drag on without anyone managing it.
Dealcar and managing files with all documentation organised
A dealership loses time and credibility when each vehicle's documentation is scattered across WhatsApp, loose folders, and emails. When the time for delivery comes and a paper is missing, the buyer senses disorganisation even if the car is perfect.
With Dealcar, every vehicle has its own file with all associated documentation: purchase documents, expenses, vehicle status, contracts, and invoices. The sales team knows at all times which documents are complete and which are missing before making a commitment to the buyer. If you want to see how it works, request a demo at dealcar.io.
Frequently asked questions
What documentation does a dealership need to buy a car from a private individual?
The registration certificate, the MOT card, the seller's DNI, and a receipt or purchase contract proving the price paid. That receipt is the proof that allows the Special Scheme for Second-Hand Goods (REBU) to be applied on the resale if the seller is a private individual who cannot charge VAT.
How much time is there to carry out the transfer of ownership?
The DGT sets a deadline of 30 days from the signing of the sale agreement. If that period is exceeded, the contract must be modified in order to process the transfer.
Is a basic DGT report enough or do I need to request the complete one?
For a professional trading transaction, the complete report is recommended. The basic report shows the current owner and vehicle details. The complete report also includes the history of owners, administrative charges, and outstanding sanctions that could block the transfer.
What happens if the car has a retention of title that the seller didn't mention?
The retention of title appears on the complete report from the Personal Property Registry. If the dealership buys without verifying it and later discovers the charge, they have to negotiate the cancellation with the seller or assume the cost of the process. The best protection is obtaining the report prior to purchase.
Does the buyer or the seller pay the ITP?
In second-hand vehicle transactions between private individuals, the ITP is paid by the buyer. In sales from a dealership to a private individual under the REBU scheme, the VAT is already included in the sale price and there is no additional ITP for the buyer.
