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Pro Tip: How to Own a Car in Europe

If you find yourself spending ample time in Europe, you may have considered purchasing a car. Unfortunately, unless you are a resident of the country where you purchased the vehicle, it is virtually impossible to register your new steed.

Fortunately, I received a hot tip from a guy named Tommy and learned of a loophole thanks to German Auto Clubs. I worked with Karsten Sonne at Businesscenter-Nord. He is a Danish professional who set up this business originally as a workaround for other Danes who were forced to pay excessive car and motorhome registration tax in their country. So he moved over the border to northern Germany and is providing this and other useful services.

In a nutshell, the Automobile Club holds the title and is essentially the car’s administrator, handling the registration fees, vehicle insurance, and biannual inspections, and paying traffic/parking tickets (it’s not a matter of if, it’s a matter of when). The car’s registration is in the Auto Club’s name, and there is a legal contract signed by both parties stating the vehicle is yours to use. If you decide to sell the vehicle in the future, the Auto Club receives the buyer’s payment and then pays you after any fees are due.

Summary of the process:

  • Select and purchase a new or used car in Germany. (I chose a used car dealer vs a private party.)
  • After payment is received, the Dealer sends the title and paperwork to the Auto Club.
  • The Auto Club creates a legal contract between you and them.
  • The Auto Club asks what type/level of car insurance you desire, and then provides quotes.
  • The Auto Club goes to the “German DMV” and registers the car, then receives German license plates.
  • The Auto Club mails the registration, license plates, and contract back to the Dealer, and you are good to go.

Costs:

  • €200 one-time setup fee
  • Annual insurance coverage paid up front (mine was €1170 and includes roadside assistance)
  • Registration fee (mine was €250)
  • €400 annual administration fee

Karsten was super professional and responsive, and speaks good English. The whole process took about 10 days from purchasing the car to driving it off the lot. It was a very painless and easy process. I’m super grateful to not be paying Hertz anymore and having my very own Alps-mobile.

Ready for another Alps road trip

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2 thoughts on “Pro Tip: How to Own a Car in Europe”

  1. Sweet RAV4 we had one of those back in the day. Ours died an untimely death after a 2 mph rear end collision in the Safeway parking lot. The larger truck hit the spare tire, crushing the back door, breaking the window and bending the door frame. The “bumper” remained untouched.

    The “auto club” workaround is genius.

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