Should you buy a car if you have a holiday home in Spain?

Britons with their dream holiday homes in Spain are faced with the dilemma of whether to buy or hire a car to get them around during their frequent trips to Spain.

While hiring a car in Spain seems like the easiest, most hassle-free choice - and Peopleschampion.com can compare the best prices for you - Banco Halifax Hispania looks at the advantages and disadvantages of both of these options:

Hiring a car:

• Avoiding language barriers - When hiring a car in Spain you would avoid any language problems that you may encounter negotiating with Spanish car dealers.  In addition, you can arrange the car hire in Spain from the UK. Check out Peopleschampion.com for the best deal.
• Added convenience - A hire car is ready to pick up when you step off the plane in Spain and is easy to drop off when you decide to leave again.  It is an ideal solution for someone making frequent short trips to Spain.
• Saving money - Hiring a car means that you do not need to pay to garage your car when you are back in the UK and that money is not wasted on road tax when you are away.
• Making use of the extras - If you are hiring a car, you can also request optional extras, such as a child's car seat.
• A waiver fee - As well as the hire costs, it is also highly recommended that you pay a damage waiver fee wherever possible when hiring a car in Spain.  This covers any damage to or loss of a rental vehicle during the hire period.  Although this is an additional cost to consider, it is usually a relatively small amount compared to what you could be faced with in the case of theft of the car, an accident, or even just a bump.
   

Buying a car in Spain:

When buying a car in Spain you should ensure that you obtain the relevant documents and follow the recommended steps:

• Registration document (Permiso de Circulación) - This is the Spanish equivalent of the British registration document.  You must also register yourself as the new owner within 30 days of the car changing hands.
• Registration tax - You will need to pay registration tax (impuesto de matriculación) at 12% of the vehicle's current value in Spain.  However, there are exceptions and vehicles with a petrol-engine capacity of less than 1600 cc or a diesel-engine capacity of less than 2 litres are only subject to 7% tax.
• The ITV (Inspeccion Technica de Vehiculos) - The ITV is the Spanish equivalent of the British MOT, which you need to receive from the previous owner.
• Road tax receipt (Impuesto municipal sobre circulación de vehiculos) - The previous owner should also provide you with a road tax receipt, plus a photocopy.  You will need to continue to pay road tax.  This is obtainable from your Local Authority.
• Transfer tax - You should also be provided with a receipt for payment of the 4% transfer tax.
• Tax on new cars - If you are buying a brand new car from a garage, you will need to pay 16% of its sale price in tax.
• Altering your driving licence - You will need to alter your driving licence, either by having your EU license stamped at the Tráfico office, or by applying for a Spanish license there.
• Get the car insured - You will need to make sure the car is insured once you are the owner.

Banco Halifax Hispania, part of HBOS, provides car insurance services to British expatriates.  Available on Spanish plated cars, customers can choose between third party and comprehensive annual cover.  Any no-claims bonus earned in the UK is also transferable to the car insurance policy in Spain.

The policy provides a 24 hour English speaking accident helpline and includes home start roadside assistance and a free selection of repair garage.  100% of the vehicle's replacement value will also be received in case of the vehicle being written off or stolen within the first two years of registration.

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