Legal Guide for dealerships

The sale of used vehicles is a highly regulated activity in Spain, especially when conducted professionally. For a used car dealership, knowing and applying the legal regulations correctly is essential to avoid sanctions, conflicts with customers, and damage to the business's reputation.

This guide clearly and practically explains the key legal obligations that a used car dealership must comply with, from warranties to mandatory documentation, including the most relevant regulations and the risks of non-compliance.

Basic Legal Obligations for Dealerships

Registration as a Company or Self-Employed

The first step is to operate legally as a company or self-employed worker, registered with the Tax Agency and Social Security, with the corresponding classification for the sale of vehicles. Additionally, it is recommended to have the correct CNAE (such as 4511 or 4519) to avoid problems with administrations or insurance.

Vehicle Dealer Registration

In some autonomous communities (such as Catalonia, Madrid, or Andalusia), it is mandatory to register in a specific vehicle dealer registry. This registry facilitates administrative control and is required to carry out certain procedures, such as mass registrations or online management.

Clear and Detailed Contracts

Every car sold must have a detailed sales contract that specifies the condition of the vehicle, warranties offered, price, and conditions. This protects both the buyer and the dealership in case of possible disputes. It should also indicate whether the vehicle has suffered accidents or structural repairs.

Data Protection (LOPDGDD and GDPR)

If you collect personal data from customers (in forms, CRM, etc.), you must comply with the Organic Law on Data Protection and European regulations (GDPR). This includes:

• Informing about the use of the data

• Requesting explicit consent

• Ensuring the right of access, rectification, and deletion

• Maintaining a record of processing activities

Legal Warranties in the Sale of Used Cars

Sales to Consumers

When selling to a final consumer, you are required to offer a minimum warranty of 1 year. This warranty covers defects not visible at the time of purchase and that are not a result of normal use. Additionally, if the defect appears in the first 6 months, it is presumed to have existed, unless proven otherwise.

Sales Between Professionals

If you sell to another professional (for example, another dealership), the warranties may be different or even waived, provided that it is reflected in writing. However, it is recommended to offer a minimum warranty to promote healthy business relationships.

Warranty Documentation

This must be provided in writing, detailing the scope, duration, exclusions, and the procedure for enforcing it. Including contact information for claims is essential.

Mandatory Documentation in the Sale

Technical Data Sheet and ITV

The vehicle must have a current technical data sheet and have passed the ITV if applicable due to age. A car cannot be sold without this documentation, unless it is expressly stated that it is sold for parts or without circulation.

DGT Report

It is advisable to provide or facilitate an official report from the General Directorate of Traffic to the buyer that certifies the vehicle's history: liens, fines, ownership, recorded mileage, number of previous owners, etc.

Sales Contract

This must include data from both parties, identification of the vehicle, price, payment method, warranties, delivery date, and special conditions. An annex with photographs of the vehicle and exact mileage can also be included.

Taxes and Fees

The dealership must manage:

• The payment of the Property Transfer Tax (if applicable)

• The ownership transfer fee with Traffic

• Issuance of invoices with itemized VAT if operating under the general regime or the special regime for used goods (REBU)

Relevant Regulations for Used Car Dealerships

General Law for the Defense of Consumers

This regulates the sales conditions and minimum guarantees when dealing with private customers. It requires offering truthful, accessible, and verifiable information about the product.

Environmental Regulations

Dealerships must consider:

• Low Emission Zones (LEZ)

• DGT environmental labels

• Restrictions for cars without labels in large cities

This affects both marketing and inventory turnover. Informing the customer is part of the legal obligation.

Transparency and Advertising

The information presented in advertisements must be truthful and verifiable. It is illegal to advertise a car with characteristics it does not have or with misleading pricing. The use of techniques like "bait pricing" can be penalized for unfair competition.

Civil Liability Regulations

It is advisable, though not mandatory, for dealerships to have professional civil liability insurance that covers errors, claims, or damages arising from their activity.

Legal Tips to Avoid Claims

• Total Transparency: Clearly inform about the vehicle's condition, mileage, inspections, and any known defects.

• Put Everything in Writing: Verbal agreements can lead to misunderstandings. Always document the conditions.

• Good After-Sales Service: Professionally managing any incident protects your reputation and reduces legal risks.

• Civil Liability Insurance: Helps cover unforeseen legal issues or damages arising from professional activity.

• Ongoing Training: Stay updated with webinars, legal advice, or industry associations to be aware of legal changes.

Conclusion

Complying with the law is not an option; it is a necessity for any used car dealership. In addition to avoiding sanctions, it builds trust with customers and enhances business competitiveness.

Being well advised, having updated documentation, and training your team on legal obligations will allow you to focus on what really matters: selling transparently and growing sustainably.

Frequently Asked Questions

How much warranty should a dealership offer for a used car?

At least 1 year if the buyer is a private individual, according to current legislation in Spain.

What documents must a dealership provide when selling a car?

Sales contract, technical data sheet, ITV, tax receipts, invoice, and ownership transfer receipt.

Can a dealership sell a car without ITV?

No, except in specific cases (for parts or without use on public roads), and this must be clearly stated in the contract.

Do I need legal advice for my dealership?

Yes. Having a specialized lawyer or advisor prevents issues and ensures all legal obligations are met.

What happens if I do not comply with the legal guarantee?

The customer can claim, go to Consumer Protection, and even initiate legal actions. Sanctions may include compensation and administrative fines.

Do you want to stay up to date with the legal obligations of your dealership? At Dealcar, we help you manage your business with total legal security and without complications.