Car Loan Spain

Need a car and want to spread the cost over time? A car loan in Spain lets you finance your vehicle with fixed monthly payments – whether it’s new or used, from a dealership or a private seller.

You don’t need to be a Spanish citizen to get approved. With the right lender, you can secure financing fast and hit the road without draining your savings.

How to Apply for a Car Loan in Spain

Most car loans in Spain can now be arranged entirely online – no need to visit a bank branch or dealership in person. Digital lenders offer fast approvals, minimal paperwork, and secure contracts with electronic signatures.

Here’s a step-by-step breakdown of how the online application process works, from start to finish.

Steps to apply for a car loan online:

• Choose the lender
• Check your loan conditions
• Upload your documents
• Submit the application
• Get approval
• Sign the contract digitally
• Funds are sent to the seller

Choose the lender

Start by selecting a trusted online lender or financial platform that offers car loans in Spain. Make sure they support foreign applicants if you’re a non-resident. Some platforms also work directly with dealerships to streamline the process.

Use comparison tools or check our list of providers to find one with clear terms, fair interest rates, and transparent fees.

Check your loan conditions

Before applying, use the lender’s calculator or simulator to get an estimate of your monthly payment, interest rate, and loan term. This helps you avoid surprises later.

Look for key details like early repayment options, total repayment amount, and whether the interest rate is fixed or variable.

Upload your documents

Once you’ve chosen a lender, you’ll need to upload documents such as ID, NIE, proof of income, and the car’s purchase agreement or invoice. Most lenders accept PDFs or clear scans.

Some platforms may also request a short video verification or a selfie with your ID to confirm your identity.

Submit the application

With documents uploaded, fill in the online application form. This includes your personal details, employment status, monthly income, and the vehicle’s information (make, model, price).

Double-check all entries before submitting. Errors or inconsistencies can delay approval or trigger rejection.

Get approval

Lenders typically review your application within 24 to 72 hours. You may be contacted for clarification or to provide additional documents.

Approval times vary depending on your profile and the value of the loan. Some providers offer same-day decisions for smaller loans.

Sign the contract digitally

Once approved, you’ll receive a digital loan agreement outlining all terms and obligations. Read it carefully before signing.

Electronic signatures are legally valid in Spain and allow you to complete the process without visiting a physical location.

Funds are sent to the seller

After signing, the loan amount is usually transferred directly to the car seller or dealership. In some cases, the funds may be sent to your account, depending on the agreement.

You can then collect your vehicle and start making monthly payments as agreed.

Requirements for Car Loans in Spain

To get approved for a car loan in Spain, you’ll need to meet certain basic criteria. While exact conditions vary by lender, most banks and financing companies follow the same core requirements.

Typical car loan requirements in Spain:

• Valid ID or passport
• Proof of income
• NIE number
• Spanish bank account
• Car purchase agreement or invoice
• Credit history check
• Proof of address

Valid ID or passport

Lenders require official identification. Foreign applicants must provide a valid passport or national ID card from their country of origin.

Proof of income

You must show that you can afford the loan. This usually means salary slips, tax returns, or bank statements. Self-employed borrowers may need additional financial documentation.

NIE number

The NIE (Número de Identificación de Extranjero) is required for all financial transactions in Spain, including car loans. It identifies you as a legal foreign resident or non-resident.

Spanish bank account

You need a Spanish bank account for loan disbursement and monthly repayments. Most lenders will not process applications without one.

Car purchase agreement or invoice

A signed purchase agreement or dealer invoice is necessary to confirm the vehicle, price, and seller details. The lender needs this to issue funds directly to the seller or dealership.

Credit history check

Lenders will check your credit record, either through Spanish credit databases or international reports. A good score increases your chance of approval and lowers your interest rate.

Proof of address

Many lenders ask for a recent utility bill, rental contract, or empadronamiento certificate to verify your Spanish address – especially if the loan term is long or the amount is high.

What You Need to Know About Downpayments for Car Loans

Many lenders in Spain require a downpayment when financing a car, especially if you’re buying a new or high-value vehicle. The amount varies but typically ranges from 10% to 30% of the car’s purchase price.

A downpayment reduces the loan amount and shows the lender you’re financially committed. This often leads to better interest rates and a higher chance of approval. Some lenders offer 100% financing, but these deals may come with stricter requirements, higher rates, or additional fees.

If you’re buying through a dealership, the required deposit is usually specified in the purchase agreement. For private sales, the lender may ask for proof of partial payment before approving the loan. Always confirm whether the downpayment goes directly to the seller or is included as part of the financing process.

Tip: If you can afford a higher downpayment, consider paying more upfront. It lowers your monthly installments, reduces total interest paid, and improves your loan terms with many lenders.

Interest Examples of Car Loans in Spain

Below is a detailed look at car loan examples based on typical lending terms in Spain. These scenarios assume fixed interest rates, a standard borrower profile, and a minimum downpayment of 20% on the vehicle price.

Car Price	Downpayment	Loan Amount	Monthly Payment	APR	Loan Term	Total Repayment
€10,000	€2,000	€8,000	€244	7.2%	36 months	€8,784
€15,000	€3,000	€12,000	€293	6.8%	48 months	€14,064
€20,000	€4,000	€16,000	€313	6.5%	60 months	€18,780
€25,000	€5,000	€20,000	€390	6.1%	60 months	€23,400
€30,000	€6,000	€24,000	€466	5.9%	60 months	€27,960

Car Price – The total cost of the vehicle, including VAT and registration fees.

Downpayment – The upfront amount you pay yourself, usually 10–30% of the car’s value.

Loan Amount – The financed amount after subtracting the downpayment.

Monthly Payment – The fixed amount paid each month, covering both interest and principal.

APR – The Annual Percentage Rate, including interest and any mandatory fees.

Loan Term – The duration of the loan, typically 36 to 60 months for car financing.

Total Repayment – The total amount repaid over the full loan period, including all costs.

Buying from Dealership vs Private Seller in Spain

When financing a car in Spain, one of the first decisions is whether to buy from a dealership or a private seller. Both options are common, but they impact the loan process and your legal protection differently.

Buying from a dealership is typically easier when it comes to car loans. Most lenders prefer this route because dealerships provide official purchase invoices, warranties, and vehicle checks. In many cases, the dealer can assist directly with the financing paperwork, making the process smoother. You may also get access to promotional interest rates or bundled insurance offers.

Buying from a private seller is also possible but involves more paperwork. You’ll need a signed purchase agreement, proof of vehicle ownership, and a full vehicle history report. Some lenders may refuse to finance older vehicles or require a vehicle inspection before approval. Additionally, private sales rarely include warranties, so it’s important to verify the car’s condition carefully before proceeding.

Used Car Loan Conditions in Spain

Financing a used car in Spain is a common option, but lenders apply slightly different conditions compared to new vehicles. The key factors are the car’s age, mileage, and market value.

Most lenders finance used cars that are up to 8–10 years old at the time of purchase. Some have mileage limits, typically under 150,000 km, to reduce risk. The older the vehicle, the shorter the loan term may be – often capped at 36 or 48 months.

Interest rates for used car loans are generally higher than for new cars. This reflects increased risk and lower resale value. Some lenders may also require a larger downpayment or include stricter approval criteria.

Always check whether the car has a clean registration, no unpaid taxes, and is free of any legal claims. You’ll also need a detailed sales agreement and possibly an inspection report to complete the loan process.

Loan Insurance for Car Loans in Spain (Optional and Required)

When taking out a car loan in Spain, certain types of insurance may be either required by the lender or offered as optional add-ons. Understanding the difference helps you avoid surprises and extra costs.

Most lenders require comprehensive car insurance (“seguro a todo riesgo”) during the loan term. This protects the vehicle – which often serves as collateral – against theft, damage, or total loss. Standard third-party insurance is not sufficient for financed cars unless the loan amount is low.

In addition, some lenders offer or encourage credit protection insurance. This optional coverage helps repay the loan if you become unemployed, sick, or pass away. While not mandatory, it can offer peace of mind if your financial situation is uncertain.

Always read the fine print and check whether insurance costs are included in the APR. You’re usually free to choose your own insurer, as long as the policy meets the lender’s requirements.