Buying A Car

Military personnel stationed in the KMC, as well as throughout Europe, have an opportunity to buy a new car at a substantial price advantage. No local taxes are due when you are located outside of the Continental United States, and, if you are eligible, the military will ship it back to the states without charge.

In order to take advantage of this program you must be US Military, a DOD Civilian ID Card holder or a member of a US diplomatic mission stationed outside Continental USA at the time you place your order.

There are a number of dealers that do business with the military, and they are located conveniently for many. Many of the dealers sell exclusively to military customers. There are also car dealerships on the economy that offer new US specification cars as well as cars with European specifications. Many of the local dealers also offer repair and warranty service on both European and US makes and models.

Used cars, both with European and US specifications are also available through local dealerships.

Dealers try to do everything they can to make your purchase hassle-free. You can expect help in the registration, financing and insurance. Without the dealer's help you would have to arrange for proof of insurance and proof of ownership and handle the registration yourself.

There are a wide variety of financing options. Some dealers have their own factory direct financing programs. There are also the banks and credit unions of the military banking system over here, and you even might want to finance the car through your hometown bank. Service Credit Union and the Community Bank both have offices in the KMC. (Phone numbers for local branches are in the phone listings of this Gateway Guide.) Depending on the price, financing can range from 24 to 60 months. The best interest rates are offered when a 20 percent down payment is made. Dealers can give you good advice on this.

Insurance is required. All U.S. Forces members registering a car with the U.S. Forces must have a policy recognized by the host country authorities. German law requires minimum coverage of 2,500,000/7,500,000 Euro for personal injury; 500,000 Euro for property damage; and 100,000 Euro for damages other than personal injury or property.

You prove that you are insured through the presentation of an Insurance Confirmation Card (ICC). Only insurance companies that can provide an ICC can sell the insurance that permits the registration of a car by the military in Europe.

Companies providing such service include Geico, which you can reach toll free in Germany at 0800-100-8687. From other European countries call 0049-631-3109583.

The United States Automobile Association (USAA) also provides auto liability insurance in addition to a variety of other services. It also offers health, property and life insurance, banking services, investment counselling and financial planning. You can call them from land lines in Europe at 00800-824-09250, or visit their website at www.usaa.com. Another car insurance broker with a presence in the KMC is Mirascon (tel: 0800-mirascon). You can visit their website at www.mirascon.de.

There is a great variation in the premiums paid for insurance. Beginning drivers pay more than experienced drivers; those driving big, powerful cars pay more than those with more modest vehicles; those living in urban areas pay more than those in rural areas, and those who have been found liable in accidents pay more than those who haven't.

There is no requirement for a driver to have any but third party liability insurance, but others kinds are available and sometimes advisable. There is full comprehensive, covering all damages or injuries done to your own car, another car or a person or object. There is also partial coverage for fire, theft and other sorts of damage (from break-ins, shattered glass, animals, etc.), and policies covering the death or disability of a passenger. Such policies often have deductibles, meaning you must swallow the cost up to a certain upper limit. These make the insurance less costly.

Many of the dealers (but not the Exchange New Car Sales) take trade ins and handle used cars. These can be a good value if you shop carefully. The dealers normally offer some sort of limited guarantee. Some banks, and even some dealers, may finance used cars, but this is not as easy as with a new cars. Factors such as mileage, age and value are involved.