Buying a Car in Italy: 5 Surprises That Catch Brazilians Off Guard

Buying a car in Italy may seem straightforward at first glance, but it involves costs and procedures that often catch newcomers by surprise, especially Brazilians who recently moved to the country. Financing, property transfer, and mandatory insurance can significantly increase the final vehicle price, according to research by Italianismo.

Financing with balloon payment: low monthly installment, shock at the end

One of the most common vehicle financing formats in Italy today is the so-called valore futuro garantito, a model in which the buyer pays reduced monthly installments but leaves a much higher final installment — the so-called maxi prestazione — to settle the contract balance.

According to Italianismo, the Bank of Italy issued an alert in 2026 about the expansion of this type of financing in the country's automotive market. According to the alert, about four out of every five cars sold in Italy today are purchased on credit, and a relevant portion of these operations use this elevated final installment model.

In practice, this means the buyer pays attractive monthly amounts during the contract period but must plan to pay off — or refinance — a significant sum at the end of the term. The recommendation from experts cited by Italianismo is not to look only at the monthly installment value, but to evaluate together:

• the required down payment amount;
• the total number of installments;
• the value of the final balloon payment;
• and the TAEG (Tasso Annuo Effettivo Globale), an indicator that brings together the total cost of financing, including interest and fees.

Ignoring these points can lead the buyer to assume a financial commitment larger than imagined at the time of contract signing.

Cost of used car transfer: the passaggio di proprietà

For those who choose to buy a used car in Italy, another cost that often surprises is the cost of property transfer, known as passaggio di proprietà. The procedure is registered with the PRA (Pubblico Registro Automobilistico), the country's public vehicle registry.

According to Italianismo, the total cost of passaggio di proprietà involves more than a simple administrative fee. It includes the IPT (Imposta Provinciale di Trascrizione), the stamp tax (imposta di bollo), and the fees charged by the PRA itself. The final value varies according to the province where the vehicle is registered and engine power, measured in kilowatts (kW).

A little-known detail is that Italian provinces have the autonomy to increase the base IPT rate by up to 30%, which means the same car can have different transfer costs depending on the region of the country. Therefore, the recommendation is always to verify the rate in effect in the registration province before closing the deal.

Beyond the financial cost, Italianismo emphasizes the importance of checking, before purchase, whether the used vehicle does not have restrictions such as liens or mortgages registered with the PRA — pending issues that can complicate or even prevent the transfer.

Mandatory insurance: RC Auto

Unlike what many Brazilians might assume, insurance does not come included in the advertised car price and must be contracted separately, from the first day the vehicle is in the buyer's possession.

In Italy, mandatory insurance is known as RC Auto (Responsabilità Civile Auto), a liability coverage that guarantees compensation to third parties in case of accidents caused by the driver. The contracting and enforcement of this type of insurance are supervised by the IVASS (Istituto per la Vigilanza sulle Assicurazioni), the regulatory body for the insurance sector in the country.

Driving without RC Auto is illegal in Italy and can result in heavy fines and other sanctions, in addition to leaving the driver financially exposed in case of a claim. Therefore, this cost must be included in your planning from the moment of purchase, and not be treated as a secondary item.

Why this matters for Brazilians in Italy

These details gain special weight for Brazilians moving to Italy after obtaining Italian citizenship. It is common for descendants newly settled in the country to underestimate the extra costs involved in purchasing a vehicle, concentrating attention only on the financing installment value or the advertised price of the used car.

Understanding how financing with balloon payments, passaggio di proprietà, and RC Auto insurance work helps avoid budget surprises and plan your arrival in the country more realistically. This type of practical information is part of the daily life of those building a new life in Italy, and more content on the topic can be found in the Life in Italy section of Raízes Italianas.

To follow other developments on economics, consumption, and daily life in the country, the portal also maintains continuous coverage in Italy News.

When considering buying a car in Italy, the practical message is clear: look beyond the monthly installment or the list price. Financing, property transfer, and mandatory insurance together form the real cost of putting a vehicle in your garage — and ignoring any of these items can turn a good deal into a financial problem.

Source: Italianismo