Daniel Klein, legal columnist of the Georgian law firm Klein & Pantsulaia, gives some basics (legal and otherwise) about cars in Georgia. Georgia is a well-known and popular destination for digital nomads, retirees and tourists (see Legal Insights with Klein Law: Renew Georgian Visa with 1-day Departure; Re-Enter for another 365 Days). In terms of tourism, if the local AmCham of Georgia is any bellwether, of its 230 members, 34 of its members are in tourism related businesses. By comparison, in Amcham of neighboring Armenia, about 11 members are in the tourism industry (the authors of this article are members of both). Tourists are attracted by Georgia’s cuisine, wine, value for money, lodging.
Renting a Car
Renting a car in Georgia is straightforward. According to Joe Boccuzzi, an American co-owner of GSS Car Rentals, during peak seasons, you can expect to rent a car for around $50 a day. Many rental companies don’t require a multi-thousand dollar hold on your card; often, $200 in cash is sufficient with private car rental firms. People often confuse International Driver’s Licenses (IDL) with their regular driver’s license. However, most rental companies only require your driver’s license and are not interested in seeing an IDL, as it’s essentially just a translation of the base license and doesn’t confer any additional driving rights. Major international car rental brands have a presence in Georgia, and most companies allow drop-off in different locations for a fee. Additionally, most car rental agencies in Tbilisi permit renters to cross the border into Armenia, with the requirement of purchasing insurance at the Armenian border for a small sum, approximately $10.
As many renters are looking to go into rural/mountain destinations, a lot of the rental cars are off-road, or even offer rentals of tents, sleeping bags and the like to complete a wilderness adventure.
Buying/Selling Cars – New Cars and EVs
Many of the big Western brands do have showrooms in Georgia, but not every brand has a Georgian presence. So those with specific brand loyalty might have no choice but to opt for used.
As with many countries, EV ownership is booming. E-Motors Georgia is one of the recent car salons to enter the market, with an exclusive dealer arrangement with seven Chinese brands, with some having up to eight-year warranties. According to E-Motors Georgia’s Leri Shafta, E-Motors Georgia has cars starting at $10K, one of the top cars, the IM Motors I7, features 23 cameras and 22 sensors, double or more of any Telsa.
Buying/Selling Cars – Used Cars
Foreigners are permitted to own automobiles in Georgia. The main platform for purchasing cars is myauto.ge, or the large open-air used car market in Rustavi, near Tbilisi. When buying from this market, cars are typically sold on the spot, so it’s advisable to bring along your own mechanic for inspection. If possible, Mr. Boccuzzi suggests bringing the used car to a reputable car mechanic shop if possible, such as tuzmotors.ge, for inspection. Many used cars in Georgia were originally purchased at auto auctions in the USA, so it’s wise to check the car’s history using the VIN number. This can be done through a US VIN verification website for about $45, or through a Georgian site for a little over $10. The used car market for popular brands is quite active and fluid, so selling a correctly-priced car usually doesn’t take much time. Repairing cars in Georgia is cost-effective due to markedly lower labor costs. There’s a mini-industry of importing, fixing, and reselling cars, so minor damages are not a cause for concern.
Car Registration
Registering a car in Georgia is quick and easy, similar to real estate transactions in Georgia, which is also extremely user friendly and instantaneous.
Auto Theft Rates
Georgia boasts low auto theft rates, ranking as the 3rd safest country worldwide according to numbeo.com. Despite any lingering reputation from the 1990s, Georgia remains one of the safest cities by all measures, particularly due to the rarity of firearms (US: 1.2 per person; GE .1 per person; France & Germany: .2; Canada: .35). Full insurance is always recommended, though, regardless of the low auto theft rates.
This article was prepared by Klein & Pantsulaia, the only foreign-owned firm in Georgia.
