Purchasing a Used 4×4 in Costa Rica

One major pitfall to avoid is to be absolutely certain that you are purchasing the vehicle directly from the actual owner. Your attorney can research the vehicle in the National Registry to determine ownership, liens, unpaid fines, etc.

A common scam is for someone to show you a power of attorney from the owner giving the party with whom you are dealing the authority to sell it. The problem is that the power of attorney may not be legitimate. They guy you’re dealing with may not actually have the authority to sell it. So deal only with the owner.

All terms are negotiable.

The annual “marchamo”, which is paid in December, includes a list of taxes imposed on each vehicle and the legally mandated public liability insurance. The problem is that the limits are laughably low. Additional insurance is not required; however, if you want higher liability limits, property damage coverage, theft and collision coverage, those are obtained from the national insurance monopoly — INS.

There are many who would argue that registering a vehicle in the name of a corporation is not necessary. They’re probably right. Just don’t put it in a corporation that owns anything else such as your real estate.

Someone else on this site , you’ll have to search, commented on searching the pin # of the vehicle online, if the vehicle originated from the US, to determine the mileage when it was sold and transported to CR. The story goes on to say that many dealers turn back the mileage on their cars.

*Scott said it would be OK to post my car for sale on this thread*. It’s a 2006 Nissan Xterra (from the states) that I shipped to CR. It’s a 4×4, automatic, AC, 6 CD changer, tint, alloy wheels, new all-terrain tires V6 off road edition, 23k miles. Great condition, one owner (me). Great car with many upgrades. Asking $29,000 OBO. If interested, please email me privately: Becky at mediatica26@yahoo.com

Here are some answers to the specific questions, for the curious:

Is it reasonable to request that a vehicle be taken to a shop to have a mechanical inspection before the purchase?
This is reasonable, but it probably has to be a mechanic near to where you test drive the car. In the case of a dealer the car might not have tags, and in the case of a private owner the owner won’t have time to go with you and probably won’t want you to take it on your own.

Is it reasonable to pay the vendor a deposit to hold the vehicle prior to advancing all of the funds for the purchase, and if so, how much is reasonable? $200 can hold a car for 15 days at most used car dealers. A private party would want more earnest money and a shorter time frame.

How is the transfer tax calculated, how is it handled, and where and when is it paid?
3.5% of the fiscal value of the car, this includes the lawyer’s fees. You pay it when you sign the documents.

Is it expected that the price of the vehicle will be negotiated?
Not too much room for negotiation, when you are buying a popular make and model. In the case of a dealer, they know the exact market value of the car and have inventory that moves quickly. If you don’t buy it today, someone else will buy it tomorrow or in few days. They are more likely to throw in an extra like a luggage rack or new battery than to drop the price. Often you can ask them to include the transfer fees in their price.

In the case of a private owner, they have probably figured on dropping the price a little, since most people will ask for something off. But we are talking about 50,000 colones or so in most cases. Although this can change if the car needs specific work done. You can normally find out what the part or work will cost and get that amount reduced from the price – if it’s reasonable.

How does one go about checking for vehicle liens or encumbrances?
http://www.registronacional.go.cr/ (Click on the “consultas” button, then look for bienes inmuebles)

Where does a person obtain insurance?
The agent will come to you, either at the dealer or your residence. Most dealers have agents with offices close by if you don’t already have your own agent.

How long does it typically take to purchase a vehicle, have the vehicle transferred, and obtain insurance? Can this be done in a couple of days?
When the car has a permanent plate already you can drive it away from the lawyer’s office. So it is possible to go out looking in the morning and have your car before lunch, if you are organized.
When the car is coming to Costa Rica for the first time, you can do it in 2 days in most cases. You find the car and pay for it the first day, then the dealer takes it through the RTV inspection and gets the temporary tags for you. So you normally pick it up the next day, although during the week sometimes you can pay for the car in the morning and pick it up in the afternoon.

I would stay away from shipping a Dodge Caravan here. Parts and mechanics will be hard to come by and/or expensive.