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Is that difficult to buy a new car in CR, is title,registration and “merchamo” is included in a price when you buy a new car?
Do we need Spanish speaking person with us (our Spanish is far from good) to lower the cost?
Some people and books suggest that it is more beneficial to buy a car under CR corporation name?
What are the benefits? Please advice.
Thank you all so much in advance.expect to pay nearly double for that car over what it would cost in the States. people hold their cars in a corporation to limit liability and it’s never a good idea to have your house and car in the same corp.
maravilla is right on all counts. In addition to limiting your liability, having the car in a corporation makes it simpler and cheaper to sell when the time comes. There is no new transfer tax since the car never leaves the corporation. You just get the attorney to make an entry in the corporate books, sign off on the share certificates, and you’re done.
When you pick up the car, the dealership will have begun the process of obtaining your license plates and all the necessary fees will have been paid. The car will have been inspected by Riteve, too. Getting the plates may take a couple of months, but you’ll have a temporary placard for the windshield.
There is only one dealer for each brand of vehicle imported to Costa Rica. You can try to bargain the price but you won’t get very far. Having a Spanish-speaking interpreter probably won’t save you very much.
The annual marchamo includes the legally required (and ridiculously low) public liability insurance. No collision, comprehensive, theft or property damage insurance is included. If you want those or extended public liability, INS, Mapfre and maybe others can sell them.
Too, consider having a LoJack auto locator installed. They (the LoJack folks) say they’ve never lost a car. True or not, you’ll qualify for a major discount on the theft portion of your optional insurance coverage which will pay most of the annual LoJack cost.
I don’t see much benefit to holding title to vehicles in a corporation provided you’re adequately insured. I do agree that it’s better to hold title to real estate in a corporation, not only to protect against liability but because it’s much simpler and less expensive to transfer title when you sell.
As for cost, I think you’ll find that its less expensive to buy a new car here than to buy in the US and ship it down after you consider all the costs of shipping, customs and title charges. Most but not all of the new car agencies are fairly cost competetive, with numerous promotions, financing offers, etc.
That being said, I don’t recommend buying or driving a new car here. You’re much better off buying a good used car. If you shop around and aren’t in a rush, you can find good deals and save money. With the high incidence of car theft, the condition of the roads, and the number of accidents, to me its just not worth paying the price of a new car with such a high possibility of damage or loss.
Since you don’t speak much Spanish, one place to start looking is Costa Rica Craigslist. Google will take you to the website. They usually have a fair number of good, late model used cars for sale. Most of the sellers are Gringos and the ads are in English. Some are in process of leaving the country and must sell quickly for the best offer they within a limited period of time. I wouldn’t normally consider buying a used cars from a dealer. They are almost always overpriced and you’ll usually do much better with private sellers.
There are exceptions, however. I’ve bought a couple of used cars here from dealers with deep discounts, far below open market prices. However, I’m fluent in Spanish, have lived here for more than 10 years and am culturally integrated in to Costa Rican society, with a wide network of friends and family, many of whom are involved in or have very good contacts within the used car market.
Remember, in Costa Rica, prices are always negotiable. You should expect to negotiate discounts of 20% or more on almost all asking prices. Ticos sometimes ask almost double the price they actually expect to receive.
While used cars are generally a better deal than a new car in the US you have to be more wary in CR. Many used cars in CR are from the US and may have been in floods, totaled or very high mileage. If the car has been totaled in the US and had insurance on it then you SHOULD be able to get a report on it on-line. You may also find the actual mileage or accident information. It is very common in CR to turn back odometers, a practice that is now unheard of in the US because jail time is involved if one gets caught.
AND despite the way things seem in CR they do VERY GOOD auto body repair and can rebuild a “total” so that it is nearly undetectable. While this is done in the US as well, higher labor rates result in details being overlooked that can often be detected by anyone with a sharp eye for inconsistencies.
Also remember that there is a LOT of very rough rural road in Costa Rica that is worse than anything found in the US for over 50 years. Suspension takes a beating and what is a low mileage used car in the US can be a completely worn out car in CR.
So, if you are buying a used car in Costa Rica be wary, do your homework, get on your hands and knees and look underneath, test drive it. If the car doesn’t feel right, has more road noise than you expect. . . then it may be one to avoid. Your best bet on a used car in CR – What you would consider a “beater” or “clunker” in the US.
And lets not forget that the model of car imported to CR from the manufactuirng country is not the same as the model they send to or build in the US. The safety standards are very different. If you never leave San Jose, you may be able to get away with a car, but otherwise you really need an SUV or truck, with a stouter suspension. No wonder the extended cab 4X4’s tend to be the most expensive for what you get, especially the Toyota HiLux.
[quote=”grb1063″] If you never leave San Jose, you may be able to get away with a car, but otherwise you really need an SUV or truck, with a stouter suspension. No wonder the extended cab 4X4’s tend to be the most expensive for what you get, especially the Toyota HiLux.[/quote]
And yet the vast majority of Costa Ricans drive small, mostly Asian, sedans. Howcomeisthat?
[quote=”grb1063″]Maybe because a new, large SUV or Truck is over $50K and a used Hyundai Accent is $4K.[/quote]
Well, that’s a compelling economic analysis, but what explains the fact that so many folks get around just fine in them on the fabled Costa Rican roads? That has nothing to do with cost.
By the way, have you priced a new large SUV or truck lately. If you find one for $50K I’d be interested to learn of it.
Don’t forget that if you buy new here you get the warranty. If you buy in the States and ship – good-bye warranty.
If buying used I would look for American versions with more protection.
In addition, I agree with Jim who said not to buy new – sort of. If you can afford to spoil yourself then go ahead, I did. I bought semi new in the US (Honda CRV with 5K on it) and had it shipped here.
One – I have never needed to use the warranty on any of my Honda or Toyota vehicles
Two – it comes with a side air bag curtain and reinforced steel doors with steel beams that way a ton.
I also got a larger selection of interior and exterior colors and other nice options.
Things to consider. Here if the airbags go off many times they total the car because of the high cost of replacing the air bags.
The salvage cars are bought and repaired – without replacing the airbags. So if you buy used you never really know if the car has airbags in it, unless you search to see if the car has been in an accident.
Driving an expensive car here is great; the ride on these bumpy roads and the overall comfort and performance rock! However:
Insurance is a fortune
Marchamos are expensive.
and the animals who drive here have zero respect.
My car already has door dings and has been hit by the biggest beast drivers here: the Taxi cab drivers.
BTW the police here have little sympathy for Gringo involved in an accident with Ticos. Now I asked to have an alcohol test done on the Taxi driver who basically looked like a crack head. The cops know what kind of stiff punishment is involved and not wanting to harshly punish his compatriot he did not give him the test.
So I am ambivalent about my new car choice to tell you the truth. I love and hate it.
This is one of the huge drawbacks to living here IMO because I have always had nice cars and kept them clean and shiny and enjoyed that. Here, you cars get real dirty real fast.
Once a week washing in the states. In the winter here, I have my guy wash my car every other day!
Also I wouldn’t trust any local mechanic with my new car. Just the idea of a grimy unmannered Tico mechanic being in and out of my new car sickens me.
Therefore, its dealer only – and you know what that means: $$$$
So you decide: Comfort, safety and performance
and
extra maintenance
high licensing fees
high insurance
bad roads
animal ass drivers etc etcIt’s a high cost, but if you are prepared emotionally and financially, well all I can say is I went for it – And I Love it and Hate It.
Go figure…
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