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gingrich

Jun 22, 2006, 5:42 PM

Post #1 of 23 (6433 views)

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Auto purchase in Mexico

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We just purchased a house in Puerta Vallarta and wondering if anyone has purchased a auto in Mexico.We were thinking that it would be alot easier to
leave a car there and fly two hours then drive 1300 miles each time we go down.

Rolly


Jun 22, 2006, 6:44 PM

Post #2 of 23 (6425 views)

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Re: [gingrich] Auto purchase in Mexico

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Sure you can buy a car in Mexico. If you have an FM3, you can buy a car in the USA, drive it down, and leave it there. A car bought in the USA will cost a good bit less than the same one bought in Mexico. The USA car does not have to have annual license plates or other taxes, and insurance will cost less than for a Mexican car.

Rolly Pirate

jerezano

Jun 22, 2006, 7:33 PM

Post #3 of 23 (6413 views)

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Re: [Rolly] Auto purchase in Mexico

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Hi,

Rolly's state here in Mexico may be different than mine, Zacatecas, but the law here requires that foreign cars be up-to-date plated and insured.

However, Rolly is right. That law is NOT enforced. Still, it could be at any time. So......

Adios. jerezano.


(This post was edited by jerezano on Jun 22, 2006, 7:33 PM)

RickS


Jun 23, 2006, 1:32 PM

Post #4 of 23 (6340 views)

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Re: [gingrich] Auto purchase in Mexico

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What Rolly said surely applies here at Lake Chapala. The law 'probably' requires one to keep their US plates up to date, but that is not what happens in real life. There are hundreds (thousands?) of cars here with expired US plates. Some folks go the "South Dakota" route and keep plates current.

If I were you I'd find a PV forum and see what the folks that live there have to say on the subject. There aren't many (any?) posters on this Board from PV that I know of.

johanson


Jun 23, 2006, 4:08 PM

Post #5 of 23 (6317 views)

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Re: [RickS] Auto purchase in Mexico

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I have been told by a local attorney here in Ajijic, that I do not need to keep my Texas registration current, and by a friend who works for the local Transito office, that it wouldn't be a bad idea to update my 2004 registration, but that he wasn't sure if it was neccessary.

Heck I do not know what to do. I am not going to worry about it until it is time to buy a new car in the US. My Texas plated 2001 Ford Explorer (purchased in late 2000) only has 17,000 miles on it. And when it is time to return to Texas to buy a new car, I will worry about what to do. Why do I buy cars in the US? Because it is so much cheaper to do so and because the insurance is cheaper for US plated cars here in Mexico than for locally purchased ones.

Well it is time to sign off and have a tripple rum and diet coke, and get some sleep. I just returned from up North and it is good to be HOME. Oh by the way, a liter of gas near Vancouver BC costs about about $1.10. And in WA just south of Canada, I have paid as much as $3.54 US per gallon and as low as $2.979 per gallon. Here in Ajijic, Jalisco, Mexico it is one hell of a lot cheaper

kwschopf


Jun 23, 2006, 6:39 PM

Post #6 of 23 (6284 views)

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Re: [gingrich] Auto purchase in Mexico

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Gingrich, my husband and I moved to Puerto Vallarta a few months ago. We are currently renting in a neighborhood where it is convenient to walk almost anywhere, but have recently bought a home in Bucerias, and so we will need a car. We chose to leave our American-plated cars at home (we sold them, along with almost everything else we owned). Unlike the Chapala-Ajijic area, you will see very, very few US-plated cars in Vallarta. This is an international community, with a diverse population, and few "gringo" enclaves of the type that have been discussed elsewhere on this board. That is one of the reasons we chose Vallarta as our retirement home - no offense intended, just our personal choice.

If you want reliable advice from those who live in PV, there are at least two excellent boards that I consult regularly. I never fail to get a friendly, helpful answer when I ask questions. They include:
http://allvallarta.com/
http://vallartascene.com/
As a final note, I remain mystified by the insistence of those who live in the Chapala area on driving US-plated cars, even those who clearly have adequate resources to pay the modest additional costs. We are grateful that the local people we have met have welcomed us into their country and community with open arms. We feel some obligation to contribute to the local economy in terms of car purchase, taxes, fees, etc. We pay no income tax and very little property tax here. At the same time, there are obvious advantages, like being less likely to get pulled over by the policia. I am not intending to insult anyone with these comments, it just seems to us that since we are calling Mexico our "home" that we should make the transition complete. Karen

johanson


Jun 23, 2006, 9:06 PM

Post #7 of 23 (6246 views)

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Re: [kwschopf] Auto purchase in Mexico

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You wrote that you remain mystified by the insistence of those who live in the Chapala area on driving US-plated cars. And I say with a smile, that the first thing I did was to try to buy a new Ford Explorer per specifications I got on line from Ford USA, at a dealership in Guadalajara. What a costly error that would have been. When I went to the Guadalajara dealer, I found that I would be paying 25% or more than in Texas, and that the actual model I wanted wasn't available to purchase in Mexico, and that the sales tax was 15% in Mexico instead of I think 7% or so when buying same in Texas. There's more disadvantages. I'll mention only a few. The yearly tabs were about $73 US in Texas and as I recollect Tenencia is about 10 times that much higher in Jalisco on an new expensive SUV. And how about insurance? The last time I checked, it was quite a bit cheaper on a new US plated SUV than on a Mexican plated one. Ok. You talk about wanting to buy in the Mexican market, especially if as a result thereof you would be distributing profits to the average local. The only auto dealer I know from Guadalajara, is richer than you can believe, you know one of the super rich who has a home in PV, Ajijic, Guadalajara, I could go on. His friend told me that one of the reasons cars are so high in Mexico, is because, the dealers don't have to discount them. The neighbor further explained because all of the dealers agreed not to discount the new cars, they all made a better profit. Some people consider that price fixing.

I prefer to purchase where things are cheaper, and use the money saved to live higher on the hog here in Mexico. By doing so I distribute these extra dollars, not to the few very rich, but to those middle class business persons whom own those small stores restaurants, that I now get to go to more often.



bbeitz


Jun 24, 2006, 6:10 AM

Post #8 of 23 (6217 views)

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Re: [johanson] Auto purchase in Mexico

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"The neighbor further explained because all of the dealers agreed not to discount the new cars, they all made a better profit. Some people consider that price fixing."

Pete, your local real estate friends fix real estate commissions at 7% plus charge an additional 15% to cover their own IVA for a whopping 8.05% commission. I believe you participate in that, why do you suggest we single out the car dealers? Let's hear it for price fixing.

bbeitz

It is better to be thought a fool than to open ones mouth and remove all doubt.

kwschopf


Jun 24, 2006, 7:46 AM

Post #9 of 23 (6197 views)

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Re: [johanson] Auto purchase in Mexico

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Pete, I absolutely respect your decisions. I am not suggesting that you are doing anything wrong, and you present a reasonable point of view. I know that you and your friends Lakeside do a great deal (even aside from the money you spend) to support the local community. I think we are just coming at this from a different perspective. Having retired as a university administrator and having spent most of my working life in the public sector, I have a keen sense of the value and purpose of tax revenues. I have no desire to enrich the coffers of the states of Texas or South Dakota (where I do not use any services). I would rather contribute my sales taxes and fees to Mexico (and I have no illusions about the intentions of Mexican public officials - this is a matter of principle). I am one of those silly people who does not mind paying taxes, because I know what they pay for, including my salary for the past 30 years and my retirement pension. This difference between us is exemplified by our situations: you own several high end properties in Ajijic and we are buying a fixer-upper in Bucerias. But hey, we are both happy and we both bring some value to our respective communities. My comment about US-plated cars really has less to do with money and more to do with living in Mexico. We are living here for many reasons, but mainly because we have a deep affection and respect for the Mexican culture and people. We see no purpose in maintaining any ties with the US. My son teaches in international schools - he and his family are currently living in China. My daughter and son-in-law will join us here when they can figure out how to manage it financially. This is mainly a "different strokes" issue, I think. Karen

Bubba

Jun 24, 2006, 9:05 AM

Post #10 of 23 (6180 views)

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Re: [bbeitz] Auto purchase in Mexico

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Well, Bbeitz, one does not have the choice of bringing in real estate so participating in a "fixed" comission real estate market is a choice. One can buy directly from a seller or use a real estate agent but, despite the manipulation of commission income, real estate agents are convenient for most people - especially newcomers not familiar with the local real estate market.

By the way, this is a problem generally centered in areas with large foreign enclaves. In much of Mexico, real estate is not bought and sold through real estate agents but by word of mouth.

As one who bought his 2004 Nissa XTrail in Guadalajara and paid the local premium plus IVA plus tenencia annually, I went a different route than Pete. In 2004, the XTrail was not sold in the U.S. but, I must admit that I wanted to buy a car down here for non-financial reasons. From a financial point of view, Pete is 100% right. It makes no sense to pay the price premium, IVA (included and "hidden"in the price) and tenencia fees here when one can get a much better deal in Texas. In addition, Pete is right about the fact that successful dealers in Mexico tend to be filthy rich and don´t really need our help at all. So, why did I buy a car here? Damn if I know. We never return to the U.S. unless we have to so prefer to shop here when possible even when it costs more (although we drew the line at paying $900USD for a digital camera here that costs $250USD in the states). We also like having a locally plated car and, I must say, we got several trumped up traffic tickets in our California plated car and have had no problem in the two years we have owned a Jalisco plated car. That could just be a coincidence.

The posts here regarding the need to have current U.S. registration on one´s U.S. plated car just keep popping up. If you FM-2 or FM-3 is current your expired registration is OK and you will not be hassled. People just don´t want to believe that but it is true. Better to have expired U.S. registration from your home state than drive around having people think you are some South Dakota hayseed who, like Dumb and Dumber, took a wrong turn somewhere in Nebraska and is driving around Mexico going, "Godawlmighty, they sho is a whole lot o´them illegals livin´here in Kansas!". It is also only time before South Dakota clamps down on this practice.


(This post was edited by Bubba on Jun 24, 2006, 9:11 AM)

sfmacaws


Jun 24, 2006, 9:27 AM

Post #11 of 23 (6167 views)

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Re: [Bubba] Auto purchase in Mexico

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I have to admit that one of the reasons I haven't changed my plates to match my mailing address at the Escapees RV club in Texas is that I simply cannot make myself drive around with Texas plates, it's just the Calif in me I guess. I wouldn't have that problem with SD though, I don't think there are enough SDans or enough people who have actually been in SD for most people to have any opinion at all - except maybe that it is cold. If I do give up Calif domicile it will have to be to SD.

As to their cracking down on it... I don't think so. They are making money, with little or no hassle and they have a steadily growing business among fulltime RVers which is a growing group filling up with Boomers. This group is being actively courted by states such as Montana with cheap, easy LLC's for low tax purchasing of RVs. There are ads and even billboards about it in places with a lot of RVs - mainly the soutwest in the winter. Texas seems to have come around and is recognizing the benefit of these relatively affluent retirees calling their state home. When the average fulltimer pays more for an RV than the average cost of a house in most of the country, there is plenty of reason to want them to call your state home.

Jonna - Mérida, Yucatán

Bubba

Jun 24, 2006, 9:48 AM

Post #12 of 23 (6157 views)

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Re: [sfmacaws] Auto purchase in Mexico

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Just for clarification, I didn´t mean that they would clamp down on RVérs but on Mexican residents claiming U.S. residency. I beleive they will clamp down because of all this home security nonsense. There is no reason a wandering RV´er shouldn´t claim any state. It´s us sodbusters, not the gypsies who may be in for future problems.

I hate to admit it but I agree with Jonna that trading in a California plate for a Texas plate is just too traumatic. People might just think we actually are from Texas and what could be more humiliating than that? Better to have Idaho plates and drive around advertising "Famous Potatoes".

gingrich

Jun 24, 2006, 12:58 PM

Post #13 of 23 (6129 views)

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Re: [gingrich] Auto purchase in Mexico

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All right all ready, sorry I asked such a stupid question. this is my first and LAST time I'll use this crazy forum...rolly can I have my money back???????

jennifer rose

Jun 24, 2006, 1:13 PM

Post #14 of 23 (6123 views)

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Re: [gingrich] Auto purchase in Mexico

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I'm sorry that the answers to your question were derailed by discussions of immigration status, RVers, and real estate commissions.

Yes, plenty of foreigners have purchased cars in Mexico. It's not hard.

Bubba

Jun 24, 2006, 2:34 PM

Post #15 of 23 (6111 views)

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Re: [jennifer rose] Auto purchase in Mexico

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gingrich´s question was answered. The little asides posted here did not detract from those answers. He/she was told that, yes you can buy your car here and one will pay relatively more for the same car here than one would in the U.S. generally speaking. What the hell is complicated about that?

gingrich is "sorry" for having asked such a stupid question. Well.,, yes, since you said it gingrich, it was kind of a dumb question but no one insulted you or put you down for it. You might want to grow a thicker skin before you move here.


(This post was edited by Bubba on Jun 24, 2006, 2:56 PM)

jerezano

Jun 25, 2006, 9:59 AM

Post #16 of 23 (6038 views)

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Re: [Bubba] Auto purchase in Mexico

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Hello,

Bubba is right, as usual, on "no hassle" about expired USA plates on foreign plated vehicles---in apparently all locations except Puerto Vallarta. Look for posts on that subject here on the forums.

Still, the law in most locations is that all foreign plated vehicles mujst be current and the vehicle insured for México. Here in Zacatecaas I think my car and those of a few other gringos here were the only ones I ever saw with current plates except during Easter and Christmas vacations.

Adios. jerezano.

Bloviator

Jun 25, 2006, 10:43 AM

Post #17 of 23 (6024 views)

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Re: [jennifer rose] Auto purchase in Mexico

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If it weren't for the little asides, there would be nothing to talk about. All that would have to happen is for someone to pose a question and the next person to say look it up in the archives. Next question please.

Everything we talk about has been covered over and over. The asides make for some interest as we plow the same acreage over and over - While the same things are covered over and over, occasionally there is some new insight presented, so it is definitely worthwhile.

JohnnyBoy

Jun 28, 2006, 3:31 PM

Post #18 of 23 (5939 views)

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Re: [johanson] Auto purchase in Mexico

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Johanson,

I submit that your insurance is cheaper because you have a US domicile and can buy US auto insurance. If you were like others of us and did not have that advantage and you had to buy Mexican auto insurance, would it be that much more expensive? Would it be any good? Would you do it?

I suspect most expats in Mexico who are not able to buy US auto insurance do not drive cars in Mexico that are terribly valuable, much like the Mexicans do. Most of them do not have insurance, and when the car gets too banged up to drive any more, they junk it and start over. Is that not correct?

Well, you are probably snoozing now. Diet Coke? Jeez Louise. What a waste of rum. :)

jb

Gringal

Jun 28, 2006, 3:46 PM

Post #19 of 23 (5932 views)

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Re: [JohnBleazard] Auto purchase in Mexico

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We bought Mexican auto insurance over at Lloyd's for the '99 Toyota pickup with the expired CA plates that we're driving around in. We're carrying liability and theft. It's costing around $400 a year. We're not planning to take it back to the states. We plan to drive it till it drops and is beyond even the revival skills of a Mexican mechanic.

Bubba

Jun 28, 2006, 4:16 PM

Post #20 of 23 (5924 views)

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Re: [JohnBleazard] Auto purchase in Mexico

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John:

Actually, that is not the case. If you live down here and have no U.S. address but drive a U.S. plated car, you carry local insurance coverage defined as tourist coverage and that is the coverage you have even if you are here for the rest of your life. "Tourist " auto insurance on a U.S.plated vehicle for full time Mexican residents with no U.S. address is cheaper than insurance on a comparable Mexican plated car for the expat. U.S. insurance on a U.S. plated car is invalid in Mexico, Period,

johanson


Jun 28, 2006, 4:30 PM

Post #21 of 23 (5918 views)

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Re: [JohnBleazard] Auto purchase in Mexico

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OK confession time. I'm talking about my experience from the past. I bought a brand new 2001 Ford Explorer Sport in the fall of 2000. I am speaking from my experiences then. I talked to other folks who have done the same in more recent years and they seemed to have the same experiences.

This car is getting kind of old and it's almost time to buy another one, it has 16,600 miles on it. Smile

As far as my Rum is concern. Most folks know that money is not a problem for me, luckily I have too much. I choose the rum that tastes best to me when mixing with my diet rum. And the prices have recently dropped. I just paid $48.20 for a standard sized 750ml bottle of imported rum from I think Honduras. It's called Ron Castillo Cohiba Anejo. (I don't have the ~ for the n) at 11.4 pesos per dollar, you know I have good taste, that works out to $4.23 US per bottle. The trouble is, that my favorite Champagne Andres, costs a fortune down here, sometimes 70 pesos per dollar. And you can tell by the fact that I know Andres is real champagne, that I have very good taste.

MazDee

Jun 28, 2006, 7:35 PM

Post #22 of 23 (5889 views)

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Re: [johanson] Auto purchase in Mexico

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You are mixing Diet Cola with your expensive Rum. Yuck. How about just a little water and ice and a squirt of lime? Yum.

johanson


Jun 28, 2006, 9:09 PM

Post #23 of 23 (5867 views)

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Re: [johanson] Auto purchase in Mexico

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Gee, I wish I could go in and make changes more than two hours later. I would change the word concern to concerned and and I would change "70 pesos per dollar" to "70 pesos per bottle". Oh well. I wrote that before my rum and cokes, and only caught the errors while under the influence. So much for being sober.
 
 
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