Forums > General > Living, Working, Retiring

MommaJ

Jul 22, 2003, 6:59 PM

Post #1 of 14 (845 views)

Shortcut

Buying a Car in Mexico

Can't Post | Private Reply

Hello,

We are finally moving into our house in MX and my husband's company has purchased a car for him, but I'm still car-less but quickly realizing that I will need one, especially when my daughter starts school next month and for getting myself to SP classes, shopping etc.

We have heard conflicting info on how to purchase a car here. Can it be done, if so can you take out a loan at a "reasonable" rate. Can you lease a car like in the US or do you have to purchase it outright with cash.

If we can lease one where should we inquire, if we can get a loan, should we just go to the bank or as the Company to intercede on our behalf??????

Thanks for any advice you can give us. - Momma J

jrice

Jul 23, 2003, 8:55 AM

Post #2 of 14 (811 views)

Shortcut

Re: [MommaJ] Buying a Car in Mexico

Can't Post | Private Reply

It has become increasingly easy to buy a car in Mexico. Most dealerships offer credit at reasonable rates, and they will often offer specially low interest rates if you buy a car at the end of the model year.

The payment period is usually two to four years. Insurance is usually included with the payments.

One thing: Most inexpensive cars here have manual transmissions.

I don't know what sort of special guarantees or arrangements they might need for sale to a foreigner. Perhaps a local bank account?

A few examples of offers from Saturday's Reforma in Mexico City:

Nissan Tsuru (very basic model) : 87,500 pesos full price. Payment plan of 33 percent down, monthly payments of 1,635 pesos -- but with an additional payment of 7,632 pesos each december (sounds odd to me)

Nissan Platino: 93,000 pesos. Payment plan similar to the one above.

Rover 75: US$35,000

Honda Civic Sedan: 3,675 a month for three years, with 50 percent down (doesn't say how much that is)

Honda Accord sedan: 4,657 a month for three years (similar to above)

Ford Focus: 35 percent down, zero percent interest for 20 months (no figures)

Ford Fiesta: From 1,553 a month with 35 percent down (no figures)

Chrysler is offering zero percent down, zero percent interest on a number of models.

Reforma has an automotive section each saturday which has a page with the list prices of nearly every car available new in Mexico.

MommaJ

Jul 23, 2003, 12:22 PM

Post #3 of 14 (786 views)

Shortcut

Re: [jrice] Buying a Car in Mexico

Can't Post | Private Reply

Thanks for the info. Should I just go to a dealership and start looking and get some quotes or go the bank and try for the loan first or how should I start? Would it be easier if the company helped me out since they are established locally? - Momma J

gpk

Jul 23, 2003, 3:00 PM

Post #4 of 14 (775 views)

Shortcut

Re: [MommaJ] Buying a Car in Mexico

Can't Post | Private Reply

The "reasonable" interest rate is about 16% or worse. It will be difficult if not impossible to qualify for financing if you are both Gringos--but check anyway--things change all the time. Banks offer loans, but they are very tough to qualify for even if you are a Mexican citizen. Dealership financing is your best bet. Finally--be very careful if you decide to go for a used car--a Mexican friend bought a used car that turned out to be stolen--and he's a LAWYER! Buy a used car ONLY from a dealer, not an individual, and have a lawyer/notario check the papers before you pay. Finally--you might be better off buying in the US and driving the car here with your FM3 Visa--especially if you stay in Mexico is not permanent.

jrice

Jul 23, 2003, 3:27 PM

Post #5 of 14 (770 views)

Shortcut

Re: [gpk] Buying a Car in Mexico

Can't Post | Private Reply

I agree about the dealers being the best bet.

One reason is that the car companies will play with the interest rates to make cars attractive before they will lower prices. We bought a Ford Ka late last year at an interest rate of about 5-6 percent. It was the 2002 model, but brand new. The interest on the virtually identical 2003 model was about 16 percent. Some other places also offered us very low rates, but with larger downpayments.

Note that some car companies are offering zero percent financing, usually if you make a large downpayment. The Chrysler offer would seem to be worth investigating, if only to see where the catch might be.

The Ka, by the way, is a very small car, but a big bigger and heavier than it looks. Its main advantage is that it has a relatively high ground clearance and eats topes that have other cars stopped dead in the road.

jennifer rose

Jul 23, 2003, 6:47 PM

Post #6 of 14 (762 views)

Shortcut

Re: [gpk] Buying a Car in Mexico

Can't Post |

GPK's given you a good suggestion about driving a foreign-plated car if you're able to do so under your immigration status. No one else has addressed that approach. I'd recommend it as something to consider while you're still getting your bearings in Mexico and particularly if your stay is not likely to culminate in inmigrado status. In Mexico, the annual registration fees for a late-model car are much higher than in the U.S.

FeelinGroovy

Jul 24, 2003, 8:27 AM

Post #7 of 14 (731 views)

Shortcut

Re: [jennifer rose] Buying a Car in Mexico

Can't Post | Private Reply

I'm interested in your comment about the registration fees being much higher in Mexico than the USA. I plan to drive my car when I move to Ajijic next spring. It is a 2003 VW Beetle. Please elaborate and/or tell me where I can find the information about fees.

Thank you.
Libby

Esteban

Jul 24, 2003, 8:29 AM

Post #8 of 14 (729 views)

Shortcut

Re: [Libby] Buying a Car in Mexico

Can't Post | Private Reply

The registration fees she was referring to were for MEXICAN late model cars. With your US bought car, you pay your own registration according to YOUR state in the US.

MommaJ

Jul 24, 2003, 9:03 AM

Post #9 of 14 (720 views)

Shortcut

Re: [jennifer rose] Buying a Car in Mexico

Can't Post | Private Reply

Of course buying a car in the US would be easier and likely cheaper but I've heard from others that unless it is a TX plate ones tends to be a target for more harassment because the US plates screams of your "foreigner" status. We are already in MX and we are 18 hours from the border it would be an issue to get to the states and then drive the car back in. I think our immigration status would allow for us to have one but I'm not sure at this point how easy it would be to get it here. Thanks for all the advice at least I have some places to start.

Does anyone know about individuals leasing cars or does it need to be done through the company??? Any suggestions?

MommaJ

jrice

Jul 24, 2003, 4:28 PM

Post #10 of 14 (701 views)

Shortcut

Re: [MommaJ] Buying a Car in Mexico

Can't Post | Private Reply

One other problem with a U.S. plated car is that it is subject to "Hoy No Circula" -- while most late model Mexican cars are exempt. That means there will be at least one day a week in Mexico City that you cannot drive. During smog emergencies it could be 3 days a week.

My Cherokee didn't circulate on Fridays.Bummer for weekends

Esteban

Jul 24, 2003, 5:00 PM

Post #11 of 14 (693 views)

Shortcut

Re: [MommaJ] Buying a Car in Mexico

Can't Post | Private Reply

I think what screams more of your foreigner status is how you handle yourself with the person who stops you. The more you know the laws, the customs and the language will set you aside from a naive ignorant foreigner (generally speaking of course and not meant to humiliate anyone).

MommaJ

Jul 24, 2003, 6:45 PM

Post #12 of 14 (687 views)

Shortcut

Re: [Esteban] Buying a Car in Mexico

Can't Post | Private Reply

Oh we are trying very hard to learn the ways of the world im Mexico and are very excited to do so. At this point however, suffice it to say that after only 1 month here we are just starting up the learning curve. As a matter of fact we had our "cross-cultural" classes this week that helped explain a few things and also made us feel better about some of our anxieties. I think we'll do well.

Now if I could just a bank account and a car settled I'd be even better.

Thanks again for all the advise.

Mommaj

FeelinGroovy

Jul 25, 2003, 8:56 AM

Post #13 of 14 (654 views)

Shortcut

Re: [MommaJ] Buying a Car in Mexico

Can't Post | Private Reply

If one drives a US-plated car into Mexico (and has FM3 status), how would one then get Mexican plates for the car? It seems that this would be desirable.

If this has been addressed previously please accept my apologies. I've tried to read as much as possible on the forums but there is a lot to read!

Thank you,
Libby
Libby

jrice

Jul 25, 2003, 11:33 AM

Post #14 of 14 (636 views)

Shortcut

Re: [Libby] Buying a Car in Mexico

Can't Post | Private Reply

It would seem to be a good solution, but, alas, the laws complicate things.

At least for the moment, it's still a colossal headache to import a late-model U.S. car to Mexico, if it is possible at all. Putting Mexican plates on the thing constitutes "importing" it as far as the government is concerned.

Flipping things around, try driving a late-model VW beetle into the United States. No can do.