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jwander

Mar 8, 2011, 5:33 PM

Post #1 of 17 (5208 views)

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Buying a new car in Mexico

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We are relocating to Mexico late this summer. We are selling our vehicles here in the US and will be without one when we move. Eventually, we plan on buying a new car in Mexico. We have a friend from the area who will do all initial dealing and negotiating for us if we need him to do so. Would like to hear from anyone who has purchased a new car in Mexico as to their experience.

Thanks,

Jeff and Lisa

Rolly

Mar 8, 2011, 5:39 PM

Post #2 of 17 (5196 views)

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Re: [jwander] Buying a new car in Mexico

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Start by reading this: http://rollybrook.com/buying_a_car.htm

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

joaquinx

Mar 8, 2011, 6:02 PM

Post #3 of 17 (5190 views)

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Re: [jwander] Buying a new car in Mexico

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In May of 2009, I bought a VW Crossfox from the local VW dealer. Not wanting to pay a high interest rate, I put 70% down and made three payments without interest. I needed to show the dealer my passport, my FM-3, and my Mexican drivers license. After picking up the car, I took the copy of the Fractura to the Hacienda and paid the fee for the license plates, took a form from the Hacienda to the bank and paid the Tenencia (now no longer required). After the third payment, I received the original copy of the Fractura.

Rolly

Mar 8, 2011, 6:09 PM

Post #4 of 17 (5189 views)

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Re: [joaquinx] Buying a new car in Mexico

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...paid the Tenencia (now no longer required).
The tenencia has been waved for 2011 for new cars only.
There are promises that it will all end in 2012. We'll see.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

joaquinx

Mar 8, 2011, 6:17 PM

Post #5 of 17 (5185 views)

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Re: [Rolly] Buying a new car in Mexico

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In Veracruz, the tenencia has been waived.
This is what I paid.

6601 IMPTO TENENCIA DE VEHIC (AUTO) CORR (2011) 3272.32
2408 DERECHOS DE CONTROL VEHICULAR (2011) 510.30
8230 DONATIVOS CRUZ ROJA MEXICANA (2011) 10.00
9681 SUBSIDIO ESTATAL IMPUESTO SOBRE TENENCIA -3272.32
1001 PARA EL FOMENTO DE LA EDUCACION 76.54
4 REDONDEO 0.16

Total 597.00

dongringo_catemaco

Mar 9, 2011, 5:10 AM

Post #6 of 17 (5125 views)

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Re: [joaquinx] Buying a new car in Mexico

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Joaquin - I don`t see IVA. Does the dealer pay that? And is it the full 16%?
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joaquinx

Mar 9, 2011, 5:42 AM

Post #7 of 17 (5119 views)

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Re: [dongringo_catemaco] Buying a new car in Mexico

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In Reply To

Joaquin - I don`t see IVA. Does the dealer pay that? And is it the full 16%?

I had to dig up my Factura to find the answer. Here's the breakdown:

Lupo Crossfox 165,325.15
Traslado desde la fabrica hast su destino 3,172.85
Inspeccion final. Acondicionamiento y garantia 402.50
Bonificacions (menos) -9,200.00

subtotal 159,700.50
IVA 15% 0.00
Total 159,700.50

It seems like the IVA was not charged or eaten by the dealer. I believe it was because of the 70% downpayment and the three no-interest payments.

dongringo_catemaco

Mar 9, 2011, 6:04 AM

Post #8 of 17 (5114 views)

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Re: [joaquinx] Buying a new car in Mexico

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Thanks, but hmm, the financing contract should be a separate transaction from the sale. I wonder if IVA gets charged on new vehicles. In the past I was under the wrong impression that tenencia was a way to collect the tax over time.
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joaquinx

Mar 9, 2011, 6:12 AM

Post #9 of 17 (5107 views)

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Re: [dongringo_catemaco] Buying a new car in Mexico

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In Reply To

....the financing contract should be a separate transaction from the sale.

There was no financing contract as there was no interest charged on the three payments. I actually got a 100 peso discount for paying on time.

DavidHF

Mar 9, 2011, 4:13 PM

Post #10 of 17 (5035 views)

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Re: [dongringo_catemaco] Buying a new car in Mexico

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IVA is charged on new vehicles. The buyer pays it.

roni_smith

Mar 11, 2011, 6:43 PM

Post #11 of 17 (4913 views)

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Re: [joaquinx] Buying a new car in Mexico

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We have our eye on a Crossfox for when we move in the next year. How have you like yours?
------
Planning for Mexico Move Blog

joaquinx

Mar 12, 2011, 5:20 AM

Post #12 of 17 (4865 views)

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Re: [roni_smith] Buying a new car in Mexico

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In Reply To

We have our eye on a Crossfox for when we move in the next year. How have you like yours?

I like mine, but you might want to take it on a test drive. One, it uses premium gas because of the high compression engine. Two, it doesn't develop hp until the engine spins around 2k. It idles at 1k. All in all it's not bad until you have the a/c on and need to go from a dead stop up a hill. Then you have to rev up the engine to get hp else it won't move. On certain conditions, you need to go to 1st gear when 2nd will not move the car because of the low rpm. I've gotten used to its quirks and can spin the wheels starting up a hill. The trunk is small but can hold four large bags of Costco dog food.

I believe that you are moving to Merida, so hills are not really a problems with you, while I live in Xalapa, Veracruz and we have hills everywhere.

Why I chose it was it is huge on the inside for those tall and big gringos. Even the rear seat is roomy. It is small enough to turn the car around on my narrow street for the turn radius is real small.

Electric windows, electric side mirrors, fog lights (we need them here in Xalapa), a/c (those Brazilans know the need of a good a/c), big tires for great traction, quiet at over 110kph, four cup-holders in the front, and over 30kpl. The radio is boss: SD slot, USB connector, CD slot, bluetooth and speakers everywhere.

That should be over 30mpg or around 15kpl

(This post was edited by joaquinx on Mar 12, 2011, 8:15 AM)

roni_smith

Mar 12, 2011, 8:05 AM

Post #13 of 17 (4833 views)

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Re: [joaquinx] Buying a new car in Mexico

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Thanks so much!!

It will remain on the short list

The first VW I rode in was in Brazil - a German built 36 horsepower Kombi that my Dad had shortly after moving down there in 1960
------
Planning for Mexico Move Blog

woffoman

Mar 20, 2011, 3:42 AM

Post #14 of 17 (4530 views)

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Re: [jwander] Buying a new car in Mexico

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I bought a new luxury SUV and it was a lot of hassle to fill out the paperwork. The agency wasn't of that much help once they got the money. Haggling was of no use, they would not budge on the price no matter what. Don't expect luxury service if you buy a luxury car. Also the agency always tries screw me over on the repairs, asking 2-3 times the US agency price (example: 16000 pesos for replacing the stereo). Most regular mechanics will also try to screw you over so ask for quotes in many places and if possible watch while they are doing the repairs. Once I had a loose timing belt and only the 4th mechanic I went to would agree to tighten it without trying to blame the noise on some other part. He too charged me 150 fcuking pesos for a 15 second job.

I have also bought an old car from a coyote and the amount of hassle with the paperwork was about the same as with the new car. I have noticed that there are a lot of 1-2 year old semiluxury and luxury cars with little mileage (20-30t km) for about 40% off the new car price. I would advice you consider one of those, soloautos.com.mx is a good place to start. Many Mexicans buy luxury cars just to presumir but then don't have money to pay for gas and insurance. Some narcos have garages full of luxury cars (supposedly) so that must be another reason for the low price of those cars. Don't buy one of the typical narco-del-ejido brands (hummer, escalade, lobo) and don't tint all the windows. You don't want that kind of trouble.

Nevertheless, buy a big car. You will not feel safe in a small car. Most mexicans don't know how to drive or drive recklessly on purpose. They often ignore red traffic lights and they don't like to use turn signals much. I think most of them do not even know what they are for. Instead of using them to signal actual turns, they use them to signal when it is safe to pass. Also many don't like to give space to someone needing to change lanes so a big intimidating car is good when you forcefully pile into the other lane.

Here are some tips for time when you have bought the car

- The size of a liter varies between gas stations so keep track of how much the needle moves and then stick to the gas station that gives you the most. Supposedly the stations outside of the towns are the worst robbers.

- When the cholitos come to clean your windshield during red light, put your windshield viper on. Saying no won't stop them. Sometimes the water they use is dirty so sooner or later they will scratch your window if you let them clean.

- Put theft protection on your side mirrors or someone will steal them sooner or later. Same thing with the spare tire if it is located outside the car. Always take off the faceplate of your stereo.

(This post was edited by woffoman on Mar 20, 2011, 4:17 AM)

joaquinx

Mar 20, 2011, 7:00 AM

Post #15 of 17 (4513 views)

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Re: [woffoman] Buying a new car in Mexico

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In Reply To

I bought a new luxury SUV and it was a lot of hassle to fill out the paperwork.

Buying my Crossfox from the VW dealer was easy. I told the salesperson the color because everything else was included in the price. After I presented her with the deposit slip for the 70% down-payment. I had to sign a few documents, have them copy my passport and FM-3. This took all of 15 minutes or so and then I was given the keys to the car and a brief explanations of the workings. I think the biggest surprise was when I was told that the car took premium gas only .

After almost two years, I only have 10,000 kms on the car without any problems. I do have to take it back to the dealership once a year to the yearly maintenance and oil change. I call and get an appointment for that. I couldn't ask for better treatment. I had some side molding replace at 400 pesos for the molding and 90 pesos for the labor.

Having a big car in Mexico is trying to find a place to park it and how to navigate down a narrow street. Parking lots always have narrow spaces to park. I can turn my car around in my narrow street and can park anywhere.

I will agree that Mexican drivers are nuts with making left hand turns from the right lane, ignoring stop signs (I don't and am very careful when crossing a four-way stop intersection). Turn on your emergency flashers and double-park!!!

Pick a gas station where the taxis gas up. That station gives a liter for a liter.

I've never had a scratched windshield from getting it cleaned at an intersection.

I need to know what is theft protection for side mirrors and the spare tire on the outside/rear of my vehicle has a lug-nut lock.

I wouldn't know how to take the faceplate off my stereo as it seems to be part of the radio.

mexicobuff

Mar 20, 2011, 8:26 AM

Post #16 of 17 (4490 views)

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Re: [joaquinx] Buying a new car in Mexico

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Theft protection for side-view mirrors: a plastic surround for the mirror and its housing that prevents thieves from taking the mirror itself. Mirror theft is a concern particularly if your side-view mirrors are electronic. If they are just simple mirrors and are stolen, it's easy to replace them at any glass cutting shop.

Gringal

Mar 20, 2011, 8:50 AM

Post #17 of 17 (4481 views)

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Re: [jwander] Buying a new car in Mexico

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We bought a new Honda FIT last July from a local dealer in the Lake Chapala area. We never had a better car-buying experience...anywhere. No pressure, good price and no hassle paperwork. The FIT sold in Mexico has a higher clearance than the US version which takes care of the bumps in the road. We've had no problem with topes, using reasonable caution. We have no intention of off-roading or using unpaved routes, though. Our car is for transport, not adventure.

Speaking of reasonable caution, you need eyes on both sides and in the back of your head to survive driving in Mexico. We first lived in San Miguel de Allende, a town with 80,000 cars and not one stop light in town. After the initial shock, we learned "telepathic" driving. Now that we live in the Lake Chapala area, we contend with the Mexican free-for-all driving style, plus a few impaired seniors who leap before looking, kids on four wheelers and even texting bicyclists. No need for other thrills. Driving does it.

As for big vs. small cars: nothing will save your assets better than good driving skills, but it helps to have a car that is responsive and has decent acceleration. We drove a big pickup here, but are much happier with our smaller car because of the ease of maneuvering and parking on the narrow streets typical of Mexican towns.
As the price of gas rises.......we are even happier with the little burro.