The Galloper was never sold in the USA, but offers good value and economical operation.

If you have a vehicle that you have owned and that is commonly imported to Costa Rica, you may consider shipping the car to Costa Rica. This article explains the reasoning behind the high import duties, as well as some exceptions, including updated information on environmentally friendly taxes.  Before you ship a vehicle, read our previous article on Importing a Car to Costa Rica vs. Buying a Vehicle Here regarding the advantages of buying a vehicle from a reputable importer and cases where you should import a vehicle yourself. The information stated within is based on information provided at the Tax Ministry web site ( http://www.hacienda.go.cr )

Import Duties in Costa Rica – Basic Concepts

It is very important to note that the import duties are based on the value of the car according to customs authorities, not the actual price you paid for the car. In addition, the cost of shipping plus shipping insurance  The objective of the taxes is two fold, sales tax is collected at this time, rather than at the time of resale by the importer.  Secondly, there is a luxury item tax paid.  Since no autos are manufactured in Costa Rica, this is not a protectionist tax and vehicles were not included in exemptions brought about by the CAFTA agreement.   The concept of this taxing is that those who can afford to buy expensive objects should pay more taxes, in addition cars imported to Costa Rica require roads to run on, as well as other public services like traffic police, so vehicles coming in to the country should fund these items.

Tax tables and calculation

52.29% – Cars Less Than 3 Years Old - these are cars of the current year model and three year models prior; currently this would mean 2011, 2010, 2009, and 2008.

63.91% – Cars 4 and 5 Years Old – currently these are cars 2007 and 2006 model, 4 and 5 years older than the current year model.

79.03% – Cars 6 and More Years Old – any car older than 6 years, currently older than 2005.

According to a 2005 executive decree, 32458-H, the value of the calculation must be the higher of the receipt for purchase presented by the importer, or the value of the vehicle contained in the data base of the Tax Ministry (at CARTICA/AUTOVALOR linked to from the home page of the ministry web site).   Following is a sample calculation for importing a year 2000 Nissan Sentra.

Vehicle price - $2000 (about 1 million colones)

Shipping and Insurance - $700 (about 350,000 colones)

Total Value – 1,350,000 colones

Hacienda Value - 3,590,000 colones (value returned from on line query)

Importation Value - 1,651,400 colones (value returned from on line query)

Notes: Since the importation value is higher than the purchase price + shipping, this is the value to be used.   The online query for any vehicle returns two results, the Tax Ministry (Hacienda) Value and the Importation Value.  The Hacienda Value is used for calculation transfer or registration taxes, also the end of year “marchamo” taxes.  The importation Value is used to calculate import duties.

1,651,400 x 79.03 % = 1,282,183 colones
(approximately $2564 at an exchange rate of 500 colones to the dollar)

Import Duties on Motorcycles

Motorcycles also pay fairly high taxes, with the rates being as follows:

58.10% – Motorcycles 0-3 years old

46.48% – Motorcycles 4-5 years old

34.85% – Motorcycles 6+ years old

Import Duties on Hybrid and Electric Vehicles

In 2006 the executive branch decreed that certain energy efficient vehicles could pay less luxury tax and import duties.  The decree established that the following vehicles could pay less:

Electric, Compressed Air, and Hydrogen - the decree established 0% tax rate on these vehicles. They must be new vehicles, and the importer must get certification from the MINAE (Environment Ministry) that the vehicle in question meets the required characteristics for this type of vehicle.

4 Cylinder Motorcycles - a 10% rate on certain taxes was established for 4 cycle motorcylces between 50cc and 250cc.

Hybrid Vehicles - new hybrid vehicles that have less than 2000cc gasoline engines get a 15% reduction in the luxury tax.  The vehicle must have certain characteristics and these must be certified by the manufacturer: 1) serial or parallel hybrid configuration with 2 propulsion systems, 2) combines an internal combustion engine with an electric motor – either may be used to drive the vehicle but there must be at least 1 computer controlling the system, 3) the electric motor must be at least 10 kW 4) there must be a system for capturing kinetic energy during braking, 5) maintenance-free chemical energy source, for example a deep cycle lithium ion or nickel metal battery pack, of at least 48 volts.

Import Duties on Shipping a Car to Costa Rica originally appeared on Costa Rica Car Site - WheelsCR.com on 26 April 2011.

Getting an Exit Permit for Costa Rica Registered Vehicles

If you want to go see the Panama Canal or take a weekend trip to Nicaragua, then your car, truck, SUV or motorcycle with Costa Rican plates, must get a permit to leave the country.  This is something you can do yourself, although someone else can do it for you with a notarized letter.  The cost of the permit is about $11, but it is only  good for 15 working days, so you have to leave the country within about 3 weeks of the time you get the permit. Following is the low down on the procedure, which varies according to whether the vehicle is owned by an individual, company, NGO, government agency, or if it is in the process of being registered to a new owner.Basic Procedure for individual owners (physical persons)
1) All applications must be signed in the presence of the National Registry worker who receives the document.  Each applicant must present their identification.

2) If the registered owner is unable to present the application, it must be signed by the owner and the signature authenticated by a notary.
Download the Form You Need (right click recommended)

Time required: The permit is delivered immediately by the Registry if all requirements are met.

Fees & Stamps:
¢5000 Nacional Registry Fee

Stamps:

- ¢2,50 Nacional Registry
- ¢300,00 Nacional Registry
- ¢12,50 Fiscal
- ¢5,00 National Archive

If the application is notarized, a stamp of ¢250 from the Bar Association is required.

Consulting Validity of Permits:
Permits may be consulted in the Consulting Module of the National Registry, however consultations must be made by permit number, they are not available according to license plate. The screen will indicate the permit’s place of issue, date, time, expiration date, and name of issuer.

Special cases:

Your ID on title doesn’t match actual ID If the identification number is different from that which appears in the registry, then the applicant must present a notary certification that declares that it is the same person, or a sworn statement indicating to the Registry that indicates the circumstances, as well as freeing the National Registry from any responsibility, this must be notarized.  An authenticated copy may be presented, or the original and a copy which the registry worker will authenticate.

Vehicle Held In Company Name If the vehicle is registered in the name of a corporation, which is registered in the database of the National Registry, then the person applying for the permit does not need to present the “personería jurídica” (articles of incorporation). However, if the the entity which owns the vehicles is written into the TOMES archives, then there is a 5 work day waiting period due to the registry study that must be performed.  OR the applicant may present the articles of incorporation certifying who holds the power to act in the company’s name, this certificate must be notarized and less than 2 months old and a notarized copy may be presented.

Multiple Permits, Same Company If multiple permites are solicited in the name of the same company, only one “personería jurídica is necessary, but a copy of the identification of the person authorized to apply for the permit is needed.

Changes to Title Information in Progress Exit Permits may be processed even though changes in the characteristics of the vehicle are in process, for example color, motor number, etc.  Therefore copies of these requests are not necessary.

Car Loan Registered If the vehicle has a lein, then the lein holder must authorize the exit of the vehicle from Costa Rica. This authorization must be notarized, and a “certificación de personería jurídica” less than 60 days old must be presented. If there are several vehicles with the same lein holder, then only one authorization is needed if the applications are presented at the same time.

Taxi or Buses Vehicles with taxi or bus license plates, must also present the MOPT authorization, and the INS certification that the vehicle has extraterretorial insurance, both with an age of less than 1 month.

Tourism Vehicles Vehicles with tourism license plates, must also present the ICT authorization, and the INS certification that the vehicle has extraterretorial insurance.

Government or Public Institution Owned Vehicles with public institution or government plates, must present a letter requesting the permit from the appropriate administrator, on institution stationary and with an official seal.

University & Autonomous Institutions Vehicles with state university or autonomous institution plates, must present a letter requesting the permit from the representative, on institution stationary and with an official seal, plus “certificación de personería jurídica”.

Diplomatic or NGO Vehicles Vehicles with embassy or international organization plates, must present a letter requesting the permit from the representative or ambassador, and a note from the Ministry of Foreign Relations.  If the vehicle is in the name of an individual, then only a letter on institution stationary and with an official seal is needed.

Pensioner Cars Vehicles with Pensioner plates, must present a letter and a note from ICT certifying that the individual is up-to-date with their obligations.

Blocked Transfers of Ownership Any vehicle that has a defective transfer of ownership status, must supply a certified microfilm or digital copy of the transfer.

Applications via Power of Attorney If the application is presented with a limited power of attorney, it must be written into the public registry, either the original or a certified copy may be presented, or a plain photocopy may be presented with the original and certified by the Registry functionary.

Vehicles Named in Court Documents or Traffic Violations In accordance with Article 95 Paragraph d) of the National Property Registry Regulations, exit permits will not be granted for vehicles that are subject to judicial annotations (embargos, collisions, traffic violations, etc), the interested party must eliminate the annotation through normal channels or present authorization of the authority which created the annotation.

Permit for vehicle to leave Costa Rica (temporary exit) originally appeared on Costa Rica Car Site - WheelsCR.com on 7 April 2011.

Turbo Diesel Intercooler Engine - The best of both worlds?

If you are going to own a vehicle in Costa Rica, a big part of your life (and budget) is going to be spent filling her up.  Here is some information about fuel varieties, the national refinery and distribution system, and the choices you may make in buying a car. RECOPE – Distributors

In Costa Rica the national refinery (RECOPE) is in charge of all fuel importation.  At this time Costa Rica doesn’t produce petroleum, although there are a number of bio-fuel operations and China has expressed an interest in exploration.

But for the time being, all fuel is imported.  RECOPE refines about 30% of the national consumption, importing the rest already refined.

This means that buying gas isn’t very challenging.  The government refinery imports or refines all fuel sold in Costa Rica and also regulates the pricing of the different varieties.  There are a number of distributors throughout the country, with some being multinationals: Shell, Total, Castrol, and ELF come to mind.  Most are operated as local subsidiaries though and the difference in quality or service between brands is debatable.

A few years ago there was an explosion at a Shell station in Escazu, a mother and her 2 kids were killed.  Shell corporate washed their hands of the whole deal and blamed the local subsidiary, who subsequently went bankrupt I believe.

However, many locals believe that the corporations are less likely to alter the gas pumps to deliver less fuel, and also that they care for the fuel better during transport and storage.  There is a local organization of independent distributors, ENERSOL, and I have found the stations in this network to be clean and reliable.

Full Service Stations – Prices
All gas stations in Costa Rica are full service.  Since there is no price competition and the cost for wages is factored into the government regulated price, stations have never made the switch.  There may even be a goverment policy in place, in order to preserve the pump jockey jobs this industry generates. This means that you will always pay the same at the pump no matter where you fill up.  You want to check the meter when you ask for fuel, make sure that it resets when the operator lifts the nozzle.  An old trick is to put 3000 or 5000 colones into one vehicle and not hang up the nozzle properly. Which means that the next car in would start at whatever number.  Seeing the pump go back to zero eliminates that possibility.

The price of fuel here is often double that of fuel in the US, but about half of what you pay is tax. In theory this would go to fix the roads and also to plant trees to offset carbon emissions.  In practice it does not go to road repairs, but does go into the reforestation fund.   The price of fuel is a big reason most SUVs have small engines, with 3000cc being relatively large for a gasoline engine, and 2.5 liters being about standard for a diesel motor.

Gasoline vs. Diesel Engine
The big issue in terms of buying a vehicle here is the decision of gasoline vs. diesel motor.  Most sedans are gasoline engines, so it is more of a decision with SUVs or pickups.

• Advantages of Diesel: more fuel efficiency and less costly per liter.  Diesel engines have a longer useful life (500,000 kilometers vs. 300,000) Great power for towing or 4 x 4 situations.
• Advantages of Gasoline: More responsive on the road, passing trucks for example.  Better with automatic transmission, diesel tends to be sluggish except for CRDI versions.
• Non-issues: Cold weather start up. Diesel is available at all gas stations nationwide.

Note regarding Sulfur content.  (2007 and newer diesel vehicles from the US) Diesel is not popular for passenger vehicles in the US, so these are imported to Costa Rica as new cars from the manufacturer, or brought from Korea and Panama as used vehicles. If you did find a car in the US that you wanted to import, then you had to get a pre-2007 version. This is because new emissions controls were implemented for vehicles manufactured in that model year.  The equipment on the vehicle would be damaged by the high sulfur diesel sold in Costa Rica.  However, this changed in January of 2011, when RECOPE switched to a low sulpher diesel.  This fuel now has 50 particles per million, as opposed to the previous 500 parts per million.  See the article at Fijatevos.com : RECOPE Introduces Low Sulfur Diesel

Alternative Fuels
- LPG - Some SUVs have been converted from gasoline to LPG gas, which is cheaper per liter. One mechanic I talked to said that there is a concern regarding this, when the engine is a newer model.  The old steel blocks are good for LPG conversions, whereas newer alloy engine blocks may not hold up over time to a corrosive effect that the gas has.  We have not helped any client purchase an LPG vehicle, but this would be an important issue to research. LPG is available at a number of gas stations around the country.

- Bio Diesel – Bio-diesel is not readily available for sale around the country, but it could be possible to make your own and use it without any special permits required.  A waste oil or vegetable oil adapter could be a great option, most are installed with a secondary tank, so that you can still use regular diesel or bio diesel, often this is necessary for starting the vehicle when cold.

- Electric – Electric or hybrid cars fit very well with Costa Rica’s green image.  One drawback that proponents of electric cars in many countries face is that a lot of electricity in the grid is from coal-fired plants, so the “greenity” of the electric vehicle is questionable — it wouldn’t appear to reduce emissions any more than an efficient gas powered vehicle.  However, in Costa Rica this isn’t an issue, up to 95% of our power is generated through renewable means.  This percentage drops a bit in dry season, when the capacity of hydro plants is reduced due to less rainfall.

Costa Rica Fuels: Gasoline, Diesel, LPG, and more originally appeared on Costa Rica Car Site - WheelsCR.com on 9 March 2011.

Jeep Wrangler Close-up

Many of our clients for the car buying assistance service are in the process of relocating and have not yet established a bank account.  But they would prefer not to wait to buy their vehicle until they get an account.  There are a number of ways to arrange for payment of the auto, but the best one for you may depend on your budget (the amount to be transferred to Costa Rica), and also where (or who) you intend to buy the car from.  For example, currently a wire transfer to the dealer’s account is the best option in most cases.  But if you are buying from a private party or a dealer you’ve just met, then it wouldn’t be wise to wire the money into their account and expect to pick up the car a few days later.  They will probably be in Rio spending your money on wine and loose women!

Traveler’s Checks – Good for amounts around $5000 or so

You pay 1% or so at your bank in the US and pay another 1% at the bank here. There can be a surcharge when taking the money away in $, often 1 colon per dollar. Be careful when cashing checks, you must specify to the cashier that you are getting cash, which is then to be deposited into the person’s account. Otherwise the teller may flag it as a direct deposit, which will freeze the funds for 12 to 45 business days and which obviously would delay the transfer of ownership!

Wire transfer

Wiring money costs $35 service fee in the U.S., and the banks here charge $7 to $15 to the account receiving the money, some dealers charge you that fee as well. This is much better for large amounts, like over 10 or 15 thousand dollars. You have to check with your bank before you leave to see what their procedure is, many require a PIN number to be set up personally that you can then use to authorize transfers on the Internet or by telephone. Very few dealers, but some, have US bank accounts that could also be used.

You also want to know what information they require regarding the person receiving the money according to the location of the receiving account.  The banks here in Costa Rica have intermediary accounts, so transfers may be made to any account at any local bank.  They may also be into an account that is not US dollars. (see the section on Exchange Rate)

Purchase with Credit Card

Dealers are not able to accept credit cards, because merchant accounts here have 7% fee ! Neither the dealer or most clients are willing to take that kind of a hit. See the debit card section for more specifics.

Debit Card & Cash Advances on Credit Card - good for small amounts

A debit card used to be a very good option that a number of clients used successfully.  For small amounts, under $2000 it works pretty well.  However because of new restrictions intended to counter-act money laundering activities, banks will not perform the service for large amounts unless you also have an account there. You can go to the bank and deposit into any account using a debit card and there is only a small fee. You have the option of taking cash from the bank, or also purchasing a bank manager’s / cashier’s check. A cash advance on the credit card is also feasible, you may fund your credit card by paying in advance and circumvent cash advance limits in some cases.

If it is in the Cirrus or Plus network, that is ideal, bank cards that are not in these networks will normally have problems for this purpose, even though they do work at many ATMs here. At a minimum using a VISA or MASTERCARD is necessary.  The fees vary, your “home” bank will charge a fee, as will the local bank.  Here the charge will be from $1 to $15.

If you think you would use this option, it is imperative that you discuss your intentions with someone knowledgeable at your bank. You ideally would be able to get a direct number to the international or credit / debit card department that you could call in case of problems with the “advance”. You will need to temporarily increase your advance limits on the debit card, normally this only works for a few hours or days, so having a ready way to call your bank and talk directly to the right person is important. It is much better to have the procedure unique to your bank worked out in advance, since it is less than ideal to try to sort through this after a long day of car shopping.

Exchange Rate

The prices of the vehicles are generally stated in colones.  So be aware that the fluctuating exchange rate may come into play. For example, you were quoted a price in colones of 7.5 million and converted that to $15,000 at 500 colones to the dollar for reference. The following day you initiate a wire transfer, which gets into the dealer’s account 2 business days later.  In the meantime, the dollar has dropped 3 “points” to 497.  So the $15,000 you transferred is now worth only 7455000 colones. You will have to make up the difference of 45,000 colones in this case.

Paying for a Vehicle if You Don’t Have a Costa Rican Bank Account originally appeared on Costa Rica Car Site - WheelsCR.com on 24 February 2011.

Difficulties of Importing

2007 Hyundai Terracan

Do you save money? I think the root of the issue is this, currently a 2000 Mitsubishi Montero Sport might cost $4500 in the US.  Whereas at a dealership here it is likely to cost $13 – $15,000, depending on the features and condition.  A casual glance at the price of shipping (maybe $600-1000) would lead you to believe that you could save a lot of money on shipping a car yourself. But the customs duties on any car 6 years old or more are 85% on the value of the vehicle according to customs officials.  (not the actual price you paid)  PLUS the cost of shipping PLUS the cost of maritime freight insurance.  Using $6000, this means the import taxes would be $5100.  On top of this you will have to pay a customs broker, and take on some responsibilities.  You will probably save a few thousand bucks though, the dealer has to earn a living too.

Risks of Shipping: The car may be damaged in shipping or have parts stolen in transit. Radios in particular go missing. Shipping insurance covers the vehicle being lost at sea or if the container is lost, not damage inside the container or during transit.  All vehicles must have an emissions certificate and pass the RiTeVe inspection, if you have any trouble with either, then things could get complicated for you.  You may have to travel to Limon or Caldera to retrieve the vehicle, or pay additional fees to avoid the trip.

Registration: Once you have cleared customs, you will have to go through the red tape at the National Registry in order to register the vehicle in your name and receive the license plate, in order to be able to drive the vehicle.

Reasons to Import Anyway

Even so, there are two cases where I would recommend that you seriously consider importing a vehicle: 1) If it is a car that you have owned and cared for already, and if you can verify that it is a version that is popular here. In this case you know what you have and know that you can have it repaired here without much trouble. 2) If it is special vehicle that is not commonly sold here, or has been specially modified. Modifications are not taken into account when calculating customs value, only factory options.

Can You Find a Good Car in Costa Rica?

At WheelsCR.com we have developed ongoing relationships with a number of reputable dealers who are bringing in excellent used vehicles and who stand behind their products. We have a pool of 40 to 50 dealers that we regularly call on when searching for a vehicle for a client. Often we have already had a client buy from these dealers with good results, but in all cases we have visited the lot and driven vehicles they have brought in, so we know what type of quality they have.

At times, if it is a very new car, a vehicle that doesn’t stay on the market long, or we are working with a tight budget, then we have often helped our clients purchase vehicles from private parties that are in superb condition. Our dozens of satisfied customers can attest that it is certainly possible to obtain a high quality vehicle from dealers or individuals here in Costa Rica.

In both cases you won’t have to deal with any customs issues or logistics on the front end or back end.  Also you can drive the vehicle yourself and determine it’s condition.  Often you can pay for it and drive it away immediately.

Also, there are great vehicles for Costa Rica’s unique conditions, that aren’t sold in the US.  For example, the Hyundai Galloper, or a Mitsubishi Montero Sport Turbo Diesel Intercooler.

Summary

I think both ways have their advantages, but I would argue that buying the car here is the better option, particularly if it you would be buying an SUV in the US that is new to you and then would ship here.  If you do decided to buy a vehicle here, then we can assist you with the purchase via our PASS Service (click here for details)

Importing a Car to Costa Rica vs. Buying a Vehicle Here originally appeared on Costa Rica Car Site - WheelsCR.com on 18 February 2011.

Accidents happen ...

If you have done some driving in Costa Rica, you may have felt an “urge” to get insured (lol) .  Most of our clients in the PASS service end up getting voluntary coverage, often mainly for the road side assistance which is valid nationwide.   The following information is basic information on the mandatory and voluntary insurance in Costa Rica.  What they cover and some information about costs.

• Coverage A * is Personal Liability – Injuries or Death paid on damages established by the courts
• Coverage C * is Property Damage – damage to property owned by others.
• Coverage B which is Family Passengers – medical care for driver and family up to the 3^rd degree
• Coverage D which is Collision – damage to your vehicle
• Coverage F which is Theft – the insured value of the vehicle is paid, or damages to car if recovered; and
• Coverage H which is Additional Risks.

*  These are the base coverages, you must have these before you can get any others.

These coverage designations are for the INS, other companies have similar policies — in general theft and collision may be opted out of, this will reduce the rate significantly.

Roadside assistance: may be purchased fairly cheaply as an additional coverage. You get free roadside assistance anywhere in Costa Rica. This will cover your car not starting, running out of gas, a flat tire and a tow truck. You can use it 3 times a year, plus 3 tows per year.  You call a toll free number, state your name and license plate and then the representative will ask if you need assistance or a tow. The vehicle must be less than 20 years old and less than 5000 kilograms.

Costa Rica Auto Insurance and Coverages originally appeared on Costa Rica Car Site - WheelsCR.com on 15 February 2011.

Two door version Toyota RAV4 1998-1999 models

A lot of people have been told to use an S.A. to buy the car, for the purpose of asset protection. This may or may not be good advice. Some lawyers charge $500 and more to set up the company and there are some disadvantages you will encounter:

• You will always need an up to date “personería juridica” when you do something with the car (RTV inspection, insure it, pay the annual marchamo – property tax, base insurance)
• The company has to file a tax return each year in September and pay a stamp in March. This is obligatory, whether or not you have economic activity in the company.
• The legislative assembly is discussing a tax bill that will charge $200 annually for companies.
• Being in an S.A. protects the car in case you are sued, but the vehicle is more likely a source of liability (due to accidents) so in most cases the protection is limited.
• Board members – you need to have different members of the board and a legal representative. This can cause problems later, for example if the lawyer fires his secretary and she is on your board, then you will have to replace her. An unscrupulous or careless attorney can cause you to lose control of the company that will own the vehicle if people are granted powers in the incorporation that they should not have. Ask your attorney about making a Responsibilidad Limitada (partnership or sole proprietor) rather than a Sociedad Anonima (S.A.) to avoid this.

Advantages

Are there advantages to having the company own a car? You may want to have the car in a company name if it will mean you can declare it for local taxes or you are using it for a business. It does protect the vehicle if you are faced with a civil suit for some reason not related to the car, so if it is a very expensive car and this is a consideration, you may want to have it in a company. If you are arrested for some reason having the car in a company name could protect it. If you have an accident with the car, the car could not be placed under a lien as a part of the civil suit arising from the accident. If you do decide to use a company, make sure:

• The company should not own bank accounts or real estate, only the vehicle. (unless it is a related business enterprise)
• Consult with your lawyer or CPA about what documents you must file for the company and when.
• Get a personería jurídica from your lawyer. This can also be obtained when necessary from the service window at the Registro Nacional, it is pretty straightforward process that anyone can do.

Should I use a company to buy the car ? originally appeared on Costa Rica Car Site - WheelsCR.com on 14 February 2011.

We had a reasonable journey back to Tilaran and all was going well until we got to our house and Peter discovered that he had left the key for the padlock on the gate on the keyring of the rental car!  Thankfully there is also a side gate where we can bring in the car in off the road, but there were a few moments of panic!  I have called the car rental company and they have found the key – they say they are going to put it on a delivery service which runs on the bus from San Jose to Tilaran.  Hopefully it will arrive on Monday and we can go and collect it from the the bus station.

Anyway, the most important part of this email is to tell you how happy we were to have found you – you have both offered us service with a smile (in Kattia’s case anyway – Russ, we imagined you smiling through your emails!) and have gone above and beyond the call of duty from beginning to end.  You helped us through what could have been a very stressful time and there is no way we could have done it without you.  We were lucky to find a suitable car straight away and you managed to speed us through the buying, registration and insurance processes so that we could get on our way.  Kattia – your cheerfulness and can-do attitude made everything seem easy, even if your driving did leave us holding our breath on occasions!  One day we will learn to drive like you!  Many, many thanks for all you did for us – and please feel free to use our comments as a testimonial on your website – we would have no hesitation in recommending you to anybody.

Regards,
Frances and Peter

Driver’s Education? originally appeared on Costa Rica Car Site - WheelsCR.com on 14 February 2011.

Vehicle registration in Costa Rica goes through the National Registry

In Costa Rica, vehicle registration or transfer done using a lawyer one of 2 ways.  Transfer costs are roughly 3.5 % of the fiscal value of the car according to tables the Registry uses; which may be higher, lower or the same as market value. You can base it on market value to get a rough estimate, this should include lawyer’s fees and all taxes.

Case 1 – Pre-owned Cars with Permanent Tags

In this case, you are purchasing a vehicle that was bought new from the dealer here, or previously imported as a used car.  It has a metal license plate and has been used on the local roads.  You may be purchasing from a private owner, or from a dealer who has taken the car as a trade in.  Either way the purchase is relatively painless, you will go to a lawyer’s office — or the lawyer will come to the dealership.

• You will review the sales document which states the vehicle information and terms of sale.
• You will pay the current owner cash (either by direct deposit or cashier’s check)
• Both parties will sign the sales document, you get the keys and off you go!
• The lawyer puts through the paperwork in the registry and in about 2 weeks the vehicle will appear in your name online: National Registry, owner info by plate number – motor – chassis – owner

Case 2 — Vehicles Just Being Imported to Costa Rica for the First Time

In 2010 the registry changed the process and the traditional temporary plates have been eliminated, so other information you have may be outdated.  There is now a 72 hour waiting period for vehicles coming to Costa Rica for the first time that you will buy from the dealer. The good news is that you don’t have to go through a second procedure for the metal tags, they are issued right away, but you have to allow for 3 business days while the paperwork goes through.

The change was made because in some cases people did not register the vehicle (since the expiration date on the temp tag would not be easily visible to a traffic officer), or temporary plate copies were used for nefarious enterprises.

So in this case the registration procedure is :

• You pay the dealer in cash and get a receipt (better use a reputable dealer!)
• You provide your information to the dealer and sign the sales document
• You wait 3 – 4 days while the dealer’s lawyer submits the paperwork and it goes through
• You return to pick up the vehicle

Dealer Plates

Often in our PASS Service (Help with Car Buying in Costa Rica) our clients want to fly into San José and get out of town as quickly as possible.  In that case, we can limit the search to vehicles that are already registered in Costa Rica. The drawback is that many people prefer a car that has not been exposed to the road conditions here, so if you have things to do in San Jose in many cases it could be worth waiting. This may depend on the particular vehicle you are buying, some price ranges and vehicles will be similar condition and quality in either case, or it may be a year model that the dealers don’t import anyway.

Alternately, some dealers have AGV plates, which are for test driving vehicles, but in many cases the dealer will let you use them and take the car away immediately.  However you must return to the dealer to return the AGV plate and pick up the permanent plate, normally by the following week.

Costa Rica Vehicle Registration – Transfer Process originally appeared on Costa Rica Car Site - WheelsCR.com on 10 February 2011.

Hyundai Galloper 4 x 4 SUV for Kalon Surf

When I was planning my move to Costa Rica to open my luxury surf school, Kalon Surf, one of the key things that I needed to manage was getting a car, a proper one, preferably not overpriced. But how do you go about it? Where to go? Private sale or to a dealer? Which ones are good, which one not? What is the right price? Which type of car should you get? With seriously high taxes on import, you really do need to consider your options. But again where to start…

Then funny enough, at the same time I found Fijatevos on the internet, they were also recommended to me by someone I trust on anything he would say – I checked their website, read their extensive reviews (I now even more understand why Kattia has so many) and decided that this is definitely the best option. In fairness, at that moment I also thought – even just on getting from dealer to dealer by taxi and the amount of time to locate the taxi’s their service would pay off.

It turned out to be such much more, Russ replied quickly on any questions I had, but more importantly they have knowledge about the market tell you sincerely what to do, what not to do and even help you with some additional issues (e.g. Read the article on opening a Costa Rica bank account on Fijatevos of Russell). I felt I was already well prepared before I arrived.

On arrival, Kattia picked me up at the hotel and had a list of cars ready to be checked out. And boy, she knows a lot – she checks the car with you, part for part, asks whether certain things get replaced or not and also tells you when it is better to move on to the next car – and although she is on good terms with most of the dealer you will visit (which definitely helps) she is 100% on your side and tries to get done as much as possible.

It goes without saying I would recommend them in a heartbeat, and chances are that when I buy my next car here in Costa Rica (as I might need another one for my business) I would like to use Kattia and Russel again. Thanks guys.

Kjeld Schigt, Founder
Kalon Surf School – Playa Dominicalito, Costa Rica

Ps. Their “after-sales” is perfect as well!

Surf’s Up ! Kalon Surf Costa Rica Buys Galloper originally appeared on Costa Rica Car Site - WheelsCR.com on 8 February 2011.