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Paying Cash for a Car

Last activity 03 February 2023 by daveandmarcia

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ecklest

Hi everyone,

I will be moving to Costa Rica this year and have a question about buying a new car.  I want to pay cash for a new Toyota Land Cruiser which lists (in Costa Rica) for about $67k USD.  My question is, what are my options for distributing the cash to the car dealership?  Do they accept wire transfers?  Would it help if I had a Costa Rica bank account?  In the U.S. I would simply write a check.  What methods of payment will be available to me to pay for the vehicle?

Thank you so much.  I can't wait to get to Costa Rica!

Todd Eckles

Henrych

Good question, I have the same interest.
I guess this price of $67K doesn't include tax, which can be around 50% if I am not mistaken. Hope someone will correct me.
As to payments, I guess if you can transfer funds to the Costa Rican bank account (assuming you have one) they you should be able to do the same as in the US. My logic.

ecklest

Good point about the 50% tax, I completely missed that.  But I don't want a car payment with having a limited, fixed income.  Thanks for your response.

Todd

kohlerias

The '50%+'  tax applies to imported vehicles, but this would be included in a vehicle sold in CR.

Personally, I would advise against buying an expensive new vehicle as it is best to 'blend in' rather than 'flaunt your wealth' and having it stolen.

You can arrange a wire transfer, but you would have to arrange your finances with a local bank, who in turn, will want lots of information on where the money is coming from...

ecklest

Thank you for your response, it's, much appreciated.  I'm not trying to flaunt any wealth, I just am not good at buying used cars.  I need something that will last me about 20 years.

Thanks again for replying.

Todd

davidraycr

When I bought my first vehicle i transferred money to my account in C R then to the dealership but you can do it directly

kohlerias

When writing 'flaunt you wealth' I was meaning how this will look to your neighbours.
As a Canadian who lived there for 18 years believe me , in that you don't want to 'stand out' other than being a good neighbour.

We lived in three different locations, and in each one, had many items stolen from us, from boots to cement power poles...leaving live cable on the ground...horses, power tools and in one instance where after loading their vehicle with our 'stuff'  including the motor for our cement mixer, they poisoned our three dogs. Then they went to other nearby homes and did the same. We had an old pickup, and lived in a small 'Tico-type'  home.

Many expats will tell you that they feel that they are looked upon as a 'ATM.'

We loved living in Costa Rica but you must keep your ears and eyes open to what is happening around you.

samramon

You didn't ask for an opinion on this, so I am sorry if it is unwelcome. But I'd feel bad if I didn't also say that having a $70k car flags you as a rich gringo, flags the vehicle for breaking into and stealing what's inside OR stealing the entire vehicle.
I get that you want a car that will last but why not buy 5x $13k trucks instead of 1 $65k one? That is buy one and see how long it lasts... you may not really need a $65-70k car/truck.
It does depend on how much you drive. But once you get here you may not really want to drive that much, so...
I bought a $7k Tracker with 150k miles on it 5 years ago, still driving it. I spend about $500 a year on repairs... (Knock on wood! Hoping it keeps on ticking!) But you get my point...
I just don't think driving a $70k car here is a good idea for the reasons Kohlerias said, plus it's just a lot of money to spend for a car ... You can almost buy a house for that! You will be looked at as a rich gringo, and a target for overcharging, theft etc.

Henrych

A very good point. I'll be buying a used car that still has life in it. Maintenance/repairs, as I heard, aren't expensive in CR, cars are.

davidraycr

Good luck finding  a qualified auto mechanic. I been here 8 years and its  even the dealerships that  will screw you. I sued one, lost when i had a no dought about it case. Judges. That's  another  issue. Just facts

ecklest

I understand your point now.  This is a very helpful post.

Thank you,

Todd

ecklest

Thank you for your opinion as I do value it.  I may reconsider my decision now after reading the comments.  You have been a big help, thank you.

Todd

Henrych

davidraycr wrote:

Good luck finding  a qualified auto mechanic. I been here 8 years and its  even the dealerships that  will screw you. I sued one, lost when i had a no dought about it case. Judges. That's  another  issue. Just facts


So, does it mean that it is almost impossible to buy a car in CR without being screwed? As well as to find an honest mechanic? And the corruption is omnipresent? I wonder why there are many people, who are happy living there....

kohlerias

It is often reported that between 50-60% of folk moving to CR, return 'home' within 2-3 years...for varied reasons.

A good reason to rent for an extended time before purchasing a home, as it is easy to buy, but often very difficult to sell.  I have multiple Canadian friends there that have had their home for sale for 4+ years.

samramon

Henrych wrote:
davidraycr wrote:

Good luck finding  a qualified auto mechanic. I been here 8 years and its  even the dealerships that  will screw you. I sued one, lost when i had a no dought about it case. Judges. That's  another  issue. Just facts


So, does it mean that it is almost impossible to buy a car in CR without being screwed? As well as to find an honest mechanic? And the corruption is omnipresent? I wonder why there are many people, who are happy living there....


No, Not impossible at all. But I would suggest renting a place to live in the San Jose area until you find one. That way you can use buses and taxis or Uber to check them out because a car rental - with needed insurance! - costs around $400 a week!

We rented a car while looking for one to buy. It took us over 3 weeks and we spent nearly $1500 in car rental just looking for one to buy, and we had looked at some 10 or so cars in those 3 weeks before finding one.

We finally found a mechanic who swore he knew of a car that was in good shape. In reality it was overall good shape for a 16 year old 4wd car which was all we could afford, around $7-8k U.S.

We did have to do about $500 repairs on it over the next 6 months but then it settled into just repairing it once or twice a year. (I drive only to town about once a week, I don't like driving here.)

The absolute best way is to find a trustworthy person who is selling it, someone who is recommended to you. But even then you have to have an independent mechanic (not one the seller recommends!) check it out. Usually this is only like $25-50 for them to do. If the seller won't let you drive it to a mechanic to check it, then don't buy it!

Finding a good trustworthy mechanic is just as hard here as it is in the USA. We finally found one after living here 3 years. Went through about 4 who were not good before that. Again ask gringos and Ticos who live in your area who is good. A Tico I know well recommended ours to us.

We had found a car the 3rd week we were here, and were ready to buy it but the mechanic we took it to told us it had been in a major wreck based on his visual inspection which we did not notice, but he did. Meanwhile the owner began to show signs of being dishonest...
So we kept looking.

One way to buy a car - if I were to do it again - is to spend some time looking/waiting for a gringo who is leaving the country to sell one, or someone trading up, a friend of a friend type of thing. You can begin looking for this from the USA and begin to look at prices online of the type of car you want to buy to get an idea of prices and quality/mileage.

The used lots in Grecia have mixed reviews. Some say DO NOT buy there, but I've heard a couple people who did and were happy. We looked at one there, we were liking it on the test drive... until it completely broke down during the test drive and they had to send someone to come get us and it. Luckily the dealer was riding with us... So we didn't buy it! LOL.

If you have the money I'd suggest buying from a well-reviewed (from people you encounter in person or on facebook) dealership of new cars, buy one that is one year old or less. Same as in the USA. That's what experts recommend in the USA.

Generally you have to buy with cash here if you're a gringo I think.

I've known of several people who bought from other gringos and came out with a good car at a fair price.
That doesn't mean some gringos won't cheat you. That definitely can happen. Just like in the USA. And you can buy from a Tico but I would be wary unless I knew someone who knew them well.

Buying a used car here isn't that different than in the USA except that here the dealers are not as regulated so there is a bit more risk of getting a lemon and not being able to return it. I think in the USA some places have a 30 day return policy if it's a lemon. Here, I very much doubt if they have that.

davidraycr

Hard to sell property here. One mountain home took over 6 years  and finally  sold

davidraycr

Come see for yourself. After almost 8 years  im done .still enjoy much of the people and country .

ecklest

davidraycr wrote:

Come see for yourself. After almost 8 years  im done .still enjoy much of the people and country .


Why are you done, if you don't mind me asking?

Todd

ecklest

kohlerias wrote:

When writing 'flaunt you wealth' I was meaning how this will look to your neighbours.
As a Canadian who lived there for 18 years believe me , in that you don't want to 'stand out' other than being a good neighbour.

We lived in three different locations, and in each one, had many items stolen from us, from boots to cement power poles...leaving live cable on the ground...horses, power tools and in one instance where after loading their vehicle with our 'stuff'  including the motor for our cement mixer, they poisoned our three dogs. Then they went to other nearby homes and did the same. We had an old pickup, and lived in a small 'Tico-type'  home.

Many expats will tell you that they feel that they are looked upon as a 'ATM.'

We loved living in Costa Rica but you must keep your ears and eyes open to what is happening around you.


I appreciate your very transparent response to my question.  I think I have changed my mind on buying a new car when I get to CR.  I want to blend in.

Todd

davidraycr

Intrusive  police.  New Government  policies .cost of living for what i get here. Gas prices  went up yesterday. Rising  taxes. CR is not as inviting  as it was  years ago. Let them have the Chinese. Im moving  to Nicaragua as soon as my last house is sold. I was refused  residence  here for something  i did 49 years ago. Nicaragua  will  except me with  arms opened  wide.

ecklest

davidraycr wrote:

Intrusive  police.  New Government  policies .cost of living for what i get here. Gas prices  went up yesterday. Rising  taxes. CR is not as inviting  as it was  years ago. Let them have the Chinese. Im moving  to Nicaragua as soon as my last house is sold. I was refused  residence  here for something  i did 49 years ago. Nicaragua  will  except me with  arms opened  wide.


Thank you for your response.  I wish you a lot of luck in  Nicaragua!

Todd

davidraycr

Thanks.

JBuonopane12

David
           I agree with you, I’ve been here for over a year and find it not all that attractive. The place is ridiculously expensive as David mentioned and I find a lot of the Ticos are  inconsiderate especially when driving.  I laugh when I read these articles you can live comfortable for $1500 to $2000 a month.   Ya Right it’s costing me about $4500 to live normal   
Also the traffic is insane and I’m from Brooklyn

I bought a new car had it 2 months driving on Highway 27 a cement block falls off a construction truck ( because these Tico don’t tie anything down)
Took the INS agent a month to look at the damage a month to get the parts which I am still waiting on. So in all it will take close to 4 months to get my brand new car back
And David is correct they do look at Americans as cash cows and the residency programs here are a joke it’s all about Money again. You would think they would give us  gringos a free pass since they need us along with investing in the country
But I guess some like it here definitely not for me
I am entertaining Panama and Nicaragua where it’s less expensive and the give you automatic temp residency

Hope this helps

davidraycr

Talking about  inconsiderate?  Dont move to Sarchi. Roosters and howling  dogs abound. No respect  for neighbors  here.most driver's  are first generation so you must expect  to dodge  and weave. But in all its better  than California. Nicaragua  residency  laws more relaxed more freedoms more of us moving  out of CR.

Pearlette

Thank you!  I've crossed CR off my list.  Definitely let us know where you land and what you think.

davidraycr

Will do

JBuonopane12

I heard a lot of positive things about living In Nicaragua. Is rated a safer place then CR.  Shit I live in San Rafael Escazu it’s like driving in New York City along with the cost to live here
Last month we had two guys shot to death on the main road in a car in front of a sports bar I usually attend And Escazu is one of the wealthy area

I have to say it’s definitely been a Culture Shock living here.  I guess if I moved to Gunacaste it be different but I’m not a beach or suffer guy

JBuonopane12

David   
       Are you going to be driving your car to Nicaragua?   
I am not sure what to do with my car which is brand new only 4 months old.  Is it major work to get it out of CR and bring it to Nicaragua or Panama

ecklest

JBuonopane12 wrote:

David
           I agree with you, I’ve been here for over a year and find it not all that attractive. The place is ridiculously expensive as David mentioned and I find a lot of the Ticos are  inconsiderate especially when driving.  I laugh when I read these articles you can live comfortable for $1500 to $2000 a month.   Ya Right it’s costing me about $4500 to live normal   
Also the traffic is insane and I’m from Brooklyn

I bought a new car had it 2 months driving on Highway 27 a cement block falls off a construction truck ( because these Tico don’t tie anything down)
Took the INS agent a month to look at the damage a month to get the parts which I am still waiting on. So in all it will take close to 4 months to get my brand new car back
And David is correct they do look at Americans as cash cows and the residency programs here are a joke it’s all about Money again. You would think they would give us  gringos a free pass since they need us along with investing in the country
But I guess some like it here definitely not for me
I am entertaining Panama and Nicaragua where it’s less expensive and the give you automatic temp residency

Hope this helps


Very useful information.  I'm starting to get worried now.  Does anyone have anything good to say about Costa Rica?  :D

davidraycr

Lots of great things to say about  CR . Lots of great things  about most countries. Its the direction and influences on this administration  that concerns  me.

JBuonopane12

Todd
           I paid for my new car using credit cards
Getting cash to CR is a project in itself
Wire transfer I had difficulty’s with they will only let you do small amounts. Money laundering is a big crime here
I even have a CR savings account the problem is even when I transfer from my US bank which does not charge me any fees my account here in CR whacks me for two transfers fees one from the government bank and one from the bank I have the savings
Also FYI be prepared to wait for you title which is not like a car title in the states I waited 4 months for my title and license plates.

JBuonopane12

Todd
           Don’t let our issues sway you thinking on moving here, you need to give it a feel for it yourself
Don’t buy anything rent you can even rent a vehicle long term until you decide
I regret buying my car because it prevents me from picking up and moving I’m just grateful I did purchase and real property.  It is a challenge to sell property and cars of value
I was asking David if he moves to Nicaragua is he driving and taking his car
If I can bring my car with me to Panama or Nicaragua it would make my life easier but I know the CR government charges you for every move you make here
I am still confused how the locals are even able to survive here in CR with the extreme taxes and cost of living
You can only eat so many bowls of rice and beans

davidraycr

I agree. Come see for yourself. The changes CR is going  through might not be a factor for you

samramon

JBuonopane12 wrote:

I heard a lot of positive things about living In Nicaragua. Is rated a safer place then CR.  Shit I live in San Rafael Escazu it’s like driving in New York City along with the cost to live here
Last month we had two guys shot to death on the main road in a car in front of a sports bar I usually attend And Escazu is one of the wealthy area

I have to say it’s definitely been a Culture Shock living here.  I guess if I moved to Gunacaste it be different but I’m not a beach or suffer guy


I'm no expert on Nicaragua but been there a few times and I find it much poorer than Costa Rica and their government is very lax, in a bad way imho.
For example, according to my Tico friend who has friends in Nica., the government told the people nothing about the Pandemic. So the Nicas coming to our CR border to work were outraged when we wouldn't let them in due to the pandemic.
If you're a Trumper and enjoy the "downplaying" of the virus, then maybe Nicaragua is for you... otherwise I'd avoid it like Covid-19!

Here in Costa Rica, out in the country, the Nicas come in, help with farm work and a percentage of them steal what they can before they head back to Nicaragua. My friend had a bunch of farm tools stolen recently. Nicas are notorious here for breaking into houses too.

This is not racist or xenophobia, I am sure there are many good Nicaraguans! I've met some!
But when a country is dirt-poor the poor people will often turn to theft/robbery etc.

You couldn't pay me to live in Nicaragua. I hated what I saw of it.
I do hear they have some beautiful beaches though. So go for a vacation at a safe hotel resort...

samramon

JBuonopane12 wrote:

Todd
           Don’t let our issues sway you thinking on moving here, you need to give it a feel for it yourself
Don’t buy anything rent you can even rent a vehicle long term until you decide
I regret buying my car because it prevents me from picking up and moving I’m just grateful I did purchase and real property.  It is a challenge to sell property and cars of value
I was asking David if he moves to Nicaragua is he driving and taking his car
If I can bring my car with me to Panama or Nicaragua it would make my life easier but I know the CR government charges you for every move you make here
I am still confused how the locals are even able to survive here in CR with the extreme taxes and cost of living
You can only eat so many bowls of rice and beans


The poor Ticos - at least most of them - own a home and some land. At least around where I live.
So they have no rent to pay.
That said, the electricity, gas, water, internet and so on uses up their income, and the CAJA health care plan also does because they have to pay it. It is cheap but unfortunately does not cover many needed meds. So the people often can barely afford needed meds, and some have trouble paying their bills and buying enough food to eat.

That said, they are by and large not thieves and almost never commit violent crimes, so it is mostly safe here. The Nica migrant workers are a problem though in that respect. Same as in the USA - migrant workers sometimes turn to crime.

Ginger Firestone

Wow, what a different experience I have had compared to yours.  I am an older woman living alone in a rather remote area and feel perfectly safe living here.  I am in a native area, not an American enclave.  I totally agree with not buying a new car.  I don't live in the city, so our roads are for shit - so no reason to buy a new car.

The police use Terios cars and that's what I bought.  It's a smallish SUV, gets decent mileage and gets me from point a to point b in relative comfort (depending on the road).  I bought a 2 yr old model at a new car dealer (I don't trust private sales or used lots) for 15k USD about 5 years ago.  The car is still in good shape and I planned on keeping it 8 years and then trading it in.  I know a lot of people keep their cars longer than that, but I don't want to wear it down to where it's nickel and diming me all the time.  I waited a couple of years before buying my car.  My neighbors and I would go together shopping, etc and I used taxi's.  I did pay cash and had no problem.  Biggest problem here is bringing money in.  You need to get an atty to write up a letter explaining where your money is coming from - even if it's one CR bank to another (very stupid).

JBuonopane12

Ginger
             I was living in Escazu which is the Beverly Hills of Costa Rica I assume, so petty theft was a big issue. The houses are amazing but covered in 10 foot walls electric fences and bars on the window. Some hire private security so had me saying why spend $1 -2 mil on a prison
It’s a great place but just to busy for me so I am giving La Palma Puriscal a try, very remote mountain top area. I’m dialing in on almost 2 years here
I agree the banking system is nutty here I’m only allowed to moved $1500 a month with out raising red flags and getting my account put on hold

I find it easier to just charge every thing on my rewards credit cards, I get the benefit of the flyer miles and works great because I travel often

CR is a great country just has its obstacles to deal with and the people are mostly nice, but in the city area the angry drivers make us New York people look like saints

Figure I would clarify some from my previous post

Ginger Firestone

Yes, I've heard that Escazu was the Beverly Hills of CR and it's why I didn't want to move there.  I mean seriously, why bother coming to another country if you want to only be around your own?  I moved for political reasons and while I wished I had been in the states for Trump's admin, I'm more than glad I'm here now.  When my son comes to visit next month I have told him we are taking a day trip to Escazu for the shopping.  I hear they carry a lot of American stuff they don't sell here.  I'm not far from Turrialba.  He always needs an extra suitcase just to bring me by "care packages" so if I could find more stuff here, he will have less to bring.

I can't drive in San Jose because the drivers are crazy, but my son can drive as crazy as the locals so he drives me around when he's here.  I can drive as far as EPA and that's about my limit.  Mostly once a month I go to WalMart and PriceSmart in Tres Rios for the big shopping.  I like the quiet of my small rural area.

JBuonopane12

Totally understand you I lasted 18 months in Escazu and it was just to stressful and no change in cost of living from my Jersey place
I will do the trip once a month to Walmart and price smart in Escazu. Actually heading to EPA today for a few things, EPA is the Home Depot look a like here for others following

Automecado is the super market with A lot of American brands. Shit they carry the pasta sauce from  Raos restaurant in Harlem
That’s like finding Gold.  Yes I buy jar sauce these days now that a swing single not worth making a pot for 1

Each day is a venture in CR

Henrych

Ginger Firestone wrote:

Yes, I've heard that Escazu was the Beverly Hills of CR and it's why I didn't want to move there.  I mean seriously, why bother coming to another country if you want to only be around your own?  I moved for political reasons and while I wished I had been in the states for Trump's admin, I'm more than glad I'm here now.  When my son comes to visit next month I have told him we are taking a day trip to Escazu for the shopping.  I hear they carry a lot of American stuff they don't sell here.  I'm not far from Turrialba.  He always needs an extra suitcase just to bring me by "care packages" so if I could find more stuff here, he will have less to bring.

I can't drive in San Jose because the drivers are crazy, but my son can drive as crazy as the locals so he drives me around when he's here.  I can drive as far as EPA and that's about my limit.  Mostly once a month I go to WalMart and PriceSmart in Tres Rios for the big shopping.  I like the quiet of my small rural area.


This is why I've chosen Osa and I am moving here also for political reasons.

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