Permanently Import Your Vehicle to Mexico
You may be considering a move to Mexico in the near future, or maybe you found the perfect vehicle just across the US border. If so, you might wonder how to permanently import your vehicle to Mexico. There are several factors involved that may help you decide.
Do I Need to Permanently Import my Vehicle to Mexico?
If you are a tourist staying for less than 180 days, or are a temporary resident, you may drive a foreign-plated car in Mexico on a temporary import permit. A Mexican national, however, knows that it is illegal to drive a foreign-plated car in Mexico.
If you are a permanent or temporary resident, you can straddle the laws of both nations by maintaining your citizenship outside of Mexico you maintain diplomatic rights as a foreign visitor. You will be encouraged to import a vehicle, but as long as you maintain the vehicle’s legal status in the origin country, and maintain the foreign tourist insurance, there is nothing the Mexican officials can do about it. They of course prefer to tax the cars in their own country, and require their domestic control. However, the wise tourists in Mexico know better than to fully subject themselves and their personal data to an emerging country that struggles to hold data security violators accountable.
As a decision you must decide, either to naturalize the vehicle through importation process and therefore removing any origin country protections and vehicle history, or sell the vehicle and buy a different one in Mexico.
Keeping a U.S. Vehicle in Mexico
Can you go back and forth every 180 days with a temporary import permit? Yes, as an American citizen you have other considerations like quality of insurance, personal data security, and of course the devaluation of your vehicle once you export it to a “developing nation.”
- You will not be able to fully insure the vehicle again in the United States once you permanently export your car to Mexico.
- It is cost prohibitive to re-import the vehicle back to the United States
- With Mexican vehicle registration you are stuck with the domestic Mexico insurance system and their lack of accountability related to data security, and insurance agent licensing protocols.
- If you are wealthy and value your privacy and serenity – sell your car and buy a Mexican registered vehicle. Permanently importing your vehicle and downgrading your legal status is something you need to consider seriously. The difference between financial systems and agencies in the US and Mexico are night and day opposites.
- When you import your car to Mexico from the U.S. or Canada, you are decreasing its value and making it uninsurable in the northern developed countries for collision and theft for the rest of its life.
If permanently importing your vehicle into Mexico is something you still consider, there are several things to do:
- Be sure your vehicle meets the requirements.
- Know what fees you are subject to.
- Get the right documentation together.
- Hire a broker (this is a Mexican Government requirement.)
Mexico Vehicle Importation Requirements
- The vehicle has to be in working condition.
- There can be no liens on the vehicle.
- The vehicle must have a clean title (no salvage vehicles).
- A car from Canada may be imported IF it has never been registered in Canada.
- Only North American made cars, trucks, SUVs, motorcycles, and vans are eligible. The only exception to this rule is classic cars (30 years or old). They may be from any country of origin.
What Does it Cost to Permanently Import a Car to Mexico?
The fees can be quite hefty and mainly depend on where you will live in Mexico.
There are 2 different fees that apply: VAT (Value Added Tax) and Import tax.
Both of these taxes use the value of the car to determine the tax by customs.
- VAT: You must pay 16% of the Vehicle’s Value.
- Import Tax: You must pay an import tax IN ADDITION to the VAT.
Required Documentation:
You will need:
- The original title (It does not have to be in your name)
- Permanent Residence Card
- Photo of the miles, vehicle information decal, and vehicle
Hire A Broker to Permanently Import your Vehicle to Mexico:
The government of Mexico REQUIRES you to have a customs broker handle the importing of your vehicle. The broker will be a liaison between you and Mexican customs. The broker will help you gather the correct documents, tell you the exact fees you will have to pay, and walk you through the importation process. There are plenty of options for customs brokers online that will be willing to help you.
Once I Have All My Documents, How Long Does the Actual Import Process Take?
To export the vehicle out of the United States, US customs will typically take 96 hours. 72 hours to process the exportation (unless you send your documents in ahead of time) and an additional 24 hours to get the vehicle to Mexican customs. Once Mexican customs have the vehicle, It will take approximately 3 days to get the invoice and vehicle back to you. The broker will coordinate this.
What Does The Process at The Border Entail?
Be sure to get to the Laredo, Texas, office during work hours Monday through Friday.
They will take photographs and perform an emissions test on the vehicle. Then, you need to empty the vehicle completely so that it can undergo an inspection. This inspection includes “gamma ray” to ensure nothing illegal is hidden anywhere. Then the vehicle will go to the Banjercito to satisfy the legal requirements for importation. Once everything is complete, you will receive your documentation and a transfer permit which provides you 5 days to register your vehicle in your Mexican state of residence.
Can I Avoid Permanently Exporting my Vehicle to Mexico?
As you can imagine, some people try to avoid the lengthy process of importing a US car into Mexico, especially those living in border cities. What is a “Chocolate Car”? Mexican citizens who drive foreign vehicles in Mexico without legally registering them in Mexico give them this name. “Chueco” in spanish means “Crooked” in english. A lot of stolen or unregistered vehicles from the United States that are operating in those border towns they crack down to get a valid registration. If you get caught operating a “chocolate” car, which is basically foreign and unregistered or expired, it can be towed. If you operate a foreign vehicle in Mexico, just make sure you keep the registration up to date.
Other Options:
With hundreds of thousands of people living on the Mexican-American border, there is a special type of registration you can get for your car to move through the border easily. With “Vehículos Fronterizos,” you will receive a special license plate that allows you to drive 20km from the border into Mexico or the United States. This process can be completed at the Banjercito on either side of the border.
- Vehicle Requirements: Cars, trucks, SUVs, motorcycles, and vans must be manufactured in North America. The vehicle must be 5-9 years old at the time of importation.
- Fees: If the vehicle is 5-9 years old at the time of importation, 1% of the vehicle’s value must be paid as import tax. If the vehicle is older than 10 years, 20% of the vehicle’s value must be paid as import tax. In addition, 11% VAT of the vehicle’s value will be charged.
- Required Documentation: original title, proof of residency, and photo of the vehicle information decal.
Admittedly, the Mexican government has made it difficult to permanently import or naturalize your vehicle. After considering everything involved in this process, you may choose to sell your car in the originating country and buy a different one in Mexico. If so, check out our article on how to purchase a vehicle in Mexico.
