Looking For New Cars! Are Cars Cheaper In Mexico?

The attitude of purchasing a car from a foreign country and importing it has experienced growth. People are more interested in purchasing it from other countries due to the surge in cheaper rates of cars. This has been the case between the US and Mexico.

There has been an increased exchange rate between these two countries in terms of products. This includes service charges, import charges, customs charges, and many more. It is interesting to note that the concept of used products has been widespread in Mexico.

This article deals with the cars and their prices. By the end of the article, one will get to know if cars are cheaper in Mexico or not.

1. An Insight Into the Factors Determining Car Prices

1.1. Models of the Car

Popularity is the key when one looks for a new product be it a car. One always looks for the advanced model of a car. It is obvious as it includes all new technologies and advancements. This is a major checkpoint which sets the price of the car. Used cars or old model cars will be priced lower.

Appearance and looks are also the determining factors when it comes to the model of the car. New models are more classy in look and attract the crowd. So one may get biased about the looks and dimensions of the car. A used car can be chosen in terms of appearance and condition of it.

Sometimes, the color of the car plays an important role. Solid colors like grey, white, and black are more in demand than bright colors like yellow and red. So, the model plays an essential role in this.

1.2. Company and Its Services

Services are the most important factor that matters after a car is sold. At some point in time, buyers will need to visit the service centers for maintenance. So one will look for those companies whose after-service is well managed. The centers should be available in major locations.

This is also important when one opts to sell a used car. Buyers look for the condition of the car – how well is the condition, how well the services are done by the owner, and so on.

1.3. History of the Car

This section deals especially with used cars or second-hand cars. The history includes details of the car when it was purchased, any accidents involved with the car, insurance history, and other necessary details. One should also do the transfer of registration certificates and ownership heads.

1.4. Car Mileage

This becomes an essential factor when choosing a car. Be it a second-hand car or a new car, customers will look for cars with a higher range of mileage. This will prove fruitful to them in the long run. Second-hand cars with higher mileage go for higher prices.

1.5. Miscellaneous Charges

Buying a new car does not include the costs of features and other accessories. But it also includes other registration fees. It may be in terms of license, registration certificate, insurance, and so on. If one wishes to transfer to another country, then cross-border charges, security fees, mandatory taxes, import duties, and so on. Hence, it overall increases the rate and the purchaser has to map the budget according to it.

In the case of second-hand car options, transfer of ownership, transfer of insurance policies, and maintenance charges are some extra burdens a purchaser needs to bear.

2. What is the Average Price of a Car in Mexico?

Besides the actual price of a car, there are some other charges. It includes translator charges (if you are a foreigner), gasoline, auto insurance, and registration fees.

If you have any relations in Mexico then it would reduce your translator price. Otherwise, translators charge high as compared to other countries. So, it will be a great saving and will not alter your budget.

The price of used cars in Mexico is significantly low. The sole price of the car usually ranges low. But one needs to be careful and should not get biased with the prices of used cars. It may come up with maintenance charges after you purchase and a huge investment will need to be made for that. It is common for second-hand cars to suffer breakdowns more frequently.

Fuel charges are one of the significant factors. We have discussed mileage and how it plays an important role. But in Mexico, the fuel charges or the gasoline charges are comparatively low. If one wishes to drive it for in-country purposes, then one may not face higher prices. But if one imports, let’s say to the US, then they might have to give higher fuel prices. The price in Mexico is 1.28 USD per liter.

The auto insurance policy or any insurance policy is the utmost requirement. There are types of insurance like third party and fees vary according to it.

The other charges may include sales taxes. The other one is the ownership charges cum taxes. It may vary from place to place and one has to research lower tax options.

3. Why Cars in Mexico are More Expensive?

The car prices are not only limited to the sole price of the car. But it also includes maintenance and after-sell service. Hence, it is considered that in Mexico, purchasers often find it expensive to buy a car.

We have already discussed that fuel charges are high in Mexico. So one has to bear that as fuel charges are the biggest factor after the car is purchased. Applying and registration fees in Mexico are also high. It is high in comparison to the United States.

So it has been observed that the United States is the biggest market for automobiles and other automotive parts. Cross-country business happens and often people buy and import it to the United States. Although they need to pay a stipulated amount extra in the form of duty charges, immigration charges, and so on. But it is only a one-time investment type rather than investing regularly in Mexico.

We can say that customers from the United States play an instrumental role in the economy of the automobile industry of the Mexican country.

4. Can I Buy a Car in Mexico and Bring It to the US?

It’s an important section as it will deal with the rules and regulations that need to be followed while importing cars from Mexico to the United States.

If one wishes to drive it to the United States, then the permission is limited to one year. It is then to be returned otherwise it will be detained by authority. But one cannot sell a car under these circumstances.

For legal transfer or import, one needs to follow these steps:-

• The interior and exterior of the cars need to be cleaned. Any poster or other posted information on the body of the car is not allowed. No documents or personal belongings should be present while shipping or importing. It is made under illegal actions.
• Payments should be cleared for all legal taxes and other duty prices. Importing an item includes many charges and taxes.
• If you are ready to ship the car, then you should show the shipping bill at the immigration checkpoint. It should include all necessary details like owner name, item details, and so on.
• The purchasing bill for the car is a must and should be presented before the immigration center. Failing to do this, action will be taken against the owner under smuggling.
• One needs to be knowledgeable regarding the laws in the United States. The imported car should meet the requirements of US roadways, the Environmental Clearance Act, and other requirements. Failing to do this, one cannot drive cars and the cars might get detained.
• Inform the authorities about the shipping once you bring the car to the United States. One should register for the insurance policy first. Then shift your focus to environment clearance registration and other emission tests. Once all inspections are done, then you will get the number plate and you are allowed to drive on the roads of the United States.

5. How Much Does It Cost to Bring a Car From Mexico to the US?

The total cost of bringing a car from Mexico to the United States includes:-

• Duty charges are usual when we import or export items-parcels. It is completely dependent on the country’s rules and regulations. But one can import cars under duty-free scheme. It is applicable for military officers and ex-US diplomats. They need not pay extra charges just like any normal citizens. There is another case where a visitor coming to the United States can borrow their cars along with them for personal use. But in this case, one needs to ensure the return of the car as soon as they leave the country.
• The price of a car along with taxes is the primary thing while purchasing it in Mexico. It will depend on the model and new technologies. But once it is transferred to other countries, some extra charges are taken.
• The insurance charges of both countries are different. So it is advisable to register for car insurance policies in the US to reduce the burden of money.
• The next list of charges will be the registration charges in both countries. It will include the initial charges after purchasing and also the charges when you present it in front of an authority in a new country. Transfer of ownership can be an extra burden. Clearance from various authorities, document verification, and paperwork may attract many other charges.
• If one wishes to change the outer look of the car, according to the new country’s requirement or setting trend, it will attract new charges. But this comes under personal interests and so can be placed under the miscellaneous charges section.

FAQ

What are the factors affecting the price of the car?

The factors which affect the price of cars are as follows:

• Models of the car.
• Company and its service.
• History of the car.
• Condition of the car in case of second-hand cars.
• Other miscellaneous charges determine the budget of the purchaser.

How much do immigration charges influence the price of a car?

Immigration or import charges play a big role in determining the overall budget of a car. It is different for different countries. It is based on taxes, the current exchange rate, and many more. In this article, we have discussed the United States and we saw how it is a big factor in importing.

What are the basic steps one needs to follow while importing a car?

• One should be knowledgeable about the rules and regulations of the country.
• One should carry all necessary documents and paperwork while submitting to the authority.
• One should have paid duty and other requirement charges. Then he/she should submit it.
• One should carry original bills of anything related to the car.
• In the case of tourism, one should fulfill those requirements which are necessary to take the car back after the trip.

In The End

We already got an insight into the Mexican automobile industry in this article. But the question of whether it is cheaper or expensive depends on one’s usage requirement.

But definitely, the sole prices of cars are cheaper in Mexico. It exports many automobile parts worldwide and is a bigger market. But after-sale charges play a role and make it expensive. So one can go for importing the car to their own respective countries. It may reduce the maintenance and service charges.

In this article, we have discussed the importing rules and ways to the United States. It needs to fulfill the rules and regulations of the US and one should have done all paperwork legally.

Last Updated on March 20, 2024 by laibaarif