# Advice for a National



## ZaPatton (Aug 17, 2015)

I have had dual citizenship from the US and Mexico all my life but have living in the US since 4. I am in my 40s now looking to smi move back into Mexico untill I can fully move back.
I have tons of family in Colima where I plan on moving back. What are some perks I can get if I buy home own start a business etc... in Mexico as national?
Also does anyone know anything about the INFONAVIT program?

Any help or advice will help!


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## sparks (Jun 17, 2007)

I believe INFONAVIT is for people working in Mexico that have dependable jobs of a certain quality. Low down payment and low monthly. Many of those INFONAVIT tracts are over built and not selling and some are falling apart when not that old. You can buy INFONAVIT houses pretty cheap but without government help.

Colima has one of the best economies and infrastructures in Mexico.

Hope you really know your business because they open and close like musical chairs.


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## ZaPatton (Aug 17, 2015)

sparks said:


> I believe INFONAVIT is for people working in Mexico that have dependable jobs of a certain quality. Low down payment and low monthly. Many of those INFONAVIT tracts are over built and not selling and some are falling apart when not that old. You can buy INFONAVIT houses pretty cheap but without government help.
> 
> Colima has one of the best economies and infrastructures in Mexico.
> 
> Hope you really know your business because they open and close like musical chairs.


As a Citizen what kind of help would or could the Mexican govt offer me if I were to purchase home or start a business. Can I get lower interest rates and do I have fresh credit score in Mexico since I have not bought anything?
How about car insurance and health insurance how much would it be. Does being a Mexican citizen really help in these areas as compared to being a resident?
So the INFONAVIT homes are low quality?
Thank you Sparks


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## maesonna (Jun 10, 2008)

To the best of my knowledge, as a citizen you don’t have an advantage over a resident for most of the things you mention. Legal residents are entitled to all the same things at the same prices. The only difference I’m aware of might be in the case of owning a business, or of purchasing property in the restricted area.

Your big, big advantage is that you can accept any job freely, in contrast to a foreigner residing in Mexico, who has to go through a series of bureaucratic steps (including fees) and fulfill certain requirements to be authorized to work and legally hold a job.


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## ZaPatton (Aug 17, 2015)

maesonna said:


> To the best of my knowledge, as a citizen you don’t have an advantage over a resident for most of the things you mention. Legal residents are entitled to all the same things at the same prices. The only difference I’m aware of might be in the case of owning a business, or of purchasing property in the restricted area.
> 
> Your big, big advantage is that you can accept any job freely, in contrast to a foreigner residing in Mexico, who has to go through a series of bureaucratic steps (including fees) and fulfill certain requirements to be authorized to work and legally hold a job.


Thanks Maesonna, So as a resident you can receive pensions and those sort of benefits from the govt if you worked in Mexico? I remember some Canadians back in the 90s in Colima the snowbirds! They were looking to buy Brian Adams cd's 

Where and what is the restricted zone?


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## TundraGreen (Jul 15, 2010)

ZaPatton said:


> Thanks Maesonna, So as a resident you can receive pensions and those sort of benefits from the govt if you worked in Mexico? I remember some Canadians back in the 90s in Colima the snowbirds! They were looking to buy Brian Adams cd's
> 
> Where and what is the restricted zone?


Foreigners are prohibited from buying property within 50 km of a coast or 100 km of a border. In those areas foreigners have to let a bank hold the property in trust for them (called a Fideocomiso in Spanish).


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## sparks (Jun 17, 2007)

ZaPatton said:


> How about car insurance and health insurance how much would it be. Does being a Mexican citizen really help in these areas as compared to being a resident?
> So the INFONAVIT homes are low quality?


Seguro Popular is free but limited and IMSS is like $350us a year. Auto INS like $250us

Infonavit houses are not poor quality, just small and you usually share a wall with your neighbors


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## ZaPatton (Aug 17, 2015)

sparks said:


> Seguro Popular is free but limited and IMSS is like $350us a year. Auto INS like $250us
> 
> Infonavit houses are not poor quality, just small and you usually share a wall with your neighbors


What limitations does Seguro Popular have for citizens?

I heard Infonavit is stricter in where you can buy a home it has to be in short distance to schools buses etc... They also allow you to buy and land and used homes under the program?

250 a year for car Ins wow thats cheap!!


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## ZaPatton (Aug 17, 2015)

TundraGreen said:


> Foreigners are prohibited from buying property within 50 km of a coast or 100 km of a border. In those areas foreigners have to let a bank hold the property in trust for them (called a Fideocomiso in Spanish).


What is the logic behind having the bank hold it? Have you heard of any expats going into business with Nationals to be able to buy properties in those zones?


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## TundraGreen (Jul 15, 2010)

ZaPatton said:


> What is the logic behind having the bank hold it? Have you heard of any expats going into business with Nationals to be able to buy properties in those zones?


I don't know about the logic behind the banks holding the title. The constitution of 1917 prohibits non-Mexicans from buying property near the coasts or borders. I think it had to do with national security. It is kind of obsolete in today's world but it is still on the books. However, banks are allowed to create trust agreements in favor of foreigners. 

Regarding businesses, I am no expert but I believe foreigners can incorporate a business which can then hold the property. I don't think you even need a Mexican partner. But as I said, I am no expert on that topic.


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## michmex (Jul 15, 2012)

sparks said:


> Seguro Popular is free but limited and IMSS is like $350us a year. Auto INS like $250us
> 
> Infonavit houses are not poor quality, just small and you usually share a wall with your neighbors



Go to the Source

Click on the Link to Infonavit

Inicio


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## ZaPatton (Aug 17, 2015)

TundraGreen said:


> I don't know about the logic behind the banks holding the title. The constitution of 1917 prohibits non-Mexicans from buying property near the coasts or borders. I think it had to do with national security. It is kind of obsolete in today's world but it is still on the books. However, banks are allowed to create trust agreements in favor of foreigners.
> 
> Regarding businesses, I am no expert but I believe foreigners can incorporate a business which can then hold the property. I don't think you even need a Mexican partner. But as I said, I am no expert on that topic.


Thanks for the info!! I have family that owns homes in Manzanillo and Tecoman and say they have been approached on many occassions from expats to buy property for them. I saw this a big deal in Cuba a few months back but now who knows with the flag raising in Havana


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## sparks (Jun 17, 2007)

ZaPatton said:


> Thanks for the info!! I have family that owns homes in Manzanillo and Tecoman and say they have been approached on many occassions from expats to buy property for them. I saw this a big deal in Cuba a few months back but now who knows with the flag raising in Havana


Actually a Mexican loans their name to a foreigner and it's called "Presta Nombre". A lawyer will then draw up a Carta de Poder (power of attorney) giving control of the land to the foreigner. Usually only do that on property that you can't get a trust for like Ejido land. Careful because in Jalisco a Carta de Poder is only good for 5 years


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## maesonna (Jun 10, 2008)

ZaPatton said:


> What limitations does Seguro Popular have for citizens?


It has nothing to do with citizens or not, any legal resident of Mexico can enroll in Seguro Popular. But SP doesn’t cover certain conditions, even some life-threatening ones. 
One example is kidney failure. If a poor family covered by Seguro Popular has a member with kidney failure, who needs dialysis or a transplant to stay alive, too bad for them. They have to scrape up the money if they want their loved one to get treatment because Seguro Popular doesn’t cover it.



ZaPatton said:


> 250 a year for car Ins wow thats cheap!!


It sure is. We pay more like 9000 pesos a year.


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## sparks (Jun 17, 2007)

There are different levels of coverage


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## Isla Verde (Oct 19, 2011)

sparks said:


> There are different levels of coverage


Coverage of what?


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## RVGRINGO (May 16, 2007)

There are different levels of coverage for car insurance.


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## ZaPatton (Aug 17, 2015)

sparks said:


> Actually a Mexican loans their name to a foreigner and it's called "Presta Nombre". A lawyer will then draw up a Carta de Poder (power of attorney) giving control of the land to the foreigner. Usually only do that on property that you can't get a trust for like Ejido land. Careful because in Jalisco a Carta de Poder is only good for 5 years


So after 5 years, does the property go to the national on the contract? What is Ejido Land?


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## ZaPatton (Aug 17, 2015)

RVGRINGO said:


> There are different levels of coverage for car insurance.


what plan do you use?


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## maesonna (Jun 10, 2008)

And of course, the value (age and make) of the car can make quite a difference.


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## sparks (Jun 17, 2007)

ZaPatton said:


> So after 5 years, does the property go to the national on the contract? What is Ejido Land?


Well it could "*go to*" the National if they were unfriendly and knew the length of the Carta de Poder ..... because the actual property papers are in their name. Best to get new papers about 4.5 years in Jalisco. Evicting people from property in Mexico is not easy. 

Way back when, when old Haciendas were broken up the government distributed the land to communities. It was then communal land and could only be used and not owned by individuals. Some Ejidos are normalizing the land so that it can have a real title. Many are beach communities because the value goes up with title


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## Cristobal (Nov 25, 2014)

The prestanombre form of ownership is illegal.


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## ZaPatton (Aug 17, 2015)

Cristobal said:


> The prestanombre form of ownership is illegal.


What does the govt do if found out?


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## Hound Dog (Jan 18, 2009)

*QUOTE=ZaPatton;7970769]...How about car insurance and health insurance how much would it be. Does being a Mexican citizen really help in these areas as compared to being a resident?....*_

We are Mexican citizens through naturalization and have had insurance on our two Mexican plated cars, two homes in Jalisco and Chiapas respectively and major medical through AXA for years. These policies were taken out years ago when we were temporary residents, were continued when we became permanent residents and then citizens. Our insurance premiums have remained the same for all insurance regardless of our residency or citizenship status in Mexico. The insurance companies provide no premium discounts for citizenship in our experience.

We became Mexican citizens not in an attempt to save money here and there or buy property in fee simple on the sea or adjacent to a border but as an affirmation of the fact that we live here full time and are committed to our new homeland in every respect. It also pleases us that we are no longer subject to posssibly capricious changes in federal statutes governing our rights and responsibilities as non-citizen residents. When we received our Mexican citizenships, the SRE representative took away our "Inmigrado" cards and made it clear that we were no longer beholden to immigration authorities in any way. We like that._


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## TundraGreen (Jul 15, 2010)

ZaPatton said:


> So after 5 years, does the property go to the national on the contract? What is Ejido Land?


Ejido land:

During the revolution, in the early 1900s, the government took over land from wealthy landowners and gave the title to pueblitos, the people in the small towns that were actually working the land. The result is that the land in many rural areas now belongs to a village rather than an individual. The village, ejido, elects representatives who are responsible. But the problem is that the whole village has to agree to sell any part of their land. You can buy it, think you have a clear title, then one of the villagers can complain and the title is then in dispute. The bottom line is that you need to be very careful if you are buying property that belongs to an ejido.


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## WintheWin (Jul 15, 2015)

Anyone here using Seguro Popular?
It gets massive complaints, because, being part of Salubridad.
They run out of material/equipment/service much earlier than IMSS.

Only the very poor use SP, better to go with IMSS.

Even though now that the healthcare laws are changing, it seems that IMSS won't cover a lot. 

Car insurance in Mex rocks!
My gam is buying a new car, total insurance… including USA insurance… is like 10,000 pesos. Her deductible is 3% of estimated damage. Woot. If only the US was as generous with their policies. (God, I'm paying 400 every 6 months, for a 2010 car. u.u )


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## coondawg (May 1, 2014)

WintheWin said:


> My gam is buying a new car, total insurance… including USA insurance… is like 10,000 pesos. Her deductible is 3% of estimated damage. Woot. If only the US was as generous with their policies. (God, I'm paying 400 every 6 months, for a 2010 car. u.u )


BTW, are they giving you that 10 year, 100,000 mile (160,934 kilometers) warranty on your new car that seems to be the new standard NOB, too?


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## ZaPatton (Aug 17, 2015)

Hound Dog said:


> *QUOTE=ZaPatton;7970769]...How about car insurance and health insurance how much would it be. Does being a Mexican citizen really help in these areas as compared to being a resident?....*_
> 
> We are Mexican citizens through naturalization and have had insurance on our two Mexican plated cars, two homes in Jalisco and Chiapas respectively and major medical through AXA for years. These policies were taken out years ago when we were temporary residents, were continued when we became permanent residents and then citizens. Our insurance premiums have remained the same for all insurance regardless of our residency or citizenship status in Mexico. The insurance companies provide no premium discounts for citizenship in our experience.
> 
> We became Mexican citizens not in an attempt to save money here and there or buy property in fee simple on the sea or adjacent to a border but as an affirmation of the fact that we live here full time and are committed to our new homeland in every respect. It also pleases us that we are no longer subject to posssibly capricious changes in federal statutes governing our rights and responsibilities as non-citizen residents. When we received our Mexican citizenships, the SRE representative took away our "Inmigrado" cards and made it clear that we were no longer beholden to immigration authorities in any way. We like that._


_

Must be a good feeling having that label taken away._


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## ZaPatton (Aug 17, 2015)

WintheWin said:


> Anyone here using Seguro Popular?
> It gets massive complaints, because, being part of Salubridad.
> They run out of material/equipment/service much earlier than IMSS.
> 
> ...


For both countries thats insane!!


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## WintheWin (Jul 15, 2015)

coondawg said:


> BTW, are they giving you that 10 year, 100,000 mile (160,934 kilometers) warranty on your new car that seems to be the new standard NOB, too?


I've heard 10 year/100k miles is only for Hyundai, and that accounts for perceived reliability issues.

It's a Honda Accord, they're giving it with the 4 year/36,000 mile warranty.

When my gams bought her Camry in 2010, it came with no warranty, or a very limited one, and she needed to purchase separate drivetrain/powerplant warranty. Toyota's are dead reliable, but at least here, the service department was god-awful. (Wouldn't honor recall notices, WTF?!!)


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## coondawg (May 1, 2014)

WintheWin said:


> I've heard 10 year/100k miles is only for Hyundai, and that accounts for perceived reliability issues.
> !)


Actually, there are more than Hyundai that offer that great warranty NOB. My family has owned Kias since 2006 (with 10/100,000), 3 different ones, and their reliability is as good, or better than Ford, Chevy. I see they are selling them in Mexico now. We checked on a new Chevy here last Fall, and the warranty was only 12 months or 12,000 KM. That is ridiculous, but that is how it is here. Standards and safety features are still not the same here and NOB in everything.


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## sparks (Jun 17, 2007)

Cristobal said:


> The prestanombre form of ownership is illegal.


But a Carta de Poder isn't ....... prestanombre is just a description of the process
It's done a lot here


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## AlanMexicali (Jun 1, 2011)

coondawg said:


> Actually, there are more than Hyundai that offer that great warranty NOB. My family has owned Kias since 2006 (with 10/100,000), 3 different ones, and their reliability is as good, or better than Ford, Chevy. I see they are selling them in Mexico now. We checked on a new Chevy here last Fall, and the warranty was only 12 months or 12,000 KM. That is ridiculous, but that is how it is here. Standards and safety features are still not the same here and NOB in everything.


We bought a new VW here and the complete warranty on everything including the interior was 3 years or 45,000 kilometers. We had to go to a VW authorizied new car dealer and get their every 15,000 Km service to keep the warranty valid. They even steamed cleaned the motor compartment and detailed the car every service and gave me taxi vouchers to get home and back.


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## WintheWin (Jul 15, 2015)

coondawg said:


> Actually, there are more than Hyundai that offer that great warranty NOB. My family has owned Kias since 2006 (with 10/100,000), 3 different ones, and their reliability is as good, or better than Ford, Chevy. I see they are selling them in Mexico now. We checked on a new Chevy here last Fall, and the warranty was only 12 months or 12,000 KM. That is ridiculous, but that is how it is here. Standards and safety features are still not the same here and NOB in everything.


Those are solid cars, I'll give you that, but generally speaking… I feel they lack character.

Nothing beats going 65 mph, 4th gear, in a Mexi Beetle.  

Helps to reassert how fragile life is. 

Regardless, 
The dealership "experience" is something a vast majority of Mexicans can't afford…
When you do the price conversion, they're on par with US prices,
However, the average interest rate here is somewhere along 25 apr…
Coupled with consistently lower wages, many working professionals can usually only afford anywhere between 1-3 dealership, year-make-model vehicles, in their lifetime.

(Of course, I'm referring to the "flagship" models, not taking into the account the SUPER ECONO CLASS vehicles most makes produce in Mexico… Atos/Nissan Tsuru/Chevy Comfort/Etc…)

If the country offered reasonable credit, that'd be more stimulating for the economy. Maybe we wouldn't see so many 80's-90's Honda Civics/Nissan Sentra/Toyota Corolla's on the road. The passing from the "Verificacion" does little to pressure car owners into newer car ownership, since if their cars "fail" it's just easier to put fake plates on top, than to purchase a new vehicle. This is facilitated because we're very close to the border, don't know how the car situation is like deeper into the republic.


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## coondawg (May 1, 2014)

WintheWin said:


> Those are solid cars, I'll give you that,
> Nothing beats going 65 mph, 4th gear, in a Mexi Beetle.
> 
> Helps to reassert how fragile life is.


Down hill !


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## ZaPatton (Aug 17, 2015)

sparks said:


> But a Carta de Poder isn't ....... prestanombre is just a description of the process
> It's done a lot here


But in this process it is only good for 4 years?


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## Cristobal (Nov 25, 2014)

sparks said:


> But a Carta de Poder isn't ....... prestanombre is just a description of the process
> It's done a lot here


A lot of things are "done a lot" here. That doesn't make them legal. What you call a "description" has a formal legal term, testaferro. The use of prestanombres isn't limited strictly to small residential plots owned by foreigners. It is a tactic used as a subterfuge by many people that don't desire their name to be on deeds of property (or busunesses) for one reason or another.


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## Cristobal (Nov 25, 2014)

coondawg said:


> Actually, there are more than Hyundai that offer that great warranty NOB. My family has owned Kias since 2006 (with 10/100,000), 3 different ones, and their reliability is as good, or better than Ford, Chevy. I see they are selling them in Mexico now. We checked on a new Chevy here last Fall, and the warranty was only 12 months or 12,000 KM. That is ridiculous, but that is how it is here. Standards and safety features are still not the same here and NOB in everything.


I just bought a new Toyota Tacoma. 3 years, 60,000km. My wife's late model Mazda has the same warranty.


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## Cristobal (Nov 25, 2014)

WintheWin said:


> The dealership "experience" is something a vast majority of Mexicans can't afford…
> When you do the price conversion, they're on par with US prices,
> However, the average interest rate here is somewhere along 25 apr…
> Coupled with consistently lower wages, many working professionals can usually only afford anywhere between 1-3 dealership, year-make-model vehicles, in their lifetime.
> ...


Toyota Mexico is offering 9.9%. That is the same as I can get at Bancomer. Credit card interest is very high, in the 20-25% range, but not auto loans.


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## WintheWin (Jul 15, 2015)

Cristobal said:


> Toyota Mexico is offering 9.9%. That is the same as I can get at Bancomer. Credit card interest is very high, in the 20-25% range, but not auto loans.


Maybe if you have very high earnings, most people don't qualify for that interest range.
At least not the people that I know, mostly nurses (which is a pretty healthy wage), they end up paying in interest, the MSRP of the next-model-up.

(I.E… you buy a corolla, and end up paying what a Camry would've cost, because of interest.)


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## coondawg (May 1, 2014)

Last year my son bought a new car NOB and he paid 1.88% interest, for 5 years. A really insignificant amount.


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## sparks (Jun 17, 2007)

ZaPatton said:


> But in this process it is only good for 4 years?


It may differ from State to State but a Carta de Poder is good for 5 years in Jalisco


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## Cristobal (Nov 25, 2014)

WintheWin said:


> Maybe if you have very high earnings, most people don't qualify for that interest range.
> At least not the people that I know, mostly nurses (which is a pretty healthy wage), they end up paying in interest, the MSRP of the next-model-up.
> 
> (I.E… you buy a corolla, and end up paying what a Camry would've cost, because of interest.)


Your payments depend on the amount you borrow and for how long. Just like anywhere else. Put enough down and take a shorter term loan and the payments will obviously by less.

And while many people can't afford a new vehicle, there are many that can. Take a look at all of the cars on the street. There are lots of very nice new cars on the roads. And a lot are very expensive models.


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## TundraGreen (Jul 15, 2010)

Cristobal said:


> Your payments depend on the amount you borrow and for how long. Just like anywhere else. Put enough down and take a shorter term loan and the payments will obviously by less.
> 
> And while many people can't afford a new vehicle, there are many that can. Take a look at all of the cars on the street. There are lots of very nice new cars on the roads. And a lot are very expensive models.


Actually, the shorter the term of the loan, the higher the payments. A short term loan lowers the overall costs but not the monthly payment. But I think you knew that and just mistyped.


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## coondawg (May 1, 2014)

My son put nothing down, and his interest for 5 years was paltry, and his payments were not much. I even thought about buying one, may still yet.


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## RVGRINGO (May 16, 2007)

Don‘t forget the mandatory added monthly cost for comprehensive/collision insurance.
You could consider using your down payment as a full cash payment for a used car. It will be yours, paid in full, and will require only liability insurance. Anything more is up to you. There are a lot of good used cars available, if you know how to pick them. 
Then, put what you would have paid in monthly payments into the bank each month. Mark that account for car maintenance and future car purchase. You will come out ahead.
The last bit of advice: Base your decisions upon “need“, not upon “want“.


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## Cristobal (Nov 25, 2014)

TundraGreen said:


> Actually, the shorter the term of the loan, the higher the payments. A short term loan lowers the overall costs but not the monthly payment. But I think you knew that and just mistyped.


Yes, I didn't articulate that very well. The overall amount of interest you pay will be less.


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## Cristobal (Nov 25, 2014)

coondawg said:


> My son put nothing down, and his interest for 5 years was paltry, and his payments were not much. I even thought about buying one, may still yet.


This board is about Mexico not for praising the uSa.


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## ZaPatton (Aug 17, 2015)

TundraGreen said:


> Actually, the shorter the term of the loan, the higher the payments. A short term loan lowers the overall costs but not the monthly payment. But I think you knew that and just mistyped.


I heard Puebla is the cheapest state in Mexico to buy a car..


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## WintheWin (Jul 15, 2015)

Cristobal said:


> This board is about Mexico not for praising the uSa.


I don't see the comments here as praising the USA, but instead, making apparent how the Mexican Automobile industry is taking advantage of an already hindered people. 

~2% interest compared to 10%+ is considerable. 

People here don't make very much, many dealership cars are worth more than a lot of people's homes, and on top of that, they're literally raping people with absurd interest rates.

It's sad, and it's a clear abuse.

Coupled with SAT's severe restriction of car importation and absurd vehicle-related fee's…

It's clear the government has some sort of agreement with the auto industry, to pressure individuals (Pressure, not promote…) into purchasing vehicles that'll bleed them dry.

Here in Baja Norte, you can very well buy a used car,
but registering it, plates, importation of it's from CA/AZ/nearby…
Will sometimes equal the value of what you paid for the vehicle.

Public Transportation here is not an option, for many, many families it's an obligation.
It's also a service that is considerably subpar, and a considerable expense.
(Yeah… it's 12 pesos one direction, but what happens when you make 200 pesos in a 10 hour shift, and you have to pay for 2 buses to your job, and two buses back?)
Out of a 1,000$ weekly pay check, 240 pesos get converted into subpar, miserable, slow transportation.
(Yes, car ownership is its own expense, but that's a different topic.)

So many vehicles are also PRODUCED IN MEXICO, you'd figure that there'd be some sort of price/interest break for the citizenry.


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## ZaPatton (Aug 17, 2015)

WintheWin said:


> I don't see the comments here as praising the USA, but instead, making apparent how the Mexican Automobile industry is taking advantage of an already hindered people.
> 
> ~2% interest compared to 10%+ is considerable.
> 
> ...


I still live in the US and people here still get god awful IR. Ive seen as high 30% so many people have went bankrupt and have bad credit the dealerships prey on them. Unless you have 600+ credit and a big down payment the IR can be very high in the US.


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## coondawg (May 1, 2014)

ZaPatton said:


> I still live in the US and people here still get god awful IR. Unless you have 600+ credit and a big down payment the IR can be very high in the US.


It takes very little effort to have a 600+ credit rating. I've never put a down payment on a car purchase in my life, and have always been able to get good interest rates. 
But, Mexico does a very poor job of helping their consumers have better opportunities. It's all about the "big" guys, not the "little" guys. YEMD


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## ZaPatton (Aug 17, 2015)

coondawg said:


> It takes very little effort to have a 600+ credit rating. I've never put a down payment on a car purchase in my life, and have always been able to get good interest rates.
> But, Mexico does a very poor job of helping their consumers have better opportunities. It's all about the "big" guys, not the "little" guys. YEMD


So many people have foreclosures and repos now the only way they can get a car is on a high IR. Its not uncommon to see 26% or higher IR. So getting a 600 plus rating for these people is a up hill battle. Im lucky I didnt get into those bad home loans, so my credit is descent. I can get a new car if I want. Places Carmax prey on people with foreclosures.


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## Cristobal (Nov 25, 2014)

WintheWin said:


> I don't see the comments here as praising the USA, but instead, making apparent how the Mexican Automobile industry is taking advantage of an already hindered people.
> 
> ~2% interest compared to 10%+ is considerable.
> 
> ...


The price of new vehicles includes both IVA and ISAN which add considerably to the price. Those 2 taxes added around $80,000 pesos to the price of the truck I just purchased. And in dollar terms, the full price came to almost the same as it would cost in the US. So comparatively speaking, there isn't much to complain about.

Instead of some conspiracy theory about car dealerships and the government out to screw the working man you might want to instead address the low wages and concentrated capital that lead to high interest rates which make credit incredibly expensive for the working class. Just take a look at retailers such as Electra or Coppel. They give credit to the lowest wage earners at rates that keep them turning over a large share of their earnings every week seemingly in perpetuity.

Or if you prefer government obstacles to new car purchases, check out the recently enacted "ley contra el lavado de dinero".


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## WintheWin (Jul 15, 2015)

Cristobal said:


> The price of new vehicles includes both IVA and ISAN which add considerably to the price. Those 2 taxes added around $80,000 pesos to the price of the truck I just purchased. And in dollar terms, the full price came to almost the same as it would cost in the US. So comparatively speaking, there isn't much to complain about.
> 
> Instead of some conspiracy theory about car dealerships and the government out to screw the working man you might want to instead address the low wages and concentrated capital that lead to high interest rates which make credit incredibly expensive for the working class. Just take a look at retailers such as Electra or Coppel. They give credit to the lowest wage earners at rates that keep them turning over a large share of their earnings every week seemingly in perpetuity.
> 
> Or if you prefer government obstacles to new car purchases, check out the recently enacted "ley contra el lavado de dinero".


You seriously think there isn't a conspiracy between the government and automobile manufacturers in Mexico?
I mean, passing of "verification vehicular" is obviously an earnest attempt to limit pollution, it's not the government's way of pressuring folks into purchasing new cars that'll pass Mexican equivalent of smog?

They have this same thing in Cali. Difference being, more folks can afford to have cars that'll pass Smog.

Do you think people in Mexico drive ****ty cars that pollute because they want to?

Mexico is made of government sponsored monopolies. Or at the very least, many many hands are lubricated in order to 'corner' the market. 

Tecate owns pretty much every liquor license. Folks can't buy their own liquor licenses in Baja. You use to be able to, but not anymore, because god forbid people sell stuff that 'aint Tecate. 

There's stuff being shaken up a bit, recently.

But the car industry is obviously monopolized.

And it's worse, it doesn't only extend to the car-driving consumer. But it's also affecting mechanics, importers, the entire car-service industry.

Here in Baja, junkyards couldn't even import salvage vehicles for the express purpose of parting out. It was impossible, or damn near. 

There were protest, and such.

But since it doesn't really affect anyone outside of the car industry, and definitely not the stealerships, do you think the government even recognized it as an issue?

So, I think it's definitely wrong to assume that there is no 'conspiracy' behind the automotive industry in Mexico.

It's a very serious issue. This doesn't represent true supply and demand, because the government doesn't allow legitimate competition.

Debt works weird in Mexico…
People rack up debt, not pay it.
Then get "sued" for an absurd amount of interest.
Then get a letter saying,
"We'll due you a solid, forgive 99% of your loan, you only gotta pay that 1%."
That 1% ends up being a little over the amount borrowed.

Wild.


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## Meritorious-MasoMenos (Apr 17, 2014)

Cristobal said:


> Instead of some conspiracy theory about car dealerships and the government out to screw the working man you might want to instead address the low wages and concentrated capital that lead to high interest rates which make credit incredibly expensive for the working class.


Besides all that, car manufacturers have to deal with the continual slide of the peso against the world reserve currencies, the dollar, euro and English pound.

What has the peso fallen to the dollar in the past year, 30%? Remember, a lot of the car parts and raw materials to build them are imported. The manufacturers would lose their shirts if they offered an interest rate of 2%. 

If any of you berating Mexican businesses for their interest rates want to lend me pesos at 2%, please let me know.


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## WintheWin (Jul 15, 2015)

Meritorious-MasoMenos said:


> Besides all that, car manufacturers have to deal with the continual slide of the peso against the world reserve currencies, the dollar, euro and English pound.
> 
> What has the peso fallen to the dollar in the past year, 30%? Remember, a lot of the car parts and raw materials to build them are imported. The manufacturers would lose their shirts if they offered an interest rate of 2%.
> 
> If any of you berating Mexican businesses for their interest rates want to lend me pesos at 2%, please let me know.


I think it's sad that the techs who build Kenworth 250,000 USD trucks get paid about 1,200 pesos a week.

That interest is PURE profit. 

I don't see why they can't offer reasonable interest rates to folks. 

You're assuming that Toyota suffers a loss every time it sells a vehicle 100% cash down, which is not the case. Yes, it doesn't PROFIT FROM THE INTEREST, but it still profits.


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## Cristobal (Nov 25, 2014)

WintheWin said:


> You seriously think there isn't a conspiracy between the government and automobile manufacturers in Mexico?
> I mean, passing of "verification vehicular" is obviously an earnest attempt to limit pollution, it's not the government's way of pressuring folks into purchasing new cars that'll pass Mexican equivalent of smog?
> 
> They have this same thing in Cali. Difference being, more folks can afford to have cars that'll pass Smog.
> ...


Thanks for cluing me in. Have long have you lived in Mexico?


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## Cristobal (Nov 25, 2014)

WintheWin said:


> I think it's sad that the techs who build Kenworth 250,000 USD trucks get paid about 1,200 pesos a week.
> 
> That interest is PURE profit.
> 
> ...


Toyota dealerships won't sell cars 100% cash down.


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## WintheWin (Jul 15, 2015)

Cristobal said:


> Thanks for cluing me in. Have long have you lived in Mexico?


Since I was 16. I've gone to the US for short spells, but usually never out of the country for more than a month or two.


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## Cristobal (Nov 25, 2014)

WintheWin said:


> Since I was 16. I've gone to the US for short spells, but usually never out of the country for more than a month or two.


That doesn't tell us much. How old are you? 18? 88?


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## WintheWin (Jul 15, 2015)

Cristobal said:


> That doesn't tell us much. How old are you? 18? 88?


Lol, I'm 24. A youngin' yet.


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## Cristobal (Nov 25, 2014)

WintheWin said:


> Lol, I'm 24. A youngin' yet.


 My youngest child is 27. My oldest turned 36 this year. There is another one right between those two. They were all born and raised here. All are university graduates. Iteso, Itesm and the UdeG.


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## ZaPatton (Aug 17, 2015)

So I am looking at some parcelas- lot of land too buy to build a home, does anyone know what the going rate is for concrete per foot?


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