# Vehicle Tenencia



## Kaye (Nov 16, 2008)

I'm hoping to relocate to Mexico driving my 1990 Honda Accord. It is in good shape, has very low mileage and passes the emissions tests easily here in Vancouver, BC. I know the car is too old to import permanently. BUT - what is this 'tenencia' that apparently costs so much there in Mexico? Also, does Mexico have any difference in car insurance rates for seniors and for pleasure use only? I don't insure the Honda itself, only the liability for others if I'm at fault and that costs me about $65 monthly. Thanks!


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## RVGRINGO (May 16, 2007)

You won't have to worry about the 'Tenencia' for two reasons: This 'luxury tax' does not apply to temporarily imported vehicles owned by foreigners with FMT, FM3 or FM2 status. It only applies to Mexican plated cars for the first ten years of a car's life; yours would be too old.
Since you cannot easily import it permanently, it cannot be 'nationalized' and can't get license plates in any Mexican state. So, keep your registration from home and remember that you are obliged to take the car out of Mexico whenever your immigration status is no longer maintained.


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## Kaye (Nov 16, 2008)

Thanks RV ****** for your reply - but you've raised another real question! I phoned my (gov't) auto insurance agent here a few weeks ago to enquire about procedures once I reach the US-Mexico border. I was told I'd buy Mexican insurance at the border and would need to relinquish my BC license plates and mail them back. Only when they're received will my BC coverage be cancelled. 
I obviously don't want to pay BOTH BC and Mexico for car insurance - so not being able to get a Mexican license plate because of the age of my car seems like a 'catch 22'. Am I missing or misinterpreting something?


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## sparks (Jun 17, 2007)

What kind of insurance is that. To cancel my insurance in the US I just stop paying and it's up to the State (not an insurance company) to ask for plates. My insurance company even allows me to put my car in storage as I cross the border with an 800# call.

Does Canada have socialized auto insurance as well ??? If not I would get another company or just drop them. I let my insurance elapse after the first year and don't plan on driving back


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## Rodrigo84 (Mar 5, 2008)

My cousin had to pay Mexican insurance and insurance back in his home state, since he needed to have a foreign plate on his vehicle. As I recall, his company did something with the Mexican taxes where it was treated as business expense so that he didn't have to wind up paying double insurance. As I understand it, he could have done it on the U.S. tax side as a cost of doing business (akin to paying professional license fees, uniform costs, etc.), but chose to do it the other way. *There's no magic wand that can really be waved on this*, but if he had lapsed on his stateside insurance he would have had a big issue with his driver's license back in his home state. He didn't want that, but you need to have a plate on the back of your vehicle while you drive around in Mexico.

Off the official record, I know some foreigners who have 'bought' a used plate on the net and stuck that on the back of their vehicle while they are down in Mexico to avoid paying stateside insurance. When they finally leave Mexico, they get a temporary tag at the border, like in Texas, and then drive home on that, and then re-register their vehicle.

The Mexican insurance company, (even the one my cousin used), only asked for the copy to title to his vehicle (not the registration documents or anything else).

FYI, on your temporary importation permit, they don't put down your license plates.

I have known some people who have 'legalized' Japanese vehicles such as yours (not the same year). Even if you got it legalized, you'd still have to pay tenencia for at least 10 years (since you never paid it to begin with). It's much cheaper just to keep the foreign plate on it.

Also should note, that if you are planning on moving to Mexico City, you would be under heavy driving restrictions given the year of your vehicle and the fact you have foreign plates.


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## Kaye (Nov 16, 2008)

This all seems very complicated! I guess nobody from BC (each province would have it's own auto insurance set-up, Sparks) is in Mexico with a car older than 10 years, because one DOES have to relinquish BC license plates. The only exception I know of is when the vehicle is put under a 'storage policy' - which is what I did with my former motorhome during the winter months. I'll look into this, again. Thanks, everyone for your info'. I'm glad to have learned about this before arriving at the Mexican border!
Kaye


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## maesonna (Jun 10, 2008)

Not that you need to bother about it any more, but just for information, “tenencia” is like the annual ownership validation that we paid when we used to live in Ontario. Maybe you don't have it in BC?


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## Kaye (Nov 16, 2008)

Maesonna, I lived in Toronto throughout the 80's and don't recall that ownership fee. I've been back west twenty-one years. But actually, one pays for the license plates here as a part of your insurance coverage - I think that's correct - which amounts to the same thing!


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## playagrandma (Apr 24, 2009)

*vehicle*



Kaye said:


> Maesonna, I lived in Toronto throughout the 80's and don't recall that ownership fee. I've been back west twenty-one years. But actually, one pays for the license plates here as a part of your insurance coverage - I think that's correct - which amounts to the same thing!


not sure if this info will help or not. We live in Playa del Carmen and brought a 95 Chevy van down six years ago. We moved from South Carolina and were told we needed to hand in our tag-south carolina only requires one. We explained the situation and were given the okay. We called our agent and told him we needed to cancel the insurance on the day we would be entering mexico. Before we left we purchased mexico auto insurance from lewis and lewis and had the paid contract with his when we entered Mexico. We renew yearly and have the basic which cost us about $200 a year. We have an fm3 and the permit on the van renews when we renew the fm3.


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## Kaye (Nov 16, 2008)

Playagrandma, that info' is helpful. I plan on getting an FM3 (rentista) and will see about buying Mexican insurance ahead of time - didn't know you could do that. Also will go to the Mexican Consulate here and BCAA in person and see what they both figure, armed with info' such as yours. Hopefully there's a way around this. I'm not ready to give up this car quite yet - especially having invested in keeping it in good running condition! Are there emission test requirements in all parts of Mexico? In BC we only have that in the Greater Vancouver area!


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## playagrandma (Apr 24, 2009)

*vehicles*



Kaye said:


> Playagrandma, that info' is helpful. I plan on getting an FM3 (rentista) and will see about buying Mexican insurance ahead of time - didn't know you could do that. Also will go to the Mexican Consulate here and BCAA in person and see what they both figure, armed with info' such as yours. Hopefully there's a way around this. I'm not ready to give up this car quite yet - especially having invested in keeping it in good running condition! Are there emission test requirements in all parts of Mexico? In BC we only have that in the Greater Vancouver area!


I dont think there are any emission tests required in Mexico-Mexico city maybe. If you are going to obtain your fm3 in Canada-remember you have 30 days once you enter the country to register it. We were not told this and paid a fine when we went to renew. Lewis and Lewis and Sanborn are the insurance companies that sell Mexican insurance for your vehicle. Both are located in California-both can be bought online. We bought ours ahead of time so that the policy was in the mail to us before we leave. We renew it every year online. You can also purchase the insurance at the border.

Just curious what would happen if you just stopped paying for your present insurance? Are you leaving the vehicle in mexico? If so, then I wouldnt worry about it.


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## Rodrigo84 (Mar 5, 2008)

playagrandma said:


> I dont think there are any emission tests required in Mexico-Mexico city maybe. If you are going to obtain your fm3 in Canada-remember you have 30 days once you enter the country to register it. We were not told this and paid a fine when we went to renew. Lewis and Lewis and Sanborn are the insurance companies that sell Mexican insurance for your vehicle. Both are located in California-both can be bought online. We bought ours ahead of time so that the policy was in the mail to us before we leave. We renew it every year online. You can also purchase the insurance at the border.
> 
> Just curious what would happen if you just stopped paying for your present insurance? Are you leaving the vehicle in mexico? If so, then I wouldnt worry about it.


Emissions tests are never required for foreign plated vehicles. 

However, in the Mexico City area they are subject to restrictions based on days and hours upon when they must circulate. 

For Mexican-plated vehicles only, there are areas outside of Mexico City that do require emissions testing, particularly states that surround the Mexico City area.


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## Kaye (Nov 16, 2008)

I think ICBC (Insurance Corporation of BC) would just keep taking the monthly amount out of my bank account since I wouldn't have legally terminated 'the contract'. However, that might work for me. I'm thinking of (legal) angles. I'm pretty sure there is emissions testing in Mexico City, but maybe not elsewhere - ??


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## playagrandma (Apr 24, 2009)

*vehicles*



Kaye said:


> I think ICBC (Insurance Corporation of BC) would just keep taking the monthly amount out of my bank account since I wouldn't have legally terminated 'the contract'. However, that might work for me. I'm thinking of (legal) angles. I'm pretty sure there is emissions testing in Mexico City, but maybe not elsewhere - ??


so cant you just terminate that monthly payment from your account? There is no emission testing in Quintana Roo, the state where Playa del Carmen is located. I really have no clue elsewhere-like the previous posting-could be required in Mexico City and the state Mexico City is located. What part of Mexico will you be relocating.

As I state before, if you plan to leave the vehicle in Mexico-you shouldnt have to worry about no Canadian insurance on it.


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## f3drivr (Nov 18, 2008)

Hi Kaye,

Will your insurance be due for renewal prior to your leaving for Mexico? When you renew, cancel your monthly payments and prepay for a policy that will be valid long enough for you to get to Mexico and then just let it expire. I believe the minimum is 3 months, they will send you a renewal reminder in the mail but will not request that the plates be returend. I live in BC too and every year I buy 5 months of insurance for my Motorcycle, I pay the 5 months in advance, let it expire and get new stickers for the same plates the following year, they have never asked for the plates back.

Eventually you will probably want to drive the car back, if you live in GVA you will need aircare before they will let you renew and if the vehicle has not been insured for several years they might even want a mechanical inspection or at least to inspect the windshield. I wonder if it would be possible to buy a temporary permit when you enter the US to drive the vehicle back to Canada?


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## Kaye (Nov 16, 2008)

Thanks to all of you who have replied to my questions - you've given me some new possibilities to consider and enquire about. I hope to relocate to Morelia - don't know about emissions testing in Michoacan but expect my Honda would pass OK. I have to renew the vehicle's 'permission' every year, apparently, when I renew the FM3. I'm still not sure if both of those things can be done from within the country - or if you have to go out, say to the US, and re-enter ?? Just hope when I get to the Mexican border, perhaps in four months, they'll agree with what I've been told up here! Cheers!


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## playagrandma (Apr 24, 2009)

*vehicle*



Kaye said:


> Thanks to all of you who have replied to my questions - you've given me some new possibilities to consider and enquire about. I hope to relocate to Morelia - don't know about emissions testing in Michoacan but expect my Honda would pass OK. I have to renew the vehicle's 'permission' every year, apparently, when I renew the FM3. I'm still not sure if both of those things can be done from within the country - or if you have to go out, say to the US, and re-enter ?? Just hope when I get to the Mexican border, perhaps in four months, they'll agree with what I've been told up here! Cheers!


Kaye you will renew your fm3 every year in Morelia. Once you do that your auto permit automatically renew-nothing needs to be done to the permit on your car. There is a slight problem with this though and that is many people will tell you that you will need to get the permit renewed and of course the mexican agency handling that will probably take your money. Good Luck with the canadian insurance cancellation


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## RVGRINGO (May 16, 2007)

playagrandma said:


> I dont think there are any emission tests required in Mexico-Mexico city maybe. If you are going to obtain your fm3 in Canada-remember you have 30 days once you enter the country to register it. We were not told this and paid a fine when we went to renew. Lewis and Lewis and Sanborn are the insurance companies that sell Mexican insurance for your vehicle. Both are located in California-both can be bought online. We bought ours ahead of time so that the policy was in the mail to us before we leave. We renew it every year online. You can also purchase the insurance at the border.
> 
> Just curious what would happen if you just stopped paying for your present insurance? Are you leaving the vehicle in mexico? If so, then I wouldnt worry about it.


There are annual emissions tests in many of Mexico's states, especially Mexico City, where it may be more often and very stringent, including alternate driving days, based upon your license plate number. It can get very complicated there and is enforced, as I understand it, even for foreign vehicles, especially old ones. In Jalisco, I think foreign vehicles are exempt unless they are blowing dirty exhaust.

Some Mexican insurance policies for tourist vehicles (FMT/3/2 holders) require that your home state insurance be continued; yet, the 'traficos' don't seem to concern themselves with the expiration date of the actual vehicle registration.

Some states in Mexico can take your license until you pay for a traffic violation while others, like Jalisco, cannot. As elsewhere, everything varies by state.

By the way, paying a bribe is a felony in Mexico. Remember that before you offer one.


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## RVGRINGO (May 16, 2007)

Kaye said:


> ................ I have to renew the vehicle's 'permission' every year, apparently, when I renew the FM3. I'm still not sure if both of those things can be done from within the country - or if you have to go out, say to the US, and re-enter ?? ............!


Here's the good news:
You can do it all at the border, or at your nearest Mexican Consulate. Or, you can even get your car's 'Importada Temporal' online, I hear. Insurance can be had online or at the border; even from a friendly agent at your destination; if you know one. They'll e-mail the policy and most will let you pay when you arrive; they do that in our area.
No, you don't need to renew your car's 'importada' as long as you maintain continuous immigration status of FM3 or FM2, in spite of the expiration date on the 'importada'. So, you don't have to worry about driving out of the country for that purpose.
However, if you do drive out for any reason, be sure to stop at Aduana/Bancercito and get the sticker removed by them and keep the receipt......no matter what anyone tells you; even a customs agent, etc. It is the law and if your car were stolen, burned, totaled north of the border, you will have serious and expensive problems....guaranteed! Re-import it when you return. It is worth the small price; don't take a chance. Mexico is dead serious about this.


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## playagrandma (Apr 24, 2009)

*vehicles*



RVGRINGO said:


> There are annual emissions tests in many of Mexico's states, especially Mexico City, where it may be more often and very stringent, including alternate driving days, based upon your license plate number. It can get very complicated there and is enforced, as I understand it, even for foreign vehicles, especially old ones. In Jalisco, I think foreign vehicles are exempt unless they are blowing dirty exhaust.
> 
> Some Mexican insurance policies for tourist vehicles (FMT/3/2 holders) require that your home state insurance be continued; yet, the 'traficos' don't seem to concern themselves with the expiration date of the actual vehicle registration.
> 
> ...



Lewis and Lewis does not require your home state insurance to be continued. Not sure why they would since American and Canadian insurance is not valid in Mexico. The vehicle registration is not a factor-only the fm3 renewal. In Playa del Carmen the license plate is only taken when you are illegally parked. Otherwise if you are stopped they may take your license. By the way you are required to have a current drivers license on you at all times. And the police will look to see if its expired.

And although paying a bribe is a felony-its still the way it seems to be done at least here. This is what we usually do if we are stopped and for reason. We either demand a ticket which usually dont happen or if we know the officer is in the wrong-we start to write down his name and his badge number. For some reason they are not comfortable with that and tells us to move on.


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## RVGRINGO (May 16, 2007)

That's good news about some insurance policies and why it is wise to shop and read the 'fine print'. It can also vary by state. Retaining license plates is unheard of in Jalisco and holding a driver's license for payment is illegal; although some will try. We've been stopped but have never had a ticket, even though in the wrong. Yes, we also carry forms to 'report questionable actions' and each state ministry of tourism probably has similar forms. We refuse to pay bribes and always stand our ground; the officers seem to prey upon the 'weak and willing'. Minor traffic violations are very cheap if paid within a few days at the 'recaudadora' office. Playagrandma's last paragraph give excellent advice. Also, always insist on seeing the officer's ID. If he refuses, leave in a hurry as he may not be genuine. Try not to drive at night, but if you must, and if you see flashing lights, don't pull over until you are in a safe, populated place. There are 'blue light bandits' who will clean you out. Keep doors locked and windows up at night.


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## playagrandma (Apr 24, 2009)

*vehicles*



RVGRINGO said:


> That's good news about some insurance policies and why it is wise to shop and read the 'fine print'. It can also vary by state. Retaining license plates is unheard of in Jalisco and holding a driver's license for payment is illegal; although some will try. We've been stopped but have never had a ticket, even though in the wrong. Yes, we also carry forms to 'report questionable actions' and each state ministry of tourism probably has similar forms. We refuse to pay bribes and always stand our ground; the officers seem to prey upon the 'weak and willing'. Minor traffic violations are very cheap if paid within a few days at the 'recaudadora' office. Playagrandma's last paragraph give excellent advice. Also, always insist on seeing the officer's ID. If he refuses, leave in a hurry as he may not be genuine. Try not to drive at night, but if you must, and if you see flashing lights, don't pull over until you are in a safe, populated place. There are 'blue light bandits' who will clean you out. Keep doors locked and windows up at night.


more good advice. Its very wise to check what your area will require. And RV ****** is correct-minor violations are very cheap if paid withing a certain amount of time. I think here its within 48 hours but will go up if not paid within that time frame. A parking ticket is 150 pesos.


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## Rodrigo84 (Mar 5, 2008)

Kaye said:


> Thanks to all of you who have replied to my questions - you've given me some new possibilities to consider and enquire about. I hope to relocate to Morelia - don't know about emissions testing in Michoacan but expect my Honda would pass OK. I have to renew the vehicle's 'permission' every year, apparently, when I renew the FM3. I'm still not sure if both of those things can be done from within the country - or if you have to go out, say to the US, and re-enter ?? Just hope when I get to the Mexican border, perhaps in four months, they'll agree with what I've been told up here! Cheers!


There will be an obligatory (right now it is voluntary) emissions testing program in Michoacan in 2010, but it only applies to locally-plated vehicles, not foreign plated vehicles. Nowhere in Mexico are foreign-plated vehicles required to test. Otherwise, you can imagine the number of tourists that would get caught off guard.

The rules regarding driving a foreign plated vehicle in the valley of Mexico (a.k.a. Mexico City metro area), are stated here, Hoy No Circula - Wikipedia, the free encyclopedia but even there, there is no requirement that a foreign plated vehicle must test, only that you need to follow certain time/day restrictions while driving there.


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## Kaye (Nov 16, 2008)

You people are a wealth of valuable information! Many thanks. Now, my 'main' concern, though obviously not the only one in regard to driving in Mexico, is being able to keep my BC license PLATES. I have read on these forums that expat NOB plates are often stolen, being desireable for some reason. I'd be in a real 'pickle' if that happened and I couldn't get others from BC, not paying for insurance there any longer. I'm going to be out-of-town for a couple of days (so non-responsive) and then will start finding out what the local BCAA Autoplan agents have to say, plus the Mexican Consulate. I'll report back on this thread. 'Bye for now.


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## Rodrigo84 (Mar 5, 2008)

Kaye said:


> You people are a wealth of valuable information! Many thanks. Now, my 'main' concern, though obviously not the only one in regard to driving in Mexico, is being able to keep my BC license PLATES. I have read on these forums that expat NOB plates are often stolen, being desireable for some reason. I'd be in a real 'pickle' if that happened and I couldn't get others from BC, not paying for insurance there any longer. I'm going to be out-of-town for a couple of days (so non-responsive) and then will start finding out what the local BCAA Autoplan agents have to say, plus the Mexican Consulate. I'll report back on this thread. 'Bye for now.


Some of my cousin's friends removed their front plate when they moved to Mexico and installed a kind of bolt on the rear of their plates (they had a rounded top to them) so you could only remove the bolts by getting inside the vehicle, i.e., you couldn't take a screwdriver to get them off on the outside).


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## RVGRINGO (May 16, 2007)

If you cannot maintain your BC plates or if it becomes too expensive to do so, you might want to consider selling your car and buying a car in Mexico; assuming your are going to live there. It might be the easiest option. If you buy a good, older car in Mexico, you minimize or eliminate the tenencia. There are always good buy's available. In fact, I have a friend who is moving to the USA and has a 2004 Nissan Platina 4dr automatic, which will be for sale next month in Chapala with Jalisco plates. That's a very popular car in Mexico.


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## Rodrigo84 (Mar 5, 2008)

This should help in terms of looking at prices of Mexican vehicles,

Autos Nuevos y Seminuevos | Marcas | Precios - Yahoo! México Autos

The Platina is a very decent vehicle.


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