# Buying a Mexican plated car



## Mr.Chips (May 23, 2008)

Given the problems in the border towns,we are considering flying next year and purchasing a vehicle which would remain in Mexico.Can this be done on a FMT?Is it possible to register the vehicle in more than one name (in case someone would like to share ownership)?The vehicle purchased would most likely be several years old...is there a tax payable each year?Does the vehicle need to be replated each year?Do I need a mexican drivers license?What are the insurance requirements? Any pitfalls/problems with this plan.Also would like to know if anyone has struck a deal with a seller who would agree to buy the vehicle back after 4 or 5 months at a set price? Thanks.


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## RVGRINGO (May 16, 2007)

Although you could buy a car on a tourist permit, you must have an FM3 and a Mexican address in order to register a car. 
Note that the FMT will be discontinued on May 1st, 2010, and will be replaced by a new 180 day FMM electronic card with new, tighter requirements to apply for an FM3 earlier, if you intend to stay longer. FM3s will no longer be available outside of Mexico, from consulates.
We have a Mexican car registered in both our names and it seems to confuse the 'traficos'. I would not do it again.
Yes, the registration must be renewed each year and it is a two-step process at a specific time of the year: Pay & get the receipt, then return a month or two later to pick up the new 'tarjeta de circulation' and window sticker. That's how it is done in the state of Jalisco. Others may differ.
The tax is a declining tax for cars less than ten years old. It is paid at the time of registration renewal. When buying a car, be sure to get proof that it has been paid each year & go to the 'recaudadora' with the seller to be sure there are no pending tickets; they stay with the vehicle, not the person.
Your current license is OK.
Unless you like Mexican jails, keep yourself well insured.
I don't think your 'buy back' plan would fly in Mexico. Enforcing it would be virtually impossible.
You might consider using the excellent taxi & public transportation systems, including regional airlines and buses, and only renting a car when you really want one. That may actually be more economical for your purpose.


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## conklinwh (Dec 19, 2009)

I'm surprised about the FM3 requirement for registering a car. We have a number of friends that use FMTs, have property and have not had any problem buying and registering a car. We are in the state of Guanajuato but doubt that makes a difference.
If you do buy a car, I understand that a real saving in annual fees if a pickup truck, even if 4 door.


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## RVGRINGO (May 16, 2007)

The laws regarding vehicles are unique to each of the 31 Mexican states. My post stated the situation in Jalisco, where proof of residence address is required by showing an FM3/FM2 and utility bills, etc., much like many states in the USA.


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## conklinwh (Dec 19, 2009)

Must be different as they used FMT to prove legally in Mexico, escritura & utility bills to prove a Mexican residence.


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## Mr.Chips (May 23, 2008)

To add to the confusion...a friend just registered a vehicle in La Huerta without an FM3...he did it on his fmt along with passport/utility bill/ ....about 700 psos for the whole process.. should add that La Huerta is in Jalisco...


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## RVGRINGO (May 16, 2007)

Then, it appears that the real requirement is to prove an address and legal immigration document. However, only 'snowbirds' would be likely to own a home, have the utilities in their own name, and still be on an FMT; not a good idea if they ever have to sell the home, by the way.


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## conklinwh (Dec 19, 2009)

RVGRINGO, your last comment is intriguing to say the least. What is the issue with selling property while on FMT? Is this the new tax discussion which I thought was tied to appreciation/profit?


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## RVGRINGO (May 16, 2007)

There doesn't appear to be anything 'new', but things in Mexico often vary in their interpretation from one 'authority' to another. As such, none of us can remain absolutely sure of anything. As I understand it, one is only exempt from certain taxes on a profit from the sale of a home, less provable improvements, probably evidenced by those ever elusive 'facturas.' No one seems to know, for sure, if that means an FM3 or an FM2 (many favor the latter) and five years' residence in that property; certainly not on an FMT or the new FMM. That said, only the closing notario will 'know' and that 'knowledge' may vary from notario to notario. How's that for vague? That's just the way it is in Mexico.


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## Mr.Chips (May 23, 2008)

To add to the confusion,my friends who bought the car do not own their residence...they rent..the utility bill is not in their name...they are waiting for the final registration papers to arrive by mail..will keep you informed.


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## RVGRINGO (May 16, 2007)

In situations, such as you just described, there is another way; a letter from the municipio which states that you live there.
You prove several points about living in Mexico: Not only are things done differently five miles down the road, but once you learn how they are done in that location, they will change.
Remember, educational skills are very low, including interpreting written laws and procedures. As such, 'interpretation' can be all over the place. Yet, the official in front of you has the authority and you definitely don't want to mess with his 'macho'. That's when things go down hill; very slowly.
In some areas, renter's must show the landlord's ID and the contract, for example, to prove residency.


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