Costa Rica Cars - New or Used?

Brand new Costa Rica cars purchased at dealers here have about 20% worth of duties applied to the price. These rates are applied not only to the Black Book value of the car (regardless of the purchase price), but also to the shipping and insurance costs.

If you would like to find out how much a particular vehicle will be charged, have a look at the Ministry of Finance Costa Rica - Customs Department website (Spanish only).
Should You Buy From an Individual or a Used Car Dealer?

The used car dealer offers several advantages. The principle one being that they are legally bound to offer a 30 day guarantee on the transmission and motor. While a good mechanic will more than likely be able to steer you away from a real lemon, this guarantee is nice to have.

Another advantage is that they can offer you financing on the cars they sell and they'll take your car as a trade in, saving you the hassle of selling it.

Another big advantage is that most dealers are direct importers. It's no secret that the roads in Costa Rica are hazardous to the health of your car. If you purchase a car that is just coming into the country, you are assured of getting a car that has suffered much less abuse when compared to any car that has circulated in Costa Rica for a few years.

This obviously benefits the mechanical condition of the car a great deal. Also, many cars now are coming from Korea, which is small country with great roads. That means low mileage and generally good overall condition.

There are two scenarios where buying from an individual could be better. One case would be buying a car from someone who you know is very meticulous about the care and maintenance of their vehicles. Another case may be from someone who is leaving the country and who is anxious to sell the car at any price before they go.

If you find a car that is well below market value advertised, be very careful to ascertain why the price is so low, because normally there is a reason: "if it's too good to be true..."

What car to buy? - What Makes and models are the best for Costa Rica?

The three most popular brands in Costa Rica are Toyota, Nissan and Hyundai. You can't go wrong by sticking with these brands, for several reasons:

1) Parts are readily available for Toyota, Nissan and Hyundai in almost any area of the country and other brands such as Ford, Chevrolet, Saturn, Jeep only have parts available from the dealer or by special order. With some cars you have to be careful about what country version you have. For example, you buy a Ford Escort, but later you find out that it is the European version and nobody here has parts and you can't get them from the US either!

2) Parts are generally less expensive for Toyota, Nissan and Hyundai than other brands. Honda, Mitsubishi, Mercedes, BMW, Land Rover have good quality parts that are available however they are much more expensive here. Often because they are higher quality parts, but often because of slack demand.

3) Toyota, Nissan and Hyundais hold their resale value very well. Other brands such as Kia and Daihatsu have very low values on the secondary market.

4) Mechanics are familiar with Toyota, Nissan and Hyundais and have the necessary equipment for diagnosis and repair them. Since cars are more computerized now, the mechanic sometimes needs special equipment to diagnose the problem, and special tools to repair it. With less popular brands, like Volkswagen this can present problems, especially if you have trouble on a trip.

Suzuki, Mitsubishi, Honda are also good brands that are popular and solid choices. You have much more freedom if you plan to buy a new car from a dealer and drive it into the ground, but it still won't hurt to keep the above factors in mind. For example, Puegot has entered the market here in a big way and will probably be 1st tier status within the next year or two.

Economy vs. Power; Gasoline vs. Diesel

You must consider that as of January 2005, super unleaded gasoline was at $3.00 a gallon in Costa Rica. That means it is not advisable to buy a car with a V6 or V8 engine if you can possibly avoid it. For a gasoline engine, most automobiles here are between 1,500 and 2,000 cc. These motors have enough power to get up and down the mountains, but they won't bankrupt you every time you go to the gas station.

If you are driving in rural areas often, or want a car that will withstand the potholes much better, then you should consider a four wheel drive SUV or pickup. In this case, a diesel engine will be advisable. Diesel fuel costs about 25% less than gasoline. The new minivans and SUVs with CRDI or turbo diesel intercooler engines that are 2,800 to 3,000 cc displacement are excellent choices. You really won't see a difference in acceleration or power and the diesel engine is more efficient than gasoline.

Russ Martin is an Internet marketing consultant living and "working" in beautiful Coronado in the fresh mountain air east of San Jose. He has lived in Costa Rica since 1994, when he married a lovely Tica, and highly recommends this lifestyle and country to anyone with the right attitude...