Auto Expenses

Buying / Importing Vehicles: 

Having a car for daily activities is not absolutely mandatory if you live near a city.  But, for traveling and some errands, it is really nice to have a car.
   
Many people want to bring their automobile down with them from the U.S.  While it is technically possible to ship or drive your car down to Costa Rica (if you own your vehicle outright- no lien), it is definitely not cost-effective. 

By law, if you want to keep a vehicle in Costa Rica for more than 90 days, you have to register it here, which means you'll have to pay import taxes.  Import taxes are exorbitant, and are in addition to the $1000 or more it will cost to ship it here.

Import taxes on cars, SUVs and pickups of the latest four model years are 59%, while rates for older cars are 71% and 85%, depending on age.  These rates are applied not only to the Blue Book value of the car (regardless of the purchase price), but also to the shipping and insurance costs. Ahhhh!

For this reason, it is best to buy a car from within Costa Rica.  New cars, in general, are more expensive across the board here (about 30%) than in the U.S. because of import taxes and there is no way around this.

Also, if you buy a new car you will probably want to finance it, which means you’ll either have to provide proof of income or good credit from within Costa Rica’s financial system.  This can be a little challenging if you are new here and have not yet established a credit history or if you don’t have a residency card or other proof of financial stability. 

You will end up paying higher interest rates if you can find a dealer willing to finance a vehicle for you.  It might be possible to find a resident or citizen to co-sign for you to help lower the interest rate.  Or, it may be best to buy a used car and pay for it outright.  You will still find higher prices on older model cars like Suzuki 4x4s, Honda CRVs and Toyota RAV4s than in the U.S.  Just be prepared to buy a car a few years older for the same money you would pay for a more recent model in the U.S. 

The most popular brands here are Toyota, Nissan and Hyundai along with Suzuki, Mitsubishi and Honda.  Buying a popular brand assures you of parts availability and the ability to find a reliable mechanic who knows how to work on your make of vehicle.

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Licensing and Registrations: 

License plates are paid for and issued one time per vehicle, even if the car changes owners, the plates stay the same and go with the car.  You only have to pay a fee to change the name of the registration.

Annually, there are two government-mandated fiscal responsibilities for your car.  First, your automobile will need pass a routine safety inspection, the RTV. This is a customary safety test, making sure all the basics are in working order including brakes, suspension, lights and emissions.  There is a ¢10,000 (approx. $20) fee for this inspection and the last digit of the license plate signifies in which month the inspection should be carried out. Cars less than five years old only need to have the safety inspection done every two years; cars older than five years need the inspection annually. You can visit the official RTV website for more information and to make your appointment online.

Second, you need to pay your annual vehicle registration, known as Marchamo. Marchamo is a mandatory type of car tax/liability insurance that you pay regardless of whether or not you have other car insurance.  When you pay this annual car tax, due between November 1^st and December 31^st, you must provide proof that the safety inspection (RTV) has been completed.  You will receive a sticker for your windshield that allows you to drive your car legally. 

The fee is based on the year, make and model of your vehicle. You can go to the official INS Web Page and enter your license plate number to find out how much the Marchamo will be for your vehicle. There are banners posted outside of banks and other approved locations advertising that you can pay your Marchamo at that location. Plus the signs serve as a great reminder.   

Automobile Insurance: 

The insurance industry in Costa Rica is also a government-owned enterprise. This means that there is no need to shop for competitive rates, just go to any insurance agent and they will issue you with your choice of coverage.  There are varying levels of coverage just like in the U.S., but only one insurance company actually issues the policies.  As in the U.S., if you have a lien on your vehicle, you are required to have comprehensive insurance. If you buy your car from a dealer, they will incorporate the insurance fees into your monthly payments and set up the policy for you.

It is legal to drive without supplemental insurance (additional to the required Marchamo) in Costa Rica. If you choose to drive uninsured, and you have accident for which you are found at fault (a court will determine this), you will be responsible for the damage to all the vehicles involved.  You’ll get stuck paying out of pocket if you are not insured.   

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Gasoline:

Gasoline is expensive any way you look at it. There is excellent public transportation in Costa Rica that is available for local commutes and for just about any destination within the country.  Bus fares range from .25 cents for a local trip in the city to no more than $10 to any point within Costa Rica.  See Getting Around in Costa Rica

Read More about Bringing Vehicles into Costa Rica

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