Auto Expenses

Owning a car in Costa Rica can be an expensive undertaking. To avoid the expense of insurance, vehicle registration, maintenance, gasoline, and annual inspection, some transplants to Costa Rica opt for a combination of taxis and public transportation, which is inexpensive, efficient and reliable. Read more on Riding the Bus and getting around San Jose by Taxi.

Buying and Importing Vehicles

Having a car is certainly convenient, especially for running errands and taking daytrips to the country’s most beautiful destinations. If you decide that car ownership is a priority, you must first decide whether to import your own car, or purchase one in-country.

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.

From an economic standpoint, it is almost always best to purchase a vehicle in Costa Rica. In addition to the $1000+ freight cost to ship your foreign car, the Costa Rican government taxes all imported vehicles 45%-85%.  Generally, the latest model cars (previous four years) are taxed at 59%, and older cars between 71% and 85%, depending on the age. All car values are determined by the Costa Rican government, and are normally assigned a higher value than stated in the Blue Book. In addition, your foreign vehicle may not be common in Costa Rica, and parts therefore may be expensive and difficult to find. (Read More about Bringing Vehicles into Costa Rica.)

Purchasing a vehicle in Costa Rica is similar to the process back home, but you must be careful and take care with each step. To begin, cars retain more value in Costa Rica than in other countries, so a used car will generally cost a bit more than expected. New cars are subject to standard import duties, so they always cost more (roughly 30%) than most foreign equivalents. When purchasing a new or used car, it is often best to go through a well-known dealer (ask around), and always have a used vehicle inspected by a competent mechanic.

Note: Do not visit the dealer-recommended mechanic, but rather someone who has been recommended by a friend or other trustworthy individual.) If you choose to pursue a private sale, make sure that the mechanic inspects the vehicle thoroughly.

If you buy a new car and want to finance it, 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.

The most popular brands in Costa Rica 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.

Licensing, Inspection and Registration

License plates are purchased and issued only once per vehicle; if the car changes ownership, the new owner inherits its plates. There is a fee to transfer title for the vehicle’s registration.

There are two government-mandated, annual to semi-annual fiscal responsibilities for vehicle owners. The first is a maintenance and safety inspection, known as RTV, which reviews the brakes, lights, turn signals, windshield wipers and other functions, in addition to the vehicle’s emissions. Vehicles less than five years old are subject to inspection every two years; cars older than five years must be inspected annually. Inspections are only conducted at special facilities, and appointments (made by telephone or on the RTV website) are necessary. Inspection month depends on the last digit of the license plate. Average cost for vehicle inspection is $20-$30.

The second annual responsibility is payment of the marchamo. The marchamo is a combination of vehicle registration and liability insurance, and is renewed each year between November 1 and December 31. Without a current marchamo, a vehicle may be impounded. The marchamo will not be issued without proof of current inspection, and will be refused if any liens or tickets have been placed on the vehicle. Car owners may pay the marchamo at MOPT, or other designated locations, including many public and private banks. Cost depends on vehicle model, make and year – for example, the fee for a 5-year old, mid-range sedan may cost $200-$300 annually. (Enter your license plate number to check your marchamo: http://portal.ins-cr.com/General/Marchamo/.)

Automobile Insurance

Until the 2008 ratification of CAFTA (the Central American Free Trade Agreement), the Costa Rican insurance industry was entirely government-owned. In 2009, international insurance companies will begin to offer vehicle insurance within Costa Rica.

There are several tiers of Costa Rican car insurance, including liability, collision, comprehensive, and theft. If you have a lien on your vehicle, comprehensive insurance is obligatory. If you finance a vehicle through a dealer, the dealer will usually incorporate insurance fees into your monthly payments, and set up the policy for you.

Automobile insurance beyond liability is not mandatory and, due to its expense, few drivers carry anything beyond this most basic of coverage. However, if you cause an accident and do not carry insurance, you will be responsible for all damages. Alternatively, a liability policy (to cover only your vehicle) is available for less than $150 annually.

Maintenance and Gasoline

The good news about owning a car in Costa Rica is that repair and maintenance are inexpensive – usually about 15% of their U.S. alternatives. Shop around before committing, as prices do vary by shop and location. If possible, always get a personal recommendation regarding mechanics.

Gasoline, on the other hand, is very expensive in Costa Rica. As of late 2009, gasoline prices hovered around $3.55/gallon. All gas stations are full-service, and since the government sets gas prices, you will pay the same at every location. Upon request, most gas stations will check your oil and tire pressure, and wash your windshields, as well.