Advice on getting an FM 2 please

[Ajijic]

Valerie this is another good question and definitely see your point. Please let us know the final outcome. The tenencia over ten years is a huge amount of pesos. Like you noted it starts at 3% so on a 330,000 p car it would be 10,000 pesos.

I believe that drops every year on the value of the vehicle. But on that example the approximate numbers would be in subsequent years 90,000, 80,000, 70,000 pesos etc. Over ten years in this example 55000 pesos on top of the 16% tax already included in the car price.

Round numbers that is 100,000 pesos of tax on a car with the example I used. I understand the Mexican government needs income but at same time discourages getting some of the old polluting and unsafe cars off the road with such a high tax.

Good luck with your decision and as noted please keep us informed. John

[RVGRINGO]

There is always the option of purchasing a 5-10 year old car and, if necessary, having it brought up to 'like new' condition; thereby reducing or eliminating the tenencia.

[thevalerieleigh]

I have tremendous trepidation in buying a 5-10 yr. old used car in general but especially in Mexico. In the U.S., I can get one that's a few years old and with CarFacts and other sources can pretty well determine if the car has been repaired from an accident or had other major failures. Here, I fear that I could be buying a real can of worms especially considering the road conditions and some of the driving habits.

I realize I am in quite a pickle here....I had hoped not to have to buy a new car but I fear that's the only way to guarantee I am not going to end up with a huge mechanical problem. Aside from the high cost of a new car here or in the U.S., I don't want a new car here just to have people bang it up, scratch it, car-jack it, etc. Right now, although my Honda runs great, it doesn't look so perfect on the outside. After the first few years of living here and having all the scratches and dents (from shopping carts and oblivious drivers banging into the car in parking lots) removed, I gave up and figured it's the inside that really concerns me. My leather seats and interior are still really pristine.

So, back to step 1. I need to talk with Juan (who seems too busy right now to return my calls!) and then go from there. I will post on the board what he says are the pros and cons in case I have missed any.

As always, I appreciate the input I receive from the people on the webboard. Hope you all have a great day. Living in Paradise is really wonderful (most of the time, LOL!)

Valerie

[More Liana]

...I thought I read somewhere that the tenencia laws were changing for the better... Sorry, I don't have details - my memory now days is not getting better...

When now-president Felipe Calderón was running for office, one of his campaign promises was "I will do away with the tenencia on vehicles." Tenencia, which was instituted in 1968 to help pay for that year's Olympic Games (held in Mexico), is still a federal tax 42 years later.

After his election, President Calderón said, "Oh, and about the tenencia: I will do away with that federal law in 2012--but it will be a STATE law instead." Of course Calderón will be out of office in 2012, so will have no voice in changing a federal law. *sigh*

If he makes good on his 2012 'promise', imposition of tenencia will be at the discretion of Mexico's individual states.

The state of Jalisco had actually talked publicly about not imposing the tenencia in 2010, but apparently changed its mind.