Buying a Used Car in Costa Rica: A Complete Guide for Expats and Investors
Buying a used car in Costa Rica can seem complicated for a French-speaking expat or investor. Between the administrative requirements, high import taxes, and the unique features of the local market, it’s essential to be well-prepared. This comprehensive guide walks you through every step to ensure a safe and successful purchase.
Introduction: Why Buy a Car in Costa Rica?
Costa Rica’s diverse landscapes and sometimes rough roads often require a suitable vehicle to explore the country freely. Many expats and investors choose to buy a car locally rather than import their own due to high import taxes, which can reach up to 80% of the vehicle’s value.
1. Key Steps to Buying a Used Car
a. Determine Your Needs
First, define the type of vehicle that fits your lifestyle:
SUV or 4×4: Ideal for rural or mountainous areas.
Sedan or compact car: Enough for urban use.
b. Searching for a Vehicle: Where to Look and Who to Trust?
You can find used cars through several channels:
Popular listing sites like Crautos.com and Encuentra24.com, which feature thousands of listings from private sellers and dealerships.
Facebook groups for expats (e.g., “Francophones in Costa Rica,” “Expats in Tamarindo”) where well-maintained vehicles are often offered.
Official dealerships or recognized brand garages (Toyota, Nissan, Hyundai, etc.) that typically sell inspected and guaranteed vehicles with verified histories.
💡 Recommendation: To reduce risk (tampered vehicles, false mileage, hidden mechanical issues…), it’s highly recommended to buy from a recognized dealership or official garage. Prices may be higher, but you gain peace of mind and transparency. Some even offer payment plans and warranties of up to 12 months.
Buying from individuals can be cheaper but also riskier, especially if you’re unfamiliar with the market or language.
c. Mechanical Inspection: A Must-Do Step
Before finalizing the purchase, have the vehicle inspected by an independent mechanic. Even if it looks fine, many issues may not be visible to an untrained eye.
Good news: In Costa Rica, many garages offer mobile inspection services. For about $50 to $100, a mechanic will go with you to inspect the car on-site and provide a full diagnostic (engine condition, brakes, steering, tires, possible collision history, etc.).
This service is very common, especially among expats or investors who may not speak Spanish fluently or know the local market well. It’s a valuable safeguard against bad surprises.
👉 Tip: Choose a mechanic recommended by another expat or a local real estate agent. Avoid inspections arranged by the seller, as they may be biased.
d. Administrative Checks
Make sure the vehicle is free of debts or legal issues by checking with the National Registry using the license plate number. A lawyer can help with this to ensure a secure transaction.
2. Legal and Tax Considerations
a. Required Documents
To buy a car in Costa Rica, you’ll need:
Your valid passport.
A purchase contract prepared by a lawyer.
Payment of the ownership transfer fee (traspaso), usually around 5% of the vehicle’s fiscal value.
b. Insurance and Technical Inspection
Marchamo: This is an annual tax that every vehicle owner must pay. It includes SOA (mandatory liability insurance), which only covers bodily injuries caused to third parties. It doesn’t cover material damage or your own car.
Recommendation: Take out additional voluntary insurance (seguro voluntario) with a local insurer like INS (Instituto Nacional de Seguros) or a private company. Coverage may include:
Material damage
Theft
Vandalism
Legal assistance
Roadside assistance
RITEVE / DEKRA: This is the annual vehicle inspection, mandatory for all cars. It checks mechanical condition, brakes, emissions, and other safety elements.
3. Understanding Vehicle Costs in Costa Rica
Buying a car in Costa Rica is often more expensive than in Europe or North America, even for used models. This is due to high import taxes, maintenance costs, and the high value of in-demand vehicles (like 4x4s).
a. Purchase Price
New vehicles can be 30–40% more expensive than in the U.S.
Example: A base model Toyota RAV4 or Hyundai Tucson can cost over $40,000 USD new.
For used vehicles, expect to pay:
$8,000–$15,000 for a compact SUV (5–10 years old)
$5,000–$10,000 for a reliable small car (Toyota Yaris, Hyundai Accent…)
Tough 4x4s like the Hilux or Prado can go for $20,000 or more, even with high mileage.
b. Annual Costs (Estimates)
| Expense | Approx. Annual Cost (USD) |
|---|---|
| Marchamo (annual tax) | $200 – $800 (based on value) |
| Additional insurance | $300 – $800 |
| RITEVE (inspection) | ~$30 |
| Maintenance and repairs | $300 – $1000 |
| Fuel | $1.10 – $1.20 per liter |
These figures can vary depending on usage, location, and vehicle type. Popular brands like Toyota, Hyundai, or Nissan offer a better balance of reliability and maintenance cost.
4. Comparison with Other Central American Countries
Compared to neighboring countries like Nicaragua or Panama, Costa Rica has higher car purchase costs due to import taxes. However, the market is more structured and provides better legal security for foreign buyers.
5. Practical Tips
Choose popular brands (Toyota, Nissan, Mitsubishi) for easier maintenance.
Avoid impulse buying — take your time comparing options.
Join expat groups on social media to get recommendations and real experiences.
Conclusion
Buying a used car in Costa Rica is entirely feasible as long as you do your homework and work with qualified professionals. Whether for personal or business use, having the right vehicle gives you the freedom to explore everything the country has to offer.
❓ FAQ – What You Need to Know Before Buying a Used Car in Costa Rica
Q: Can I buy a car in Costa Rica without being a resident?
A: Yes, foreigners can purchase a vehicle without residency. All you need is a valid passport. A lawyer will prepare the contract and handle the property transfer (traspaso).
Q: Is my driver’s license valid in Costa Rica?
A: Since September 2023, tourists can stay up to 180 days without a visa, and their license is valid for that entire period. There’s no longer a need to do a “border run” every 90 days as long as you don’t exceed the 180-day limit.
Q: Is Marchamo enough for insurance?
A: No. Marchamo only includes basic liability coverage (SOA), which covers bodily injuries to third parties. For full protection (damage, theft, vandalism…), you’ll need to purchase private insurance from a provider like INS.
Q: What are the actual costs of driving legally in Costa Rica?
A: In addition to the car’s purchase price, you’ll need to budget for:
Annual Marchamo: $200 – $800
Comprehensive insurance: $300 – $800 per year
Technical inspection (RITEVE): ~ $30 per year
Regular maintenance: varies, ~$300 to $1000 per year
Q: How do I check if a car is legally compliant?
A: Check the National Registry using the license plate number. You can verify debts, unpaid fines, or if there’s a lien on the vehicle. Your lawyer or seller can help with this step.