How to buy a car and get a licence plate in PanamaIf you've decided to buy a used car, you've already made a smart decision. You can get a car that's almost as good as a brand-new one, without suffering the depreciation that wallops new car buyers as soon as they drive the car off the lot. Used cars — even those that are only one year old — are 20 to 30 percent cheaper than new cars. I have a friend that decided to buy a used car; the three most common places to buy a used car in Panama are private parties, used car Lots and New car dealerships. Of these sources, private parties usually have the most reasonable prices. It is also a more relaxed transaction to buy a used car from a private party rather than to face a salesman at a dealership. Still, there are advantages to buying a used car from a new car dealership. Many used cars, on new car lots, are trade-ins. Dealerships usually get these cars at rock-bottom prices. If you make a low offer — but one that gives them some profit — you just might get a great deal. But these are sometimes one time opportunities.
So she decided to visit various used car Lots, in order to evaluate which one offered the best deal. When she found the car she wanted she contacted an authorized mechanic to help her inspect the vehicle to evaluate its condition; it’s very important when testing a car to evaluate the following:
- Acceleration from a stop
- Mileage: Most new cars are sold with a three-year/36,000-mile warranty. Therefore, if you buy a car that is from one to three years old, with less than 36,000 miles on the odometer, it will still be under the factory warranty.
- Visibility (Check for blind spots)
- Engine noise passing acceleration (Does it downshift quickly and smoothly?); Most of the used car dealerships in Panama City offer small guarantees that will cover the motor and transmission for three to six months.
- Hill-climbing power
- Braking
- Cornering
- Suspension (How does it ride?)
- Rattles and squeaks
- Cargo space
After she was sure that the car was in good conditions she started the price negotiation. She didn’t have enough money to pay it cash so she previously applied for Financing through a bank which is the best route because it will usually help you save money and give you the most control over the transaction. She also had to take into consideration monthly payments and expense of repairs. When negotiating the price please take into consideration the following:
- The price of the car must be according to its condition; usually the cost of a used car is based on its condition, mileage, reliability, performance and popularity.
- Always let the dealer know you have the cash in hand (or financing arranged) to make a deal on the spot.
- Only enter into negotiations with a salesperson you feel comfortable with
- Make an opening offer that is low, but in the ballpark
- Walk out — this is your strongest negotiating tool
- Decide ahead of time how high you will go and leave when your limit's reached
- Be patient — plan to spend an hour or more negotiating
- Leave the dealership if you get tired or hungry
Once she had a deal she proceed to close the deal by making sure the legal documentation was up to date. She had to make sure that the car had its Insurance that covers damages to third parties required by the National Transit and Transportation Authority (in Panama rates vary from about $200-$500 per year), and that the title and registration were properly transferred to her name. Taking into consideration this aspect it is better to buy your car through a used car lot because usually they offer to make this transaction which many times becomes a burden to the customer specially for Foreigners, for an additional cost which may vary from $100.00 -$120.00. The dealer will take the transfer card to the Municipality Office that Originally Issued the car’s license plate, in order to make all the paper work. Used cars must have their License plate and sticker of the year. She didn’t even had to wait until transfer was made before taking her car Home, because the dealer will only give her a call when it was ready. If you decide to buy your private party you will always have the option to go with him to the Municipality to make the property transfer or carry the following documentation:
- Copy of original owner’s ID
- Transfer Card —which is provided by the municipality— properly signed
- Copy New owner’s ID
- Certificate of vehicle inspection of the year(inspeccion vehicular)
- Certificate of sole title of the vehicle (registro unico de propiedad vehicular)
- Paz y Salvo” from the “Municipality” of the owner (a paper which states you do not owe anything to the government)
- Payment of the National Permit of Circulation tax at the “Municipality” that issued the license plate.
Then she reviewed the contract thoroughly before signing it. Once all the paper work was completed it was finally time to relax and enjoy her new purchase: a good used car.
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