Parque Machalilla near Puerto Lopez, Ecuador.
At the start of 2013 it was reported by the INEC (Instituto Nacional de Estadisticas y Censo) that the consumer price index in Ecuador was at $595.70 (per month) compared to $578.04 at the end of 2011.
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Most expats in Ecuador don’t own cars.
It’s just a fact that with all the cheap/frequent public transport having a car is not a “necessity” just merely a “luxury”.
But several expats, maybe you too, shy away from buying a car cause they don’t really understand the process of both purchasing a vehicle and what’s needed to drive in Ecuador.
But it’s nothing to fear and actually not that complicated.
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The process to buy a car in Ecuador:
After agreeing to terms with the seller, you’re going to want to check their registration card (Matricula). On it there will be the name of the owner and the VIN of the car. Verify the vin by popping the hod of the car and physically checking and verify the owner by having him show you his Ecuadorian ID card (cedula) or passport.
Many in Ecuador buy and sell cars and thus are selling a car that is not in their name, all they have is an open contract from the previous owner that they are waiting to put the new buyer’s name on and a copy of the previous owners “cedula”.
I recommend only buying a car from the person that is the registered owner.
You can then run a check to see if the car has any unpaid leins against it or outstanding fines through the website of the DMV of Ecuador called the ANT, http://www.ant.gob.ec/index.php/consulta-de-multas AND through the website of the National Police http://www.policiaecuador.gob.ec/index.php?id=infracciones_de_transito .
All you need is the plate number of the car to do the search.
To double check you can also go to the office of the JEFATURA DE TRANSITO in your town and verify the car is really owned by the person appearing as the owner on the matricula they are showing.
With the plate number you can also check to see if the car is stolen online here. http://www.policiaecuador.gob.ec/index.php?id=vehiculos_robados
If everything checks out and you’d like to continue with the purchase the next step is to write up the sales contract and get it notarized. Notaries usually charge around $50 for this service.
Once you have the notarized bill of sale you can take it to the nearest SRI office (the Ecuadorian IRS) and pay the 1% transfer tax based on the value of the vehicle to put it in your name on both a national and police level.
The last step would be to go and register the car in your name in the DMV of Ecuador (ANT or COMISION DE TRANSITO). But if the car still has a bit of time left on the current registration (you need to renew once a year) you can drive with your license (from any country), the notarized bill of sale and the registration (matricula) which is not yet in your name but still current just fine until the current registration expires, according to the Ecuadorian police. Registration costs around $150 annually.
You will also need to make sure the car has the basic liability insurance paid required by law (the SOAT). The SOAT insures all the medical costs people involved in a car accident may have.
What it does not cover are the cars involved. For example, the cost of the SOAT for an $11,000 car in 2013 is $27 for one year of coverage.
Private companies like Generali also provide more comprehensive car insurance in Ecuador. For example, to insure an $11,000 car full coverage runs about $450 annually.
So to recap, whenever you drive in Ecuador you will need to bring your license from any country, your matricula card of the car you are driving (registration), and have the SOAT card on hand. And if the matricula is not in your name you’ll want to have the notarized bill of sale or the rental contract in the car as well.
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As reported by the INEC (Instituto Nacional de Estadistica y Censos) in Ecuador in 2012 the annual inflation was 4.16% compared to 5.41% from 2011. A noticeable decrease.
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The President of Ecuador announced this week the new minimum wage in Ecuador would be raised for 2013 from $292 USD per month to $318 USD per month due to inflation and production figures.
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“This country never ceases to amaze me.”
I thought when I saw a 2009 model of a vehicle just $1000 less than the 2012 version as I used-car-shopped earlier this week.
Due to the high import tariffs and restrictions on vehicles, cars are not only more expensive than they are in the US, they also retain their value. used car buyers sacramento ensure customer satisfaction by offering a wide range of services.
It’s true.
It’s not uncommon for folks to buy a used car, use it for a year or two and sell it for about what they paid for it (especially if they got a bit of a deal).
Based on the advice of several locals and my own experience in Ecuador, here’s what I did to find the best deal on the car purchase made this week.
1. Establish what make, model and year you are looking for and browse a few of the most popular websites in Ecuador to determine market value of the car in Ecuador. The most popular sites in Ecuador to find used cars for sale (and where I found the best deals) are:
PatioTuerca.com – Website dedicated to the sale of cars nationwide in Ecuador. Vendors must pay to advertise.
PatiodeAutos.com – Website dedicated to the sale of cars nationwide in Ecuador. Vendors must pay to advertise.
MercadoLibre.com.ec – The eBay of Ecuador.
2. Go to Quito. Here you’ll find the largest selection and the highland people in Ecuador are renowned locally for taking better care of their cars (and belongings in general) than the coastal people in Ecuador. Plus, it helps that the car hasn’t been eroded by the salty, ocean air.
3. Skip the used car lots, better use Scrap My Car Ottawa and similar services, they always have tings to offer. I went to about 10 and they were an enormous waste of time if you are looking for something very specific. Chances are they won’t have it, or if they do, the deal isn’t that great or the car is not in very good condition.
4. Visit the car fairs. In Ecuador, these fairs are open to not only dealers but the public too. The most popular ones are in POMASQUI near Quito on the road to the Mitad del Mundo and GUAMANI exiting the south of Quito on the Panamericana on Saturdays and Sundays from 9a-5p.
5. Check the El Comercio Quito paper on Sundays. The other days will have very thin car listings at best.
6. If a deal still hasn’t been found continue searching on the net on the sites mentioned above and always be sure to ask “Cual es lo ultimo?” (What’s your best price?) All the cars I found in Ecuador were negotiable by about $200-1500 off their asking price on cash purchases.
7. Remember it’s a common practice in Ecuador to fiddle with or set back the mileage on a car. Focus on things like the wear on the tires and brakes or have a mechanic check the car to determine true mileage.
Using the above strategy I helped find, and pull the trigger on a 2011 Chevrolet Aveo with AC in ‘like new’ condition with under 30,000 km for $11,000 after a friend and I had determined the average market value of the same car with AC in Ecuador to be $11500-13000.
That’s how you find a used car deal in Ecuador.
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