Latin America Collection

New and used automobiles are expensive in Nicaragua, due to a
15% import tax and a 15% sales tax.
Because of the hefty prices, Nicaraguans hold on to their cars or
trucks for a longtime, before trying to sell them at a stiff price
when the vehicle becomes a teenager.


In 2005, a '91 Honda Civic is listed in the classifieds for close to
$2,000. By comparison, a used 2003 Toyota 4-Runner will go
for around $35,000; a sportier 2001 Mercedes Benz will go for
$32,000; and an older Ford F150 ('94) will ask $5,500.
Asian vehicles ­ especially Korean-built cars and trucks ­ retail
for less than American-made vehicles, and are much more
common here.
Although it may seem obvious, you are better off considering a
truck or 4x4 vehicle with a higher clearance if traveling outside
of Managua. Most of Nicaragua's roads are pothole ridden and
in poor condition. In many areas, the roads are made of dirt and
rock, resembling dry riverbeds. In these areas, four-wheel drive is
a must, especially during the rainy season, when roads flood
easily during deluges.
Pick up a copy of the daily newspaper La Prensa for the yellow-
page classified section, with a full daily listing of used vehicle
sales.
Insurance is available here, but protocol for accidents is different,
especially if someone is injured. If there is an accident with
injuries, all involved parties are thrown in jail until the judge can
sort out who is responsible.
You should also not buy or bring a car here if you don't have a
safe place to put it at night. People do not leave cars on the street
at night. If you do, you will find out why no one else does.
If you become a resident here, or invest in a tourism business
that qualifies for investor incentives under the Law 306, you will
qualify for a duty-free import of a vehicle with a sticker value of
$10,000.


If you opt to ship your vehicle to Nicaragua by freighter ship,
note that it will usually enter through Port Limón in Costa Rica,
or Port Cortez, in Honduras. IN some cases, it will enter
Nicaragua through Rama.
Documents Required:
1) Passport
2) Residence Visa
3) Proof of employment
4) Insurance documents
5) Original inventory (translated into Spanish) of value
declared for customs (include brand name of vehicle, serial
number, model and price)
6) Purchase invoice, legalized by Nicaraguan consulate in
country of origin
7) Letter authorizing clearance of shipment
The quickest way to import a vehicle is to ship to Costa Rica and
have the container clear customs in San José, where it will take
several days to several weeks, and cost about $100 in customs
fees.
For more information on shipping companies, visit website:
http://nicaragua.shipping-international.com/customs/
If you speak Spanish, Ronald Lacayo [tel. (505) 233-1444 or
263-2409] in Managua offers customs services of clearing your
car into Nicaragua, for a service charge of $150 (plus the 15%
import tax on the value of your vehicle). Other law firms can
offer similar services.
If you have all of your paperwork in order, your vehicle should
not take more than a month (at the most) to reach Nicaragua,
depending on your port of embarkation. If your car is sent from


Miami it may take less time to reach Nicaragua. From the West
coast or New York, you can expect to pay more and wait longer.
You will have to make sure your shipping company sends the
following documents: title or pink slip (título de propiedad),
registration, copy of passport, original bill of lading
(conocimiento de embarque) and the name of the shipping
company. Also make sure your car has Canadian or U.S. plates or
the whole process may be delayed.
Once your vehicle is in the country:
Tourists can drive in Nicaragua on their home-country's license
for a period of 30 days.
Like tourists, your vehicle will be granted a three-month visa to
remain in the country, so it is important to begin early on the
process of legalizing your vehicle here, although it is possible to
extend your vehicle's temporary visa, if need be.
To nationalize your vehicle here, you must have all the original
documentation of purchase (invoice and ownership title),
transport and entrance (RESA).
If you opt to drive your vehicle down from the United States (a
drive that can take several weeks, depending on how hard you
push it), expect delays and corruption at border crossings. It is
not a good idea to drive in Central America after dark (due to
bandidos and drunks staggering onto the darkened road), and
note that parts of southern Mexico and Central America ­
specifically Honduras ­ can get dicey.
For more information about driving from the U.S. to Central
America, you can purchase a new guidebook, Driving the Pan-
American Highway to Mexico and Central America
. You can now





order this one-of-a-kind book by writing to Costa Rica Books,
Suite 1 SJO 981, P.O.Box 025216, Miami Fl 33102-5216.