Buying Car

Richard Edwards

New member
May 14, 2006
89
0
0
Please advise or direct me to the thread about process, documents, etc. when buying a used car from an individual.

Thanks,

ED
 

J D Sauser

Silver
Nov 20, 2004
2,940
390
83
www.hispanosuizainvest.com
Please advise or direct me to the thread about process, documents, etc. when buying a used car from an individual.

Thanks,

ED

I have just bought a vehicle about two weeks ago.

  • Once I found the vehicle I had a "promesa de compra-venta" drafted and paid a deposit, so the car would be held for me until I had the necesairy funds wired over to my account.
  • You want to see the original registration (called Matricula). The matricula is also title and you are advised not to cary it in your car but keeping it in a safe place while you keep a photo copy of it your car, so, at times it will take time to finally see it in original, because owner and dealer will be cautious. But you want to see the ORIGINAL. You want to see the name of whom sells the car to you on it on the front and the word "ACTIVA" in the status box to the right of it. On the back nothing should be written... this is where the original owner (the one who's name is on the front) will sign it over to you and where you will sign bellow it at time of reception. Check the VIN. You also want to positively identify the seller (cedula and/or passport) and match him to the name on the matricula.
  • You will need good quality copies of the sellers cedula and/or passport. Make a good bunch of them. While you are at it, you need copies of your current ID. Yes, there is no problem with your passport and you not (yet) being a resident.
  • I then spoke to my lawyer which confirmed that the sales contract had to be drafted by a lawyer. So we did this in four (4) full copies... all to be later signed in original. They have to be notarized as to a lawyer (can be the same) with a notary public license to verfy signatures and all. As in all deals, you do not want to accept the "generous" offer of dealers to use their lawyer, because that's just what he is and he will only look after the dealer's interest.
  • You may want to take up the VIN number and engine number and check them throughout the vehicle for a match and run them by the Policia Nacional to make sure the vehicle is not missing somewhere, however they will not give you an official document unless you come with a signed contract... and nobody will sign a contract without you pushing all the cash over the table.
  • At this time you proceed to the transaction. They sign the contracts first and you do so too, for the time being, they keep the contracts. Then the owner alone signs of the back of the matricula. Only then you hand over payment against, all but one of the 3 contracts (again, all originally signed), the ORIGINAL signed matricula, which you now sign and keep and a receipt to state the same amount (*) as stating in the contract and that the vehicle is paid in full... signed by the seller and any dealer. It's your money against all papers at that time. You do not accept delays, excuses or explanations. It's now or never. (*) I have been suggested that we could state a lesser amount in the contract and receipt to pay less transfer tax... I have declined, you do as you see fit or as your lawyer advises.
  • Then you take the vehicle to the Policia Nacional (Plan Piloto) and they will take up the VIN and give you a little paper stating that they have copied the numeber and matched it to the one shown on the contract ... RD$ 100.oo.
  • With that paper and an original contract and the original matricula you go to Procuraduria, pay about RD$ 500.oo and have one of the signed copies of the contract sealed by them. It's kind of like a state notary and a good way to get 500 Pesos from you.
  • You go back to the police which will keep that Procuradoria notarized copy of the contract and hand you an other little paper which states that you can come back later that day or in a day or two.
  • The police will then issue a statement of non-issue, stating that the vehicle is not stolen. And a comprobante that the car is ready for transfer. With the copy of the old matricula, 1 original contract, and copy of the sellers cedula, you can now insure your vehicle and enjoy the roads of this country.
  • You will have your bank issue a bank certified check for the transfer tax. Many opinions have been posted on this forum in the past about how it may be calculated and they may have been right a the time. Two weeks back, it turned out to be 2% of the transaction amount shown on the contract. Finally we had to find out that on top of that there was a new tax of 1.3%. The check for the total amount has to be made out to the Tax Collector (el cobrador de impuestos) in RD$.
  • You will then want a tramitador or your lawyer to do the runarround and pull your new matricula... which should take about a day or two.
This was in Santo Domingo, DN. in the first days of March 2007.

Enjoy... J-D.
 

globalmike295

On Vacation
Jul 11, 2006
216
2
0
Would you still have to do ALL of this at a used car dealer? That sounds like too much trouble for a vehicle purchase.
 

J D Sauser

Silver
Nov 20, 2004
2,940
390
83
www.hispanosuizainvest.com
Would you still have to do ALL of this at a used car dealer? That sounds like too much trouble for a vehicle purchase.

Even more so, since you would not be dealing with the owner directly (and you will need to, as described). The above example was for a 1 year old vehicle at a used vehicle outlet/dealer.
New vehicles are easier and there is no transfer tax... something to keep in mind when you compare new to nearly new!

Some dealers will do that all for you (most will suggest), but that will take control out of your hands and you may not know whom all the dealer knows, hence my lawyers advice not to accept that offer... YOUR lawyer may advise you otherwise... but aking first would not hurt.

If that's too much trouble to you, there is still the bus, carros publicos and moto conchos. ;) Which part would you like to skip anyway? The police checking if it's stolen or not or paying transfer taxes in oder to be able to get your registration (matricula)?
What I would suggest to do, is to bring along YOUR lawyer (and they generally have a go4 that will do most of the standing in line and running) and have THEM do it all for you.

... J-D.
 

Chris

Gold
Oct 21, 2002
7,951
28
0
www.caribbetech.com
Excellent Post J D Sauser! and thanks. There has been a few enquiries on the board as to what paperwork is required and what the process is, so I'm going to sticky this for a while.
 

J D Sauser

Silver
Nov 20, 2004
2,940
390
83
www.hispanosuizainvest.com
Excellent Post J D Sauser! and thanks. There has been a few enquiries on the board as to what paperwork is required and what the process is, so I'm going to sticky this for a while.

Thanks to all, I am flatterd. :cheeky:
Please just keep in mind that laws and procedures where changing while this was processed in the first days of march 2007... it may well continue to do so. By the way... I love my guagua, a 2006 Toyota Hilux double cabin picup with a 160 HP turbo diesel engine... runs 27mls to a galon (about 43 km to the galon or 8.3 liters to 100km)!

Similarly, for residencias they now demand that birth certificates have to be presented authenticated by the dominican consulate at the applicants country... birth certificates are a worthless piece of paper as it does not photo identify the bearer and one could asume that somebody who has a valid passport was born at some point of time. Even my domincan lawyer found that funny. :tired: But then, she's a smart girl.


Thanks! ... J-D.
 

Rocky

Honorificabilitudinitatibus
Apr 4, 2002
13,993
208
0
111
www.rockysbar.com
I'm all for erring on the side of caution, but to go to the cops to assure that the vehicle you are buying is not stolen, when the vendor, properly identified with his/her cedula, is shown as the owner of said vehicle, on the matricula, seems like a complete waste of time.
 

J D Sauser

Silver
Nov 20, 2004
2,940
390
83
www.hispanosuizainvest.com
I'm all for erring on the side of caution, but to go to the cops to assure that the vehicle you are buying is not stolen, when the vendor, properly identified with his/her cedula, is shown as the owner of said vehicle, on the matricula, seems like a complete waste of time.

I understand your line of thinking, Rocky, it's a very logical one, and you may have more experience and thus confidence in the process than I do as a first time buyer here. However, I think that this is one point that is very important... to make sure the best way possible that there is no legal issue pending on the vehicle. After all, once the money changes hands... it's gone and the buyer is stuck with what ever deal he made.
Isn't that exactly what so many experienced forumites tell posters when they come on here to report about their deals gone bad... "why didn't you..."
Also Procuradoria was at that time not accepting transactions without a PN confirmation of the VIN and that the vehicle was "OK" nor did they seem to do the "quick" transfer at the Plan Piloto without a contract stamped off by Procuradoria, so it goes hand in hand. Actually, I don't think the process is completely wrong... it's just too many offices scattered all over town, waiting lines and "taxes" here and there.
Again this was in Santo Domingo... things may be less "organized" at other locations.

The dealer seemed to indicate that "he" could have had it done easier and quicker, yes even cheaper (less taxes... which tells something too.)... but then that was exactly what I did not want to... the dealer taking short cuts at his own discretion and pleasure...

... J-D.
 

Rocky

Honorificabilitudinitatibus
Apr 4, 2002
13,993
208
0
111
www.rockysbar.com
I understand your line of thinking, Rocky, it's a very logical one, and you may have more experience and thus confidence in the process than I do as a first time buyer here. However, I think that this is one point that is very important... to make sure the best way possible that there is no legal issue pending on the vehicle. After all, once the money changes hands... it's gone and the buyer is stuck with what ever deal he made. .
It's always good to err on the side of caution.
I'm not sure that I can see a way to get scammed with a stolen car, when the seller is properly identified and is on the matricula, but anything is possible.
There's nothing to lose, other than all the time devoted to doing the job.
I wouldn't bother doing it, but it doesn't mean that your advice is not sound.
 

DavidZ

Silver
Aug 29, 2005
3,512
238
63
www.vipcigartours.com
If the car came from the US, doing a Carfax report (www.carfax.com) before purchasing is a good idea... just need the VIN number and USD $19.95 for a single vehicle or 24.95 for unlimited vehicles to be checked in a 30 day period. Gives you all registration/reported service/inspections/date purchased & date sold info and related odometer readings. Also tells you if there was ever an insurance claim on the vehicle, as well as other info...
 

eralc777

New member
Aug 6, 2005
579
6
0
I am thinking about transport for when I move to DR in August. I dont have the money to buy a car when I get there, but I was thinking about how much it would be to rent one maybe for 12 months or if I could pay monthly to buy a car. Does anyone have an idea of prices??? I would prefer a jeep but just a standard car would be fine.

Also, how much would a scooter be? Maybe not a new one, but one that would get me from a to b.

Any help would be appreciated.
 

lucine

New member
Mar 21, 2007
65
0
0
I've been wondering if a scooter would take care of travel,within a 20mile radius let say. I'm curious also how much they run. I would think they might get stolen easily.
 

Rocky

Honorificabilitudinitatibus
Apr 4, 2002
13,993
208
0
111
www.rockysbar.com
I've been wondering if a scooter would take care of travel,within a 20mile radius let say. I'm curious also how much they run. I would think they might get stolen easily.
Bear in mind that they don't travel highway speeds, so they can be a bit dangerous between towns.
In town they are very practical.
Theft can be a problem, so you must take precautions.
 

hammerdown

Bronze
Apr 29, 2005
1,466
107
63
getting title from a dealer

I recently bought a car,(from a dealer), and paid a transfer tax of 1600 pesos. I had to return for the title, and when I got there they wanted me to pay another 9000 pesos for the title. Do I need to pay this? Let me know if there are any other ways around this, or did I buy from a mafioso?
Thanks
 

Rocky

Honorificabilitudinitatibus
Apr 4, 2002
13,993
208
0
111
www.rockysbar.com
I recently bought a car,(from a dealer), and paid a transfer tax of 1600 pesos. I had to return for the title, and when I got there they wanted me to pay another 9000 pesos for the title. Do I need to pay this? Let me know if there are any other ways around this, or did I buy from a mafioso?
Thanks
That's about the right price for an older car.
Everybody has to pay it.
Maybe they didn't tell you ahead of time, so it feels like you're getting ripped off, but it's not the case.
 

J D Sauser

Silver
Nov 20, 2004
2,940
390
83
www.hispanosuizainvest.com
I recently bought a car,(from a dealer), and paid a transfer tax of 1600 pesos. I had to return for the title, and when I got there they wanted me to pay another 9000 pesos for the title. Do I need to pay this? Let me know if there are any other ways around this, or did I buy from a mafioso?
Thanks

Your registration IS the title. No registration , no clear ownership, no way to hit the road legally.
The old registratin will show the name of the last owner and he as to sign it over to the new one on the back (ID who is signing!). The new one will show the new owner's name and he in turn will sign it over to a future buyer once he sells the car.
To get the new registration one has to go to the authorities or have somebody (dealer, lawyer or go4) do it and pay. That's where tansfer tax(ses) are cashed and any 3rd party honoraries for doing the runarround too.
Transfer fees and Taxes sum up to a few percents (I don have it handy right now, but I seem to remember 3.xx % of the value declared on the contract (which has to be a realistic value, in case you wish to write less than the sum paid).

... J-D.
 

Rocky

Honorificabilitudinitatibus
Apr 4, 2002
13,993
208
0
111
www.rockysbar.com
Your registration IS the title. No registration , no clear ownership, no way to hit the road legally.
The old registratin will show the name of the last owner and he as to sign it over to the new one on the back (ID who is signing!). The new one will show the new owner's name and he in turn will sign it over to a future buyer once he sells the car.
To get the new registration one has to go to the authorities or have somebody (dealer, lawyer or go4) do it and pay. That's where tansfer tax(ses) are cashed and any 3rd party honoraries for doing the runarround too.
Transfer fees and Taxes sum up to a few percents (I don have it handy right now, but I seem to remember 3.xx % of the value declared on the contract (which has to be a realistic value, in case you wish to write less than the sum paid).

... J-D.
I know that the year of the car and the engine size have an effect on the price of the transfer tax.