Shipping A Car/Buying a Car/My Experience

Jan 9, 2004
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Much has been written about this subject and everyone's opinion and experience varies. Hopefully I can provide a little guidance and share my experience with you.

First there seem to be two schools of thought on the subject. The first is to ship your own car, while the the second is buy it there. Both sides are passionate about their respective positions as has been shown in previous threads. Both schools of thought have merit, but you must choose the one that best fits your individual needs.

SHIPPING A CAR requires time and the need to involve multiple companies/persons to get the vehicle to its ultimate destination. (This assumes you already have a car to send). If you do not have a car to ship AND you do not have contacts to buy a good one here (here meaning wherever you currently reside outside the D.R.), you may be far better suited to skipping down to "buy it there."

Assuming you have your car and want to ship it, you must first find a transport carrier to get it to a port. Some shipping companies will have a working relationship with various transporters and can put you in touch with one.

The transporter will take your Title and any other bill of sale documents to the shipper, who will in turn prepare the proper paperwork for the Customs/Aduana department. Normally the car needs to be in a port 7-10 days prior to a vessel sailing. This is so the authorities have sufficient time to check for contraband and to determine that the car is not stolen.

Sailing times varyy and invariably there are delays. Just remember that it normally takes 1-2 days after arrival for the paperwork to be processed and final customs duties calculated. Once that has been completed, the vehicle is now ready to be paid for and released (unless the release date happens to coincide with what would later become Tropical Storm Fay). More on that in "My Experience."

Once the vehicle is released (no sigh of relief just yet) you now must acquire and pay for the placa (plate)/registration at the respective government office. Prior to this you should have already acquired insurance on the vehicle prior to leaving the port. That process, much like buying a used car in the U.S., calls for selecting coverages and having photos taken of the vehicle after its arrival. (Insurance companies require and normally takes photos at their office).

Once you have completed the above steps you need to go to Banreservas and pay for an inspection of the vehicle. Once you have your paid receipt, you need to go to another government office and have the vehicle inspected. Once "inspected" and I do use the term loosely, you are given a sticker for your windshield. Once completed you are now ready to enjoy all the driving pleasures the Dominican Republic has to offer.


BUY IT THERE can also be a long and tedious process. Buying a vehicle in The D.R. does not/should not/cannot be compared to what you may be used to elsewhere. (I am writing this for new/newer expats).

Typically, most cars in the D.R. are imported. Many are from auctions in the U.S. Those vehicles are/or could be off lease, tradeins etc. Invariably they were brought to the auction for a reason and generally the trade-ins are from people who may have sensed, or were told about apotential expensive upcoming repair and decided to trade the car. A little auction background is helpful here.

Typically foreign car buyers at auction (including dominicans) chase price first. By that I mean, they tend to want buy cars for the cheapest price. In order to achieve their goal, they often times look for cars that have a "story" and thus will/would be passed over by most U.S. dealers and thus sell for a lower price.

A "story car" is typically one where the auctioneer makes a verbal notation about the car, over 100,000 miles, "unibody"(potential frame damage etc), salvage title, transmission, etc. This is what is announced, not what else could be problematic about the vehicle. These cars are then purchased and usually shipped to other countries, including the D.R. Note though that not ALL the vehicles foreign dealers buy are "story cars," but enough that if you are going to purchase in the D.R., the following precautions should be taken.

If you do not know your cars, know your mechanic. He/she will be your first line of defense and should inspect and drive every vehicle you want to purchase. If you do not know your mechanic, then know your dealer. A reputable dealer, if you know/hear of one, can also be invaluable. All that being said, there are a few things you can do on your own.

Car fax and Auto Check are two independent companies that maintain databases with fairly reliable, but not foolproof, info on most cars registered in the U.S. From them you can find info on reported accidents with the vehicle as well as the last registered mileage history. These are two invaluable weapons when you want to check the accuracy of the odometer (odometers are regularly rolled back in the D.R) and the story from the dealer telling you the vehicle was never in an accident. But these companies are not foolproof.

Most rental companies are self insured and do not report accidents like the major insurance companies do. Thus a rental could have been involved in an accident and repaired with no history noted in the databases.

Check the exhaust for any signs of smoke, either blue or white for more than a few seconds, may indicate potential problems. Check the fluids, transmission, oil and anti-freeze. Make sure they are full and clean. Pay particular attention to the transmission dipstick. Smell the fluid on the dipstick, if it gives off a burnt odor you should have the trannmission checked by a mechanic. Check the brake pedal, drivers seat and rugs for wear. If they are heavily worn and the odometer indicates the car has 50-60k miles, buyer beware. Stand back and look at the paint work on each side of the vehicle as well as the hood and trunk. Any color variations may provide a hint as to prior accidents/repaints. Play with all of the buttons on the dashboard to insure everything works. This list can go on, but I think you get the picture.

One final note, pay to have the vehicle hooked to a diagnostic computer. Dealers regularly turn off the "check engine" light to mask certain problems a car may be experiencing, but the code may still be present in the cars computer.


MY EXPERIENCE is fairly typical, but note that I used clients here in the U.S with dealer contacts in the D.R. to minimize my involvement with the process and Aduana. Note, the car was shipped in the dealers name, so that he could retrieve it from the port in case I was unable to get to the Island (this is to prevent the daily parking fee from overtaking the price of the car in the event I could not get to the D.R. for a month or two)

Through my clients I shipped a 2002 (yes it can be done) Ford Escape, via car transporter, to the port in New Jersey on July 16, 2008. The car was checked, paperwork processed and the vehicle loaded on July 28, 2008.

The ship stopped in Miami for a short period and arrived in the D.R. on August 11, 2008.

I had already secured car insurance and the provisional insurance card was in the dealers hands.

While the paperwork (customs calculations) normally takes 1-2 days, the dealer I used was unable to go the port because of the tropical storm (ultimately "Fay") passing through the D.R.

On August 16, 2008, my flight arrives into Santo Domingo. Most of the storm has passed, but evidence of the wind and rain is obvious.

On August 18, 2008, the car was retrieved from the port by the dealer. I met him that evening and he took me to the car and provided me the port documents and receipts for the duties/fees.

August 19, 2008, the dealer gets and gives me my placa (plate) and registration. He then takes a copy of my translated passport and drivers license to a lawyer and has the contract drawn up for the vehicle to be transferred to my name.

As a precaution, I also have the brakes checked by a mechanic. Salt air on the ocean has a way of wreaking havoc on the braking system.

August 19, 2008, with the car in my possession, but without the new title, permanent insurance card, or an inspection I head to Bavaro for a meeting.

August 21, 2008, the dealer sends by Metropac the new title and other relevant documents. Since I have no time to get an inspection sticker, that part of the process will need to wait for my return.

The dealer proved to be invaluable in taking care of the registration, transfer and title.

Total costs of shipping, customs, etc., $6,388.41 breakdown this way:

Transportion to the port in New Jersey $125.00 USD;
Transportation via ship to Santo Domingo $850.00 USD;
Customs/Aduana/Dealer (179,000 R.D) $5,188.41 USD;
Legal fee contract of sale into my name $225.00 USD

In my final analysis and based on current prices for an equivalent car in S.D. I probably only saved $1,000-$1,500. Was it worth it? To me, yes as I don't have the time to spend looking for a car in the capital or elsewhere. However, that analysis would change were I to be a full time resident.

The bottom line with shipping vs. buying is that one can be more favorable than the other based on individual circumstances and needs

I hope this information has been helpful.


Respectfully,
Playacaribe2
 
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socuban

New member
Nov 24, 2002
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Excellent post, thank you!

I suppose that if the new resident exception could have been used, your line item cost;

"Customs/Aduana/Dealer (179,000 R.D) $5,188.41 USD;"

tax portion might have been recalculated to 50-60% of vehicle value instead of full cost?
 

AK74

On Vacation!
Jun 18, 2007
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Excellent highly professional post, thank you!

I`d add about Carfax (or Autocheck as they use basically the same database).

Time shows that Carfax does more damage than good thing.


First, "accident history"

In USA in order to get insurance payment owner must file a police report and insurance claim. Both these documents are automatically reflected in Carfax like "accident", although in reality it can be only a scratch left in a parking lot but
without police report owner cannot get his $200-$300 to repaint.

Second, "without accident history".

Rent companies were mentionned, but it is not the whole story. Carfax by all means tries to hide the fact that
it covers vehicles only in 15 or 17 states of 49. So if a car goes from one of those 32 "non covered" states, it may have three totals but still be with "clean Carfax".

Carfax can be trusted only so-so both way.

Even with mileage.

My personal example. A couple of years ago I bought
and registered Nissan Maxima with 46 000 miles. When I received title from Albany it stated 76 000 miles. I wrote to DMV, they investigated, apologized for clerical error, sent me title with correct mileage 46 000 but in Carfax it still was 76 000 !!! They said they cannot change in database. They gave me as a dealer a letter - explanation. But who trust letters or explanations if odometer shows 46 and Carfax 76 ?! Rolled - back miles.

Carfax is not good. ASk any dealer with long experience.
 
Jan 9, 2004
10,890
2,215
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Excellent post, thank you!

I suppose that if the new resident exception could have been used, your line item cost;

"Customs/Aduana/Dealer (179,000 R.D) $5,188.41 USD;"

tax portion might have been recalculated to 50-60% of vehicle value instead of full cost?



Yes the tax would have been reduced, but according to the information I received, using the one time new resident tax reduction would have only saved 30,000-35,000 RD in taxes.

Contrary to popular belief, the reduction only applies to the import duty, not on the 16% ITBIS (sales tax on the value of the vehicle) nor on the placa/marbete/servicio.

Respectfully,
Playacaribe2
 

AK74

On Vacation!
Jun 18, 2007
842
36
0
Yes the tax would have been reduced, but according to the information I received, using the one time new resident tax reduction would have only saved 30,000-35,000 RD in taxes.

Contrary to popular belief, the reduction only applies to the import duty, not on the 16% ITBIS (sales tax on the value of the vehicle) nor on the placa/marbete/servicio.

Respectfully,
Playacaribe2


Thank you again for the time and effort to share a very important information. This thread could be made STICKY I guess.

Just a little side coimment. I dare guess that you are not a professional auto dealer. I may be mistaken though and will apologize in this case. But a note regarding auctions is not correct. Being a ten year car exporter I can show and explain what in particular is not correct, but the original post was mostly about the process of bringing a car to this country, not about how and where to buy it, so I do not see any need to elaborate about auctions, their types, their pluses and minuses.

If any one is interested , let me know and I gladly share any experience and information that I have.
 
Jan 9, 2004
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Thanks Playacaribe2, but what about buying a new car or leasing a car in the DR?

I am not sure if Leasing is even offered there. Perhaps a resident with more local experience can answer that one.

As to buying new, I would definitely consider buying it there, I think it makes no sense to purchase new abroad and then ship to the D.R.

My only concern would be comparing apples to apples. Is the new car in the D.R equivalent to a new one purchased abroad. By way of example, some new cars for export only may not have catalytic converters as they are not required in some countries. A better local example would be those Hyundai cream colored taxis turistica. If you happen to ride in one, note that they are not equipped with airbags (look closely at the steering wheel, yet the advent of airbags predates those vehicles. They were purposefully left to control the price. The bottom line is new cars made for export may not be the same as new cars sold in The USA or the EU.


Respectfully,
Playacaribe2
 
Jan 9, 2004
10,890
2,215
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Thank you again for the time and effort to share a very important information. This thread could be made STICKY I guess.

Just a little side coimment. I dare guess that you are not a professional auto dealer. I may be mistaken though and will apologize in this case. But a note regarding auctions is not correct. Being a ten year car exporter I can show and explain what in particular is not correct, but the original post was mostly about the process of bringing a car to this country, not about how and where to buy it, so I do not see any need to elaborate about auctions, their types, their pluses and minuses.

If any one is interested , let me know and I gladly share any experience and information that I have.




Thank You for the kind words concerning my post. Yes, the post was more informational about bringing a car to the D.R., but I could not help but to add the note about what I have seen and observed about the many foreign buyers (including Dominicans) at the auctions.

No, I am not a dealer, but I do have over 30 years around the business and represent a dealer who is one of the oldest and largest buyers of regular and distressed automobiles in the world. I am registered as a buyer for them at all the major auctions in the US.

My information about car auctions may not be complete (it was not meant to be), but it is accurate.


Respectfully,
Playacaribe2
 

socuban

New member
Nov 24, 2002
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Contrary to popular belief, the reduction only applies to the import duty, not on the 16% ITBIS (sales tax on the value of the vehicle) nor on the placa/marbete/servicio.

Respectfully,
Playacaribe2

Very good detail to know, thanks again! I guess it depends on the vehicle being imported if the savings are worth the effort to apply the new resident exemption. In my case it looks like around ~ US$2500 in savings on the [gravamen];

Direcci?n General de Aduanas - DGA


aduanaslandrover1.jpg
 

J D Sauser

Silver
Nov 20, 2004
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www.hispanosuizainvest.com
... Note, the car was shipped in the dealers name, so that he could retrieve it from the port in case I was unable to get to the Island (this is to prevent the daily parking fee from overtaking the price of the car in the event I could not get to the D.R. for a month or two)


Interesting post, Thanks!

Did you personally acquire the vehicle in the States in your name and what was the dealer's cut on the whole deal (for his service of having it shipped to his name, retrieving the vehicle at aduana and the placas)?

I think that having a knowledgeable importer-dealer retrieve the vehicle in his name, may be a major part of the success beyond the comfort factor of not having to pay for parking space. He knows how things are run, he knows people and he's also known. On the other hand it may pose a risk, as a vehicle sent in XYZ's name, could easily be declared his if he wanted to give you a little hard time. Yet, if you can trust the dealer and structure a contract which will protect you here in the DR, I think this is the way to go when importing a vehicle to this country.

Is that a service that particular dealer offers to the public in general or was it a friendly service limited to you?

Thanks! ... J-D.
 
Jan 9, 2004
10,890
2,215
113
Interesting post, Thanks!

Did you personally acquire the vehicle in the States in your name and what was the dealer's cut on the whole deal (for his service of having it shipped to his name, retrieving the vehicle at aduana and the placas)?

I think that having a knowledgeable importer-dealer retrieve the vehicle in his name, may be a major part of the success beyond the comfort factor of not having to pay for parking space. He knows how things are run, he knows people and he's also known. On the other hand it may pose a risk, as a vehicle sent in XYZ's name, could easily be declared his if he wanted to give you a little hard time. Yet, if you can trust the dealer and structure a contract which will protect you here in the DR, I think this is the way to go when importing a vehicle to this country.

Is that a service that particular dealer offers to the public in general or was it a friendly service limited to you?

Thanks! ... J-D.



The vehicle went from a dealer here (I had paid for it prior, but for document purposes it was left in the dealers name here) and sold to the dealer there (dealer to dealer)

The 179,000 pesos included a dealer fee of $500.00 to deal with Aduana, retrieve the car, register the car and get plates, get all the necessary paperwork to the lawyer to transfer title to my name (note the lawyer fee to prepare the contract of sale was $225.00), to acquire new title, and to send me the original documents via Metropac as I was, at that point, in Bavaro.

The dealer is a friend of my clients here and as such I felt reasonably comfortable with the process. In the end it worked out fine. Certainly as I noted there were some delays, but all in all the process worked for me.

I am not sure if he offers the service to the public, but I will ask him as he is scheduled to be in the states this week.


Respectfully,
Playacaribe2
 
Feb 7, 2007
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Lawyer's fee of US$ 225 for a contract was a rip-off.

Lawyers have those contracts pre-drafted and what they do they just enter parties' names there.

My notary/lawyer charged me 1000 pesos for a notarized contract with all the seals.
 
Jan 9, 2004
10,890
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Lawyer's fee of US$ 225 for a contract was a rip-off.

Lawyers have those contracts pre-drafted and what they do they just enter parties' names there.

My notary/lawyer charged me 1000 pesos for a notarized contract with all the seals.


Maybe it was a "rip-off" and maybe it wasn't. What I do know is that my passport needed to be translated into Spanish and the contract needed to be done immediately as I did not want to spend 1-2 more nights in the capital at $100 a night. I paid for an expedited service and I received it.


Respectfully,
Playacaribe2
 

J D Sauser

Silver
Nov 20, 2004
2,940
390
83
www.hispanosuizainvest.com
The vehicle went from a dealer here (I had paid for it prior, but for document purposes it was left in the dealers name here) and sold to the dealer there (dealer to dealer)

The 179,000 pesos included a dealer fee of $500.00 to deal with Aduana, retrieve the car, register the car and get plates, get all the necessary paperwork to the lawyer to transfer title to my name (note the lawyer fee to prepare the contract of sale was $225.00), to acquire new title, and to send me the original documents via Metropac as I was, at that point, in Bavaro.

The dealer is a friend of my clients here and as such I felt reasonably comfortable with the process. In the end it worked out fine. Certainly as I noted there were some delays, but all in all the process worked for me.

I am not sure if he offers the service to the public, but I will ask him as he is scheduled to be in the states this week.


Respectfully,
Playacaribe2

I think those (USD ?) 500.oo were a worth while investment as it probably was the key to your success... in time and money.

Thanks! J-D.
 

AK74

On Vacation!
Jun 18, 2007
842
36
0
Thank You for the kind words concerning my post. Yes, the post was more informational about bringing a car to the D.R., but I could not help but to add the note about what I have seen and observed about the many foreign buyers (including Dominicans) at the auctions.

No, I am not a dealer, but I do have over 30 years around the business and represent a dealer who is one of the oldest and largest buyers of regular and distressed automobiles in the world. I am registered as a buyer for them at all the major auctions in the US.

My information about car auctions may not be complete (it was not meant to be), but it is accurate.


Respectfully,
Playacaribe2


Thank you for clarification!

To this I can add one thing only. When I get orderes on especially expensive used cars ( $40 000 - $75 000 LX470, Cayenne Turbo, etc) - I buy in one place
only - Manheim Professional Dealers-only Auto Auction. And never from an indiviadual dealer but only from manufacturer or from an establisheb Bank (Chase, World Omni Financial etc). There is no other source of quality used car in existence even close to it. In terms of risk, condition, proven disclosure, etc.

If you can name any one source that is better than Manheim Exotic Sale or Manheim Franchise sale - I will be extremelly obliged to you BIG TIME!!

I am not talking about junk cars auctions that are open to general public of course (police auctions, bank auctions, week-end auctions, federal auctions, etc). I am talking about closed wholesale auctions for professionals.
 

socuban

New member
Nov 24, 2002
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My vehicle keeps appreciating in value!

I was going through the motions of getting quotes and details to ship a vehicle over. I get back on the aduanas site to check out the latest cost estimates and lo and behold my vehicle model went up in value considerably since my posting of August:laugh:

I'm not doing it this go 'round, too many :bandit: spoil the soup, lol.

Looks like I'll be buying locally unless "they" get their act together shortly (not holding breath for more than 2 seconds).


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