How to Get a Car in Panama
Considering a move to Panama and wondering how to get a car? This guide provides clear steps to help you understand the entire process, whether buying or renting a vehicle, ensuring you have all the necessary information at your disposal.
Do You Need a Vehicle?
If you live and work in central Panama, you might not need a private vehicle, as Uber, taxis, and the metro are quite efficient. Many expatriates in Panama do not own cars for this reason. However, if you plan on exploring beyond urban areas or desire convenience for weekend trips, owning or renting a car might be more suitable.
Buying a Car in Panama
Budget
The first step is setting a budget. Consider the purchase price and additional costs such as insurance, registration fees, and maintenance. Whether you are paying cash or seeking financing, knowing your financial limits will guide your options.
Research
Researching the type of car you want based on your budget is crucial. Popular websites for new and used cars in Panama include:
These platforms offer detailed listings and can help you compare prices and options effectively.
Dealership or Private Sale
Choosing between a dealership and a private sale is another important decision. Reputable dealerships in Panama City often have better customer service and offer warranties, which can be reassuring. Here are some well-known dealerships:
Private sales can offer lower prices but require more diligence in inspecting and verifying the car’s condition.
Inspect the Vehicle and Test Drive
Before finalizing a purchase, inspect the car and take it for a test drive. Hire a reliable mechanic to conduct a pre-purchase inspection, costing around $150, which can save you from future issues. During the test drive, check for unusual sounds, vibrations, and ensure all features are working properly.
Negotiate the Price
Haggling is standard practice in Panama. Research market prices beforehand to have a benchmark and be prepared to negotiate. Don’t settle for the first price offered, as there is usually room for a reduction.
Paperwork and Documentation
Ensure all paperwork is in order. This includes:
- Sales contract
- Maintenance records
- Vehicle history from the Autoridad de Tránsito y Transporte Terrestre (ATTT)
- Warranty documents
- Proof of insurance
- Vehicle registration certificate
- Technical inspection certificate
- Vehicle Identification Number (VIN) verification
Transfer Ownership
Initiate the transfer of ownership at the City Hall (Municipio) and then at the ATTT. This process, known as “traspaso,” typically takes about two days. Ensure payment is made after the registration is complete.
Insurance
Third-party liability insurance is mandatory in Panama. Some insurance providers include:
Ensure your car is insured before driving it.
Car Tax – Impuesto de Circulación (Placa)
Pay this annual tax based on the vehicle type and weight at the City Hall (Municipio de Panamá). Some banks also provide the option to pay online.
Renting a Car in Panama
Driving License
Foreigners can drive using their home country’s license for the first 90 days. After that, you need to convert your license to a Panamanian one.
Understand the Traffic Laws
Familiarize yourself with local traffic laws. Speed limits are 60-80 km/h in cities and 100 km/h on highways. Seat belts are mandatory, and mobile phone use while driving is prohibited.
Type of Vehicle
Choose the type of vehicle based on your needs. A 4-wheel drive is recommended for exploring the countryside, while a regular car suffices for urban travel.
Rental Requirements
Rental costs vary by season and car type. City cars typically cost $15-$40 per day, while 4×4 SUVs can be around $60 per day.
Several well-known rental companies in Panama include:
Price comparison websites like Expedia and Rentalcars can help find the best deals.
Conclusion
Whether buying or renting a car in Panama, being well-informed can make the process smoother and more cost-effective. Consider your needs, budget, and the legal requirements to enjoy hassle-free driving in Panama.
References
- Kraemer & Kraemer – Corporate Taxes in Panama: Vehicle Circulation Tax
- Expat Focus – Guide to Buying or Importing a Car in Panama
- Living in Panama – Buying a Used Car in Panama
- Chris Toone’s Blog – Renting a Car in Panama
- Panama Equity – Renting a Car in Panama: An Expat’s Guide
- Vista Cañas – The Complete Guide to Renting a Car in Panama
- Go Panama Bike Tours – Discover Panama by Bike
- World Biking – Country Information: Biking in Panama
- Komoot – Road Cycling Routes in Panama
Exploring Panama through a car can be an exciting experience, just make sure you follow the outlined steps to make the best decision for your needs.
