Bank loans in Ecuador

lebowski888 wrote:

I can't speak to the experience of buying a car in Ecuador, but I can say that major car dealers (Toyota, Kia, chevy,etc} advertise financing.

I paid cash in Quito (via overseas bank wire) for my 2016 Chevy Sail, so I didn't do intensive research on car loans.

I would be surprised if an Expat could get a car loan secured only by the vehicle, regardless of what the billboards are supposedly offering.  If the car was theoretically totaled, the lender would be SOL (out of luck).

A related (though probably moot) issue is that new arrivals usually have no credit history in Ecuador.

cccmedia

lebowski888 wrote:

When the time comes for me to get a car, I'll do what I've always done: buy a quality car model as recommended by consumer reports, buy low mileage used and pay cash. 

But I am still bummed I can't import my Lexus to Ecuador. I do love it. Though that car would probably make me a constant target for kidnapping.

There isn't an entity like carfax that compiles service records.

I'd never get a used car in Ecuador for this reason and also because cars only depreciate about 7% a year at most. This includes the first year.

Used cars are expensive here, and considering the bad condition of many roads, and the flooding?

Hey, I don't know how they were driven or how many real miles. 

Thank you, but no thank you to used cars.

vsimple. wrote:

There isn't an entity like carfax that compiles service records.


Used cars are expensive here, and considering the bad condition of many roads, and the flooding?

Hey, I don't know how they were driven or how many real miles. 

Thank you, but no thank you to used cars.

Excellent points that are peculiar to Ecuador. I hadn't considered that.  The  system for VIN checking, accurate titles, etc. is non-existent. I'll keep that in mind when I need to look for one. Maybe the laws will change by then, anyhow

lebowski888 wrote:

vsimple. wrote:

There isn't an entity like carfax that compiles service records.


Used cars are expensive here, and considering the bad condition of many roads, and the flooding?

Hey, I don't know how they were driven or how many real miles. 

Thank you, but no thank you to used cars.

Excellent points that are peculiar to Ecuador. I hadn't considered that.  The  system for VIN checking, accurate titles, etc. is non-existent. I'll keep that in mind when I need to look for one. Maybe the laws will change by then, anyhow

It’s alright, and yeah things are different here. We all learn new things every day, and it’s better when info is shared. With buying cars here, it’ll ultimately end with getting a much lesser car for the price.

But speaking about the law, there are some exceptions with lower taxes. Hybrids are exempt for some taxes including sales tax (12%). So something like a Kia Niro is about $28,000. Unfortunately, there aren't many cheaper options and cheapest I believe is Hyundai Ioniq which costs about $25,000.

With the engines they have, I would get something cheaper.

MikeJosha wrote:

I put my money in  real estate ... apartment in Baños, house in Baños, farm in Palora, and three properties. We average 10% income, and I do occasional building partnerships with local builders, at 20% return plus capital per 120 days. I am not smart, but find Ecuadorian business pretty easy these past 12 years.

That's a fascinating post, Mikejosha.

You are modest and (I believe) much smarter than you think you are.

Most Expats would fall down a figurative hole if they attempted half of what you are obviously succeeding at.

----

Note to Expats:  don't try this stuff unless Mikejosha has personally taught you his métodos.

cccmedia

dumluk wrote:

I've always, (at least here in latin amer) bought used cars with low mileage from local execs or burned out gringos/as and will continue to do so.

Good job, Dumluk.

Buying your cars from burnt-out Gringos and exiting execs is the best idea I've seen you post on this site.

Most Expats should probably do the same, but if they're not as savvy as you, they should consider 'buying used' from a dealership....

If a burnt-out Gringo rips them off in some way
      they won't have any recourse.

cccmedia

dumluk wrote:

I have heard that new cars (at least new, maybe used) can be bought duty free in Iquitos, Peru.....Would you know anything about that? Of course you cant just drive them out of there...You have to put them on a boat and ship them to the closest port on the hwy sistem.......

Iquitos, huh?

So far on this Peru trip I have been in Lima with its plentiful casinos, tasty food and safe, Expat-friendly Miraflores district.   

I think of Iquitos, Peru, as a steamy inland jungle, a hotbed of shamans proffering their fancy ayahuasca potions and incantations   -- a bizarre and obscure fifth-dimension .. where a North American can appear and "disappear" amidst unusual dreadlocked company.

Go to Iquitos to buy a car and ship it to some more-civilized port to save a thousand dollars or even more by evading/avoiding a tax "duty"?  Thus reinvesting some of the putative savings in car-shipment fees, a port fee plus insurance against damage during shipment....

All the time figuring out how and where to register the car, how to store it in Peru or wherever when the owner is away, paying the annual property tax on the vehicle, dealing with drivers insurance and licensing and half a dozen other trámites I cannot even foresee.

----

I'm all for legally gaming the system when it comes to avoiding payment of a worldwide income-tax to a South American country .. or figuring out a workaround to sidestep an airline's onward-travel requirement.

But going to Iquitos, Peru, to buy a car
    and then dealing with the ensuing porquería ?

I don't see how it's possibly worth it.

So count me out.

In fact, count me as rejecting such a possibility
                              with 'extreme prejudice'.

  --  cccmedia in the Peruvian capital

RobinJoel wrote:

Hi All!

This post has provided much information with so many comments. We have decided to wait and pay cash for a car/truck when we buy.  A friend who is like family and has helped us in many ways, also Ecuadorina, will negotiate the price of what we want and then we will buy it.

We do need one due the area in which we live and we do want to travel.  As a couple, a car/truck will make it easier.

Thank you everyone.

Robin

Just be careful when it comes to "friends." Try to be more independent and not involve "friends" with purchases like cars. You can easily find out the price of a car by looking at the dealer's face book page as they often have monthly deals. Read some of the comments as well. This of course will require a level of Spanish.

Some offers are on a national basis and are something like free matricula or a free whatever.

The best thing about living in a new country is to actually do the stuff on your own. To actually learn and do it yourself.

This is of course my opinion and reflects generally to anyone interested in living in Ecuador.

@vsimple Another way to put it might be this - living like a middle to upper-middle class North American in Ecuador is not cheap.  However, living like the typical Ecuadorian in Ecuador can be very inexpensive for a North American, especially if you get out of Quito, one of the most expensive areas to be.

if you are serious about money, and you avoid temptations like bar b que restaurants, Ecuador

is easy on the pocketbook...most folks live on less than $400 a month...a gringo can live well on $600 a month, including rent, cable, internet, food, wine.

Wow.  Wish I had the lungs of a llama I’d move back. Anything looks cheap compared to California.

My daughter was born at home in Tumbaco. The copay was $200. Dr Celi passed away   That was a beautiful experience. It was all natural. 💕💙

saludos