Buying a car in Brazil

Purchasing a new car from the dealership in Brazil is a pretty straight forward transaction as it is in most countries. The major differences here are in the excessive number and amount of taxes and fees involved.

Apart from the 6 taxes that are already hidden in the sticker price of the vehicle you will also be paying a tax called the IPI (Imposto sobre Produtos Industrializados). Then there will be the IPVA (Imposto sobre a Propriedade de Veículos Automotores) which you will pay every year, DPVAT (Danos Pessoais Causados por Veículos Automotores de Via Terrestre) which is the compulsory insurance you pay. Both IPVA and DPVAT are paid when licensing your car each year. Also on the purchase the vehicle must be inspected by DETRAN so there is a fee for that, transfer fees paid to the Cartório (through the dealer),

If the government succeeds in passing the re-introduction of the CPMF (Contribuição Provisório sobre Movimentação Financeira) then you'll also pay that through your bank. If the funds to purchase the vehicle are transfered from abroad, then you'll also end up paying IOF (Imposto sobre Operações Financeiras).

You will also have the annual license fee and if financing the vehicle you will very likely have to purchase auto insurance over and above the compulsory DPVAT.

Then of course there is the DETPAVIB (Dumb Enough to Purchase a Vehicle in Brazil) tax... or at least there should be, since most vehicles are imported, you pay a 60% import tax on top of everything else, and those that aren't imported are already more expensive than the same vehicle in the USA.

Purchasing a used (I love the Brazilian term "Semi-Novo") vehicle... scary business and I'd personally recommend that you avoid it at all costs. You'll pay all of the above taxes and fees, you need to pray to your "higher power" that the previous owner didn't rack up thousands of Reais in traffic fines, because those stay with the vehicle and if unpaid, guess who gets stuck with paying them? Yep, you're on the hook for them. Used vehicles purchased from dealerships usually come with a 90 day warranty, unless the car is so new that it's still covered by the manufacturer's warranty.

Thinking of a private purchase of a used vehicle....... do yourself a favor, run, don't walk to the nearest Psychiatric Hospital and admit yourself. Just so many pitfalls involved there that it's like playing Russian Roulette with 5 bullets in the drum. Don't even go there... you'll thank me later.

Oh yes, and if you reside in Greater São Paulo, then you are subject to the "Rodizio" and I'm not talking about the "all you can eat barbecue restaurants, or pizzarias" this term refers to the one day per week prohibition of driving your vehicle in the central part of São Paulo and the day is determined by the last number of your license plate.

Cheers,
James     Expat-blog Experts Team

People shouldn't be scared about buying a used vehicle in Brazil just because of the tickets and fees the previous owner may have racked up. While checking out the vehicle, take a picture of the title. You'll see the RENAVAM number and the plate number. With those two numbers, you can see the vehicle's entire history, including unpaid tickets, fines and fees. It's standard practice to then lower your offer based on that. Trustworthy people will tell you the unpaid fines the vehicle has up front, and if they lie about it, don't buy from them, obviously. Take the same precautions buying used you would in your home country and you'll be fine. If you don't speak Portuguese, make a Brazilian friend who speaks English.

Olx.com is Brazil's craigslist. I've used it without any problems. Another good idea: go to a garage/mechanic and tell them you plan on buying a car or motorcycle. Chances are they'll offer to check out the car/moto for you for free (the idea being you'll become their client). When dealing with the seller of the vehicle and after your initial check, if you're interested in purchasing, ask the seller if he's willing to take the vehicle to your mechanic for a final once over. I've dealt with 4 different sellers and all said yes, no questions asked. All told me it was standard practice and were more than willing to do it.

On another note it's pretty disheartening that one of this forum's experts offered no information but plenty of histeria (prey to your Gods? Give me a break!) about buying a used vehicle in Brazil. Buying used carries risks in any country, but you can also get great deals on good vehicles. Know your limits, limit your risk and you can find a good used vehicle in Brazil for a fair price. Don't buy into the "all Brazilians want to take foreigners for a ride" crap.

If you will plan to live in São Paulo, consider also ditching the car.  The city has about 30,000 licensed taxicab drivers, and with exception of one or two, most all the cab fare rides I 've taken were as good as it gets point A to point B.

  Bear in mind that while there is no medallion plates, these licensed taxicabs are mostly independently owned and operated and license holders have a vested interest in keeping it safe and honest.  A license, which is beholden by the City, however, the right of concession is transferrable and there actual going rates should be around R$ 100,000.00 + vehicle.   

Since licensed Taxicab operators have subsidized purchase prices on authorized vehicles, by and large, the city's taxicab fleet is in excelent shape.  Mostly Late Models.

There are a number of auto rental companies, and while their rates are no bargain, an occasional user will find them within affordable range. 

Avoid Uber, there are plenty  of cases and tell tales about sexual harrassment, sheer incompetence, and gouging.   

Lastly, the city's train, bus and subway grid  while not perfect, is as good as you can get.

"Then there will be the IPVA (Imposto sobre a Propriedade de Veículos Automotores) which you will pay every year,"

An update here.  Older cars, after a certain number of years, are not subject to the IPVA. So that late 80's model might come even cheaper than you antecipated with the tax waiver.


"and those that aren't imported are already more expensive than the same vehicle in the USA."  
It depends on the vehicle. A lot of the entry level models, you just can't find in the US in the first place.
Prices on new ones are no bargain, as of late, since the shortage of Computer Chips came into place. It used to be that you could get a brand new, entry level, model, for slightly under USD 15,000, which buys you nothing in the USA.  This going back about 2 years ago.  These days, a four banger 1000 cc, goes for about USD 20,000. Which is what most people drive around here.


" You'll pay all of the above taxes and fees, you need to pray to your "higher power" that the previous owner didn't rack up thousands of Reais in traffic fines, because those stay with the vehicle and if unpaid, guess who gets stuck with paying them?
"
correct.  you need a Despachante to pull the Detrain Records on the vehicle. Don't try to do the paperwork on your own. Get a referred Despachante.  


Thinking of a private purchase of a used vehicle....... do yourself a favor, run, don't walk to the nearest Psychiatric Hospital and admit yourself. Just so many pitfalls involved there that it's like playing Russian Roulette with 5 bullets in the drum. Don't even go there... you'll thank me later.

For most part, correct. Nonetheless, you can always go for those refurb jobs from collectors, mostly carburated ones.  Think of Chevy Opalas, Ford Mavericks, VW Beetles, the old Toyota Trucks ( Bandeirante here, abroad is the  Land Cruiser ).

And by the way, Owner Operator Taxicab drivers tend to maintain their vehicles better than in the US. And they qualify for tax  exemptions.  If you can find a taxicab license for a reasonable sum, you might pay a little more on insurance, but the discounts on new models are substantial. A lot of old timers maintain the license, no top lights, and they buy it every three years, making a profit on the trade up, when they sell the old vehicle to private buyers.

Oh yes, and if you reside in Greater São Paulo, then you are subject to the "Rodizio" this term refers to the one day per week prohibition of driving your vehicle in the central part of São Paulo and the day is determined by the last number of your license plate.

The day off rotation only applies only to certain hours of the day, which coincide with the Rush Hour traffic, mornings and afternoon-evenings.  

Yes, I own and have bought cars.  Yes, I could write a book about it. Yes, there is a huge risk in buying a used car from a private person. I could cry you a river about my one experience in buying a used car. Yes, I was totally and completely screwed, pray you won't be, It was ugly, very expensive, just about equal, to the purchase price, and was never resolved. 

Buying new, or buying from a dealer makes it all easy. I drive a VW Saveiro, made in Brazil.  They sell new for what I would consider the price to be half, or less, of a similar car in the USA, if one was available. Not knowing where you live, if, in a city, I totally agree with questioning the reasoning to own a car. For me, mostly in SP, UBER works great, taxis are not as good, the busses are very good for the most part, and the trains work great.  Both traffic in SP and just parking are very bad. I rarely use the car locally, it's not worth the trouble, and the good part about living downtown, you're close to everything.

 You should think twice before buying anything fancy, jealousy turns into theft or vandalism quickly. I still like owning a car.

If people buy and sell directly, then they can both save the (large) expenses of the dealerships ....they just need to be prepared to deal with more of the risks ....there's still a lot of risk with buying from a dealership ....on the other hand if you buy a new car then its guaranteed you will be screwed .... I once sold a car to a woman and a week later it literally fell in half, she was not happy ... life is a bowl of cherries, but they all come with pits ....

All above posts have some valuable inputs.  As RRAYPO outlined, buying from a Dealership, brand new might be the way to go for the novice buyer.

There are plenty published auctions, but I would leave it to the pros.  You can tell whether it is a lemon or not. And we do not have a VIN Tracking Service good enough as they have in the US, where you can determine if a vehicle was salvage. 

Out here, it's the move the hot potato collective mindset.  Let someone else take the hit on your loss. There is a lot of misrepresentation and concealment out there by private parties and used car dealers.  

The "Agio" practice has made a come back here ( surcharge over sticker price _), and simply there is no way around this.  Just about 2 years ago, you could haggle and get away with promotional events to get you through their doors.  Even GM had this factory floor events.  Not anymore. But as I read and heard, the same gouging practice prevails in the US with empty lots. At least in the US, makers can punish their dealers by removing them from valuable inventory on sought after nameplates. 

Again, given the dollar parity, you will find entry level models here ( strippers for most part, typically a 4 banger 1000cc ) that can move, and are, for American Standards there is , a good bargain.  Not long ago a VW 4 cyl 1000cc turbo ( the sedan Virtus or the T-Cross ) for close to about R$ 80,000.  A Toyota Corolla for about R$ 120.000. 

That price, not accounting for tax, delivery, prep services, insurance. 

If you depend on your car for your livelyhood, then it a must have item.  If you live in a large metro like Campinas, which is a sprawl, a car is a necessary item. 

If you live in Sao Paulo, then, unless you get around a lot, a car is a luxury. 

As far as the Taxicab experience, I take for granted I am a native Portuguese experience, so I am not taken advantage on rides. 

Also beware, here on large metro areas, you don't get pulled over by the cops for a moving violation. If the location warrants, the city has cameras all over and you only become aware you have been fined once the ticket, with your car photo getting caught, is sent by the mail.

I will take the time to get into auto ownership, if |I were you.