Argentina Buyer Guide - Navigating the Used Car Market Like a Pro

Purchasing a pre-owned automobile in Argentina may seem like an obstacle course due to unstable currency rates, involved documentation, and an overwhelming number of different types of automobiles available to consumers. In order to find a great price on exactly the right automobile either for traversing the bustling streets of Buenos Aires in a small compact car or an all-terrain rugged truck for your travels through Patagonia, you will require some intermediate knowledge.

You desire that your used automobile be dependable and within your budget while at the same time avoiding any unknown charges, legal difficulties, or things that could be mechanically challenging. The following information explains how to purchase a preowned vehicle in Argentina in a manner that is safe and intelligent.

Steps to Follow When Buying a Used Car

The process of purchasing a used automobile follows a certain path. If you overlook one step, your purchase will cost you time and/or money. Use the following five steps as a guide to identify your "ideal horse."

1. Research the Market

These steps will help you to identify what type of new vehicle will make up your "ideal horse" before you begin to consider specific vehicle options. Do you need an SUV that can hold your entire family? An efficient hatchback for daily commuting? Or a heavy-duty truck for work purposes? The next step is to determine what type of vehicles are available in your local area. For this, go to sites like CarAgencia and look at what vehicles are listed in your area. Take note of the dollar amount you see on the car listing webpage in your local currency, as in Argentina you'll see both US Dollars and Pesos listed.

2. Inspect the Vehicle

Before you purchase any used vehicle, thoroughly review the exterior to check for mismatched paint, uneven panel gaps (which may indicate the vehicle was involved in a previous accident) and under the hood for oil leaks and damaged/worn belts. You should also check the condition of the tires for uneven wear. The most important thing to do before purchasing is get a pre-purchase inspection from a licensed mechanic; a trained professional can discover costly problems that you may not see.

3. Take a Test Drive

Start your engine and check its performance when starting cold. If the engine isn't operating smoothly or does not run at a constant speed, it could be an indication that something is wrong. Test the transmission on city streets and include freeway driving. Make sure that every single electronic component functions properly (air conditioning, windows, radio).

4. Negotiate the Price

After completing your inspection of the vehicle, negotiate the price with the dealer or seller based on the deficiencies discovered in your inspection. Due to inflation affecting the pricing of goods and services in Argentina, it is likely that sellers will appreciate payment in cash (USD), so you may receive a large discount on the price of the vehicle if you pay in cash USD.

Popular Car Models in Argentina

Drivers in Argentina tend to prefer vehicles that are practical, durable, and easy to repair. Recent market data reveals that there are many brands with a large presence in the secondhand vehicle market. In addition to being the most desirable vehicles, hatchbacks and mid-sized pickup trucks are also very popular throughout the country.

The following list includes the most popular brands/models available throughout the country:

Paperwork and Documents

The legal process for transferring ownership of a vehicle is very strict in Argentina. You must complete the appropriate paperwork in order to legally purchase a vehicle. If you do this, then you will not be able to pay any traffic fines or tax liabilities as a result of the previous owner.

The Essential Document Checklist

To finish up with your sale, you will require a lot of specific papers and certificates before you can complete your transaction at the Registro Seccional (Vehicle Registry).

You should never pay for a vehicle until after you have the Informe de Dominio in your possession from the seller; or alternatively, if you are not sure that you have it, you can request it yourself at the national registry website using the number on the plate attached to the car that you would like to buy.

Safety Tips for Car Buyers

There are plenty of scammers in the used car industry. By following a few basic guidelines, you can keep your money and body safe.

• Always meet in public: It is important to meet with the seller and check out the vehicle in a busy and well-lit area such as in front of a local supermarket or at a gas station.

• Verify the seller's identity: You want to ensure that the person you are buying from is who they say they are. Make sure that the seller's name matches that of the seller on the Title (Title del Automotor). If a seller says they are selling the vehicle for a friend or cousin, do not purchase the vehicle from them.

• Never make a payment before seeing the vehicle: It is common for scammers to post false advertisements with stolen pictures and require a deposit to hold a vehicle until a potential buyer comes to see it; therefore, do not wire transfer to hold a car for a potential buyer.

• Make payments via secure methods: Carrying large quantities of cash in Argentina can pose a safety concern. Therefore, if possible, use bank wires from a secure bank. If you must withdraw cash for your vehicle purchase, exchange it at the bank and do the transaction at the bank or at a notary or registration location.

• Always verify the VIN: Always verify the VIN as well as the matching VIN on the vehicle. If they do not match, walk away.

Budgeting and Financing Options

In Argentina, budgeting for the purchase of a used automobile requires careful calculations. The vehicle's "sticker" price is simply one part of what you will need to budget for when you buy a used automobile.

Understanding the True Cost

When attempting to determine your budget for the used vehicle you wish to purchase, you should take into consideration the cost of transferring the car into your name. In Argentina, transferring a used vehicle costs approximately between 1.5% and 2.5% of its value, in addition to other costs such as a notary's fees and forms. Additionally, you need to factor in the cost of mandatory automobile insurance (seguro automotor) and the cost of an annual road tax (patente).

Navigating the Dual Currency System

Because of the current economic conditions in Argentina, you will find that some used vehicles will be priced in pesos and some others will be priced in US dollars. Most of the newer or more expensive used vehicles will be priced only in US dollars. If you have saved US dollars, you may have a significant advantage in negotiating with the seller of the vehicle. 

Sellers of used vehicles are generally more willing to negotiate their price down when payment will be made in US dollars; therefore, you will have a much better chance of getting a good deal on the purchase of a used automobile in Argentina if you pay with US dollars rather than pesos.

Financing Your Purchase

Financing a used car in Argentina can be expensive due to high interest rates. However, options exist:

• Personal Bank Loans: Many local banks offer personal loans (Préstamos Personales) that you can use to buy a car. The rates are usually fixed, but they are high.

• Prendario Loans: These are specific auto loans where the car acts as collateral. Dealerships often partner with banks to offer these.

• Dealership Financing: Some used car lots offer their own financing plans. Read the fine print carefully, as the interest rates adjust with inflation.

FAQs

What papers do I need to change the ownership of a vehicle in Argentina?

The owner of a vehicle must have an original title of the vehicle, signed Form 08, criminal verification (Formulario 12), title and license verification (Informe de Dominio), all current taxes and tickets; as well as identification for the buyer and seller (DNI) when doing the paperwork for vehicle ownership transfer with DNRPA (Dirección Nacional de los Registros Nacionales de la Propiedad de Automotores).

How to verify the legal history of a vehicle?

To verify the legality of a vehicle you will have to request an Informe de Dominio from site of DNRPA. You can do this by just entering in the plate number.

Can I purchase a vehicle in Argentina as an international citizen?

Yes, you will however be required to obtain a CDI (Clave de Identificación) or a CUIL/CUIT, with your registered address in Argentina. You will typically work with a public notary (Escribano) to file your paperwork, and ensure that it is filed properly.

Why are certain vehicles being offered for sale in USD while some are offered for sale in ARS?

Dealers offer vehicles in USD in order to minimize the impact of devaluation on the vehicle's value. The values are usually expressed in ARS for older or lower value vehicles; whereas newer, premium, or in high demand (trucks) vehicles are typically offered in USD.

Is the VTV (Verificación Técnica Vehicular) mandatory?

Yes, the VTV (or RTO depending where you are located) is mandatory for any vehicle that is 3 years old or older, or if it has travelled more than 60,000 kilometers. A person driving a vehicle that is older than, or has travelled more than the aforementioned distance without a valid VTV will be subject to fines and/or confiscation of their driver's license. Be sure that the vehicle that you are about to purchase has a current VTV sticker.