Do you want to buy a car in Chile? We explain you how to choose it, what documents you need to be the legal owner after you buy a car in Chile... and more
Do you want to buy a car in Chile? Or maybe a truck, or a van? And you wonder how to proceed? In this article we describe the steps to follow to buy a car in Chile, and we give you some tips.
In Chile, the discount on a vehicle is more related to its age than the number of kilometers traveled. Main roads and highways are of good quality, but country roads are much less maintained, so that cars are damaged quickly, especially chassis and dampers. This is why the prices of used cars are not necessarily advantageous compared to the physical condition of the vehicles. Be aware that environmental restrictions exist, which limit the traffic of vehicles over 8 years old during winter. Read our article about pollution in Chile for details.
The Autos Online website may help you get an idea of market prices for new cars.
If you are looking for a used car, below are some resources to help you:
You have three options:
You (or the seller) must collect different documents before going to the Registro Civil or a notary to make the transfer of ownership, which allows you to legally become the owner of the car.
As a buyer, you must bring:
The seller brings the same identity documents, as well as the documents of the vehicle, which are:
Let’s look at the transfer procedure wen you buy a used car in Chile, which is the most common case.
To be noted: When you buy a new vehicle, the process is almost the same. The only difference is that you need to register the vehicle. Indeed, in Chile, when you buy a new car, it does not have a license plate. The dealer usually takes care of the administrative process to register the car and get the plate. You can also negotiate with the dealer for him to cover registration fees.
If you buy a car from an individual, you have two options to transfer ownership:
Transfer of ownership in the civil register
This solution is the least expensive and is recommended for a transfer between individuals. You immediately get the padrón of the vehicle. However, both parties must be present, arrive early and wait several hours, so be sure to have all the documents with you.
Transfer of ownership via a notarized purchase / sale contract
This solution is faster, and each party (buyer/seller) can sign separately at the notary. Yet, it is more expensive because notary fees are added on top of the civil register fees.
The notary draws up the purchase / sale contract (compraventa), which the buyer and the seller sign.
You can drive the vehicle legally with this document, while waiting for the padrón. The notary then sends the contract to the civil register, in order to start the transfer of ownership process. A week later, you go back to the notary to get the Impuesto Transferencias Vehiculos Particulares, which is much more official than the compraventa under the law and proves that the transfer is in progress.
About three weeks after your first visit to the notary, the padrón is sent to you by mail and you can then pick up copies in any civil register. Once you have this document, you are officially the owner of the vehicle!
Furthermore, if you buy the vehicle to leave the country and travel in the continent, you will need one or two additional documents depending on the case:
An authorization signed by the previous owner if you want to leave the country before getting the padrón. You can ask the notary to draw up this document, allowing you to cross the border with a car that is not in your name yet.
A declaración jurada (declaration on honor), signed by yourself, in which you declare that you will return the car to Chile within 180 days. This document is necessary to leave the country if you are in Chile with a tourist visa and bought a car with a temporary RUT, to make a trip in the Latin America. This document allows foreigners to cross a border with a Chilean vehicle.
You should have at least two originals and several photocopies of these documents because some customs officers ask to keep a copy. You may also need a copy of the law ( the relevant section is 17.2. 3), which you can show at the border if there is a problem.
However, these authorizations do not apply to Peru because the authorities want to prevent cars stolen in Chile from being brought to Peru, which has long been the case. If you want to go to Peru, you will have to go through Bolivia first.
If you want to leave the country, you also need a compulsory international liability insurance (Seguro Internacional de Responsabilidad Civil). It does not cost much and can be contracted from small brokers in cities near the border.
Make sure you have a picture of each document or a digital copy in your mailbox or any online space, so as not to be blocked if you ever lose your papers.
Before buying a car in Chile, make sure you do a thorough technical control, to avoid any unpleasant surprises later.
Furthermore, you should check the administrative documents of the vehicle before any purchase. Indeed, in Chile:
A restriction on ownership title (limitación al dominio) is a registration made in the vehicles’ register, which removes the right of the owner to sell his vehicle. In general, it happens when the owner has taken out a credit to buy his vehicle. The bank mortgages the vehicle to be able to recuperate the bank loan in case of the owner does not pay. As long as the credit is not paid, the restriction applies. If the owner has other debts to pay, a court may have put an embargo on the vehicle.
In both cases, the vehicle cannot be officially transferred to another owner at the civil register level, which means you can’t get the padrón stating you are the new owner. However, it may very well be sold to you using a buy/sell contract signed at the notary. If you are not aware of this, you may find yourself having to pay the seller’s car loan balance after having already paid for the car…
If you are in this situation, but still want to buy the car, you must negotiate with the seller on how to resolve the problem: either the seller pays its loan before making the transfer of ownership and the bank lifts the restriction (normal case), or you can pay the debt in exchange for a discount on the price of the car. Be aware that the vehicle will not be in your name until the restriction is lifted. In this case, you must make a contract before a notary to formalize the transaction, and then contact the bank to pay the balance.
Check that the car is in good condition and the papers are up to date. Autofact has a test of 19 questions that reviews all the aspects to check (click here for the checklist).
## Buying a car in Chile: payment
Regarding the payment of your car, talk to the seller to find an agreement. You have several options:
Once you own the car, you must update the vehicle documents once a year. Make sure you do it because it is illegal to drive a car whose documents papers are not up to date and you may have problems if you want to sell it later. To do so, follow these three steps:
Technical control (revisión técnica): you can make an appointment here. Technical control costs vary depending on the type of vehicle you have and the garage you choose. The last digit of your license plate number indicates the month during which you have priority for technical control. If you have forgotten it, you can do it in December or March, which are the months allowing all vehicles to do their technical control.
Insurance: you must renew your seguro obligatorio (SOAP). You can compare prices online on insurance and bank sites, because for the same vehicle, it varies a lot. Search “comprar SOAP” in Google.
Circulation permit: you must renew your circulation permit every year in March. You can do it online by following this link, or on the website of most municipalities. Otherwise, you will see small tents popping up all over the city in March, where you can go and pay for the permit (take your padrón with you and the certificates of technical control and insurance).
If you have general questions about the purchase / sale of a vehicle that we did not address in this article, or if you have suggestions or comments to improve it, do not hesitate to contact us.
Likewise, if you need assistance in obtaining a temporary RUT from the Servicio de Impuestos Internos, have specific questions regarding your situation, or if you need to check the vehicle documents before buying it, we can help you. However, please note that these are paid services.
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