Can I Ship a Financed Car to Puerto Rico?

Shipping a financed car to Puerto Rico involves coordinated efforts between the vehicle owner, the lender, and various regulatory bodies. The process requires adherence to specific regulations for both export from the United States mainland and import into Puerto Rico. Understanding these requirements beforehand is beneficial for a streamlined experience.

Lender Authorization and Financial Considerations

Before shipping a financed vehicle to Puerto Rico, consult your loan agreement. These agreements often contain specific clauses regarding vehicle relocation, particularly when moving outside the continental United States. Relocating a financed vehicle without the lender’s explicit consent can lead to penalties or trigger default conditions, as the vehicle serves as collateral.

Obtain formal permission from the lienholder prior to initiating any shipping steps. Lenders typically require a written, often notarized, letter authorizing the vehicle’s transport to Puerto Rico, confirming their approval for the relocation of their collateral. This official documentation is a requirement for the shipping process.

The lender may request detailed information, such as the precise destination address in Puerto Rico, the anticipated duration of the vehicle’s stay, and the purpose of the relocation. They might also stipulate conditions, including proof of continuous auto insurance coverage valid in Puerto Rico and updated contact details for the borrower. Some financial institutions might deny authorization if they perceive an elevated risk.

Verify that your existing auto insurance policy will cover the vehicle throughout its transit and once it is registered in Puerto Rico. Most personal auto insurance policies do not extend coverage during commercial transport, meaning coverage may temporarily suspend when the vehicle is loaded onto a shipping carrier. Contact your insurance provider to confirm coverage and consider additional marine insurance from the shipping company for potential damages during the voyage.

Preparing Your Vehicle for Export

To export a vehicle from the U.S. mainland, specific documentation is required. This includes the original vehicle title, or a formal lienholder authorization letter if the vehicle is financed. A current vehicle registration, a valid government-issued photo identification, such as a driver’s license or passport, and a bill of sale or dealer invoice are also necessary to establish ownership and facilitate customs clearance.

Physical preparation of the vehicle is important for a smooth export process. The car must be thoroughly cleaned, inside and out, to allow for inspection and to prevent the transport of dirt, pests, or foreign plant material, complying with import regulations. All personal belongings must be removed from the vehicle, as shipping companies prohibit their presence due to customs regulations and liability. The fuel tank should contain no more than a quarter-full tank of gas for safety and weight management during transit.

Deactivate alarm systems to prevent accidental activation. Detach any removable accessories like roof racks or spoilers to avoid damage during shipment. Take detailed photos of the vehicle’s condition from all angles before handing it over to the shipping company; this visual record can aid insurance claims if issues arise.

Select a reputable vehicle shipping company with experience in Puerto Rico shipments. Factors to consider include the company’s insurance coverage, which should extend beyond basic cargo protection, and their adherence to all regulatory requirements for international shipping. Obtain detailed quotes from several providers for a comprehensive comparison of services and costs.

The Vehicle Shipping Process

Once a shipping company is selected, confirm shipment dates and identify drop-off locations, typically major ports like Jacksonville, Florida, or Eddystone, Pennsylvania. Some companies offer door-to-port or door-to-door services, providing vehicle pickup directly from your location.

At the designated drop-off point, the shipping company will inspect the vehicle, documenting its condition prior to transit. You will then sign a bill of lading, a contractual agreement outlining shipment terms, and provide all necessary documents, such as the original title and any required lienholder authorization. Retain a copy of this inspection report for your records.

Most auto transport companies offer tracking services, enabling you to monitor your vehicle’s journey. Transit times to Puerto Rico range from 5 to 10 days from East Coast ports, extending to 20-30 days from the West Coast, depending on the route and method. The shipping company should notify you of any potential delays.

Upon the vehicle’s arrival at the designated port in Puerto Rico, typically San Juan, you will receive notification for pick-up. The pick-up process requires presenting valid identification and documents, including the bill of lading and the original vehicle title. Retrieve the vehicle promptly, as storage fees may accrue if not collected within a few days.

Puerto Rico Vehicle Import and Registration

To import and register a vehicle in Puerto Rico, specific documents are required by local authorities. These include the original vehicle title, or comprehensive documentation of the lienholder’s information if the car is still financed. Other essential items include the bill of lading from the shipping company, a valid government-issued identification, your Social Security card, and proof of insurance valid on the island. Necessary forms from the Puerto Rico Department of Transportation and Public Works (DTOP) will also be required and can be obtained at their offices.

Vehicles imported into Puerto Rico are subject to an excise tax, commonly known as “arbitrios.” This tax is calculated based on the vehicle’s market value, make, model, and year, and can vary from approximately 4% of the determined value upwards, with a minimum tax amount. An online tool available on the Puerto Rico Treasury Department (Hacienda) SURI website can provide an estimated calculation of this tax liability. Payment of this excise tax is mandatory before the vehicle can be released from the port and can often be completed through the online portal or at a Hacienda office.

A mandatory vehicle inspection is required for all imported used vehicles before registration can be authorized. This inspection, conducted at authorized garages, assesses the vehicle’s safety features, such as brakes, lights, and tires, and includes an emissions test for newer models. For the inspection, you will need to present your vehicle title, proof of Puerto Rico insurance, and personal identification.

After successfully clearing customs, paying the excise tax, and passing the required inspection, the final steps involve registering the vehicle with the DTOP. This process necessitates submitting all approved documents, paying the applicable registration fees, which are typically around $300 annually, and receiving the Puerto Rico license plates and registration sticker (marbete). Prompt completion of the registration is advisable, as driving an unregistered vehicle in Puerto Rico can result in fines and potential license suspension.