Can I Take My Financed Car to Mexico?
Understand the specific authorizations and preparations needed to drive your financed car into Mexico safely and legally. Navigate international rules.
Taking a financed vehicle into Mexico requires preparation and adherence to specific regulations. The process involves securing permissions, understanding import laws, obtaining specialized insurance, and navigating border procedures.
Obtaining Lender Permission
The first step for individuals with a financed vehicle is to obtain explicit permission from the lienholder, typically the bank or financial institution. Since the lender maintains a legal ownership interest until the loan is repaid, their consent is mandatory for international travel. Without this authorization, taking the vehicle into Mexico could violate the loan agreement and lead to financial and legal repercussions.
Contact the lender’s customer service or international travel department. Provide specific trip details: Vehicle Identification Number (VIN), car’s make, model, year, planned travel dates, and destinations in Mexico. State the purpose of your travel, such as tourism.
The lender will issue a formal letter of permission, which should be notarized. This document proves authorization to temporarily import the vehicle. Some lenders may impose additional requirements, such as specific insurance coverage or a firm return date for the vehicle.
Begin this process 7 to 10 days before your travel date. Some financial institutions process requests quickly, while others take several days. Having the physical, notarized letter is essential for demonstrating authorization at the border.
Understanding Mexican Vehicle Import Requirements
After securing lender permission, understand Mexico’s Temporary Import Permit (TIP) requirements. The TIP, issued by Banjercito, allows a foreign-plated vehicle to temporarily enter and be driven within Mexico. This permit is required for travel beyond designated “free zones” near the border.
To apply for a TIP, you need a valid passport or passport card, a Mexican Tourist Card (FMM), and your current vehicle registration. For financed vehicles, the notarized lender permission letter proves authorization. A valid driver’s license is also required.
The TIP can be obtained online via the Banjercito website, which reduces border waiting times. Online applications should be completed 10 to 60 days before entry. Alternatively, apply in person at Banjercito offices at major border crossings or Mexican consulates in the U.S.
A refundable deposit, typically $200 to $400 USD depending on the vehicle’s model year, is part of the TIP process. This deposit, plus a non-refundable administrative fee (around $45 to $51 USD), can be paid with a non-Mexican credit card or cash at the border. The deposit is returned when the TIP is canceled upon exiting Mexico.
Securing Mexican Auto Insurance
Proper Mexican auto insurance is mandatory for all foreign vehicles driven in Mexico. Mexican law mandates liability insurance issued by a Mexican company. A standard U.S. auto insurance policy is insufficient, as these policies are not recognized for liability coverage in Mexico.
Even a U.S. policy’s “Mexico endorsement” typically does not meet Mexico’s legal liability requirements. Mexican authorities expect a policy from a local provider. Driving without valid Mexican liability insurance can lead to penalties, including fines, vehicle impoundment, and detention.
While liability coverage is the legal minimum, consider purchasing additional coverage, especially for a financed vehicle. Options like collision, comprehensive, and medical payments coverage provide broader protection. These expanded policies often align with lender requirements for international travel.
Mexican auto insurance can be purchased online from specialized providers before your trip for better rates. Policies are also available at border town offices, but online purchase allows more time to review options. Provide your vehicle’s VIN, car details, and driver’s license information when purchasing.
Navigating Border Crossing Procedures
Navigating the border crossing into Mexico involves sequential steps. At the border, the first stop is typically an immigration checkpoint. Each traveler must present their valid passport or passport card and obtain or validate their Mexican Tourist Card (FMM).
After immigration, visit the Banjercito office, usually near customs. Here, your Temporary Import Permit (TIP) will be processed or validated. Present your documents: lender’s permission letter, vehicle registration, and FMM. Pay the TIP fee and deposit; a holographic sticker will be affixed to your windshield.
After Banjercito, vehicles may undergo a customs inspection, from a quick check to a thorough one. Keep all original documents—FMM, lender’s letter, TIP, and Mexican auto insurance policy—accessible throughout your trip, as authorities may request them.
When returning to the United States, cancel the TIP to reclaim your deposit and avoid future issues. This must be done at a Banjercito office at a Mexican border crossing before re-entering the U.S. Present your vehicle and the TIP sticker for verification and removal. Failure to cancel forfeits your deposit and could prevent future permits.