In December 2015, 22% of the vehicles circulating in the countries of the region were between 1 and 5 years old, and 19% were between 6 and 10 years old.
The report "Vehicular Fleet in Central America in 2015," compiled by the Business Intelligence unit at CentralAmericaData com details the age of vehicles circulating in the countries in Central America.
Of all vehicles circulating in the country at the end of 2015, 63% were automobiles, 19% motorcycles, 13% light duty vehicles and 3% heavy load vehicles.
Figures from the report "Vehicular Fleet in Central America" prepared by the Business Intelligence unit at CentralAmericaData.com, indicate that 1.3 million vehicles were in circulation up to December 2015, of which 63% were cars.
In the first five months of the year nearly 36 thousand vehicles came into the country, 26% more than in the same period in 2015 and 24% more motorcycles.
Of the 35,690 vehicles that entered the country between January and May 2016, 72% were new units, and the rest were used.In the same period, the country imported 32 thousand new motorcycles.
In the past five years used cars lost 24% of market share due to improvements made in installment terms and interest on loans for buying new vehicles.
The market for used vehicles in Costa Rica has seen five years of decline, lacking attractive incentives for imports and being at a competitive disadvantage to the new vehicles market.
Although it has not yet reached pre-crisis 2008 figures, imports of vehicles continue to grow, with 47,750 units imported in the first eight months of the year.
The Association of Importers of Vehicles and Equipment reported the entry between January and August of 47,750 units, of which 26,561 correspond to new cars and the remaining 21,190 were used ones.
In 2014, 84 000 new and used vehicles were sold in Guatemala, Costa Rica and Nicaragua alone, and it is expected that 2015 will close with an annual growth of nearly 10% across the region.
While the region has generally shown an upward trend in the marketing of vehicles, mainly new ones, the characteristics of each of the countries, particularly with regard to access to bank credit, makes the behavior of the auto market different in each.
The Costa Rican Automotive company has acquired a car dealership in Dallas, bringing the number of subsidiaries of the company operating out of Costa Rica to five.
The new branch in Texas, was born under the brand Atkinson Toyota South Dallas and is dedicated to marketing Toyota and Scion brands of cars. Purdy Motor plans to continue expanding its operations primarily in North America.
Used car importers argue that the Treasury is using the 2015 value of cars as a reference price when establishing the value of used vehicles.
The Costa Rican Chamber of Automotive Companies and deputies from the Libertarian Movement have filed an lawsuit and asked to meet with the Ministry of Finance to complain about the methodology being used to calculate the taxable value of used cars.
After 2013 recorded a decrease of 3.4% compared to 2012, sales of new and used cars from January to September this year increased by 6% compared to the same period last year.
Elfinancierocr.com notes that "... The Association of Importers of Vehicles and Equipment (Aivema) recorded that, in nine months, 27,161 units have been sold, including cars, pick up trucks, sports vehicles, vans and light trucks; 60 different brands in over 26 dealerships. In the same period in 2013, 25,609 units were sold. "
Under pressure from importers the government has lowered taxes for importing used motor vehicles, but diluted the reduction by increasing the notional taxable value.
Car dealers in Costa Rica are asking for the establishment of a new formula for calculating taxes on used vehicles.
Cars between 0-6 years old will incur a 30% selective excise tax with a tax burden of 53%, and those over 6 years old will incur a tax of 48% and have a tax burden of 73%.
From a press release from the Ministry of Finance in Costa Rica:
Sellers of used cars in Costa Rica believe there is discrimination in the way the Ministry of Finance estimates import taxes on cars.
According to Jose Carballo, president of the Costa Rican Automotive Chamber, the industry complains that 52% is charged for new vehicles, while used cars which are over six years old are charged 79%.
The fall in the number of imported used vehicles has continued in the first five months of this year, falling by 40% compared to the same period in 2012.
According to data provided by the Ministry of Finance, the reduction was seen mainly in cars and a little less on vehicles used to transport goods. As for the import of new cars, they were also reduced, going from 17,306 in the first five months of 2012 to 16,425 in the same period in 2013, a reduction of 5%.
Affirming the downward trend of recent years, the number of used cars imported into Costa Rica in 2012 was 30% less than in 2011.
The main reason given for less cars being imported in 2012, only 27,000, 8,100 fewer than in the previous year, was a drop in new car prices following the Japanese crisis.
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