Selling Your US Vehicle Outside of the US: A Short Guide for a Smooth International Transfer
Transferring ownership of a vehicle while exploring Mexico, Central America, or South America can be a complex process, especially for those traveling on a Temporary Import Permit (TIP).
Here's a breakdown of what travelers with a US-titled vehicle need to know to smoothly transition ownership, deal with TIPs, and minimize hassle throughout the process.
The Challenge of Inter-Country Transfers
If you’re driving in Mexico, or any country in Central or South America, in a vehicle with US paperwork, your vehicle has most likely entered the country on a TIP. That TIP references details about the vehicle (e.g., VIN, year, make, model), its registration (e.g., license plate number, registration number), and its owner (e.g., first and last name, passport number).
If you sell your vehicle, and your buyer puts his own plates on the vehicle, the vehicle’s registration details will no longer match those on the TIP. This may expose the vehicle to confiscation in the event of a traffic stop or border crossing.
The Challenge: A vehicle’s TIP should always match the vehicle and its registration details. How can you transfer ownership of a vehicle to a buyer without causing a mismatch between the vehicle's ownership paperwork and its TIP?
Check the Legality of Selling a Foreign Vehicle in the Country
In some countries, selling a foreign vehicle without importing it is against the law.
These laws, and their enforcement, can change with little notice, so we are unable to provide a comprehensive and up-to-date list here, unfortunately.
Key Takeaway: Check local vehicle sale laws before selling a foreign vehicle in any country.
The Importance of a "Poder" Document
In Latin American countries, a vehicle owner can authorize another person to drive a vehicle with a poder (power of attorney).
Please note: the poder itself does not transfer ownership of the vehicle. It simply authorizes another person to drive the vehicle.
In the case of a vehicle sale, the seller uses a poder to authorize the buyer to drive the vehicle with its current plates and registration in order to keep those aligned with the TIP.
Key Takeaway: authorizing your vehicle’s buyer to drive with its current plates and registration means those items match the vehicle’s TIP.
Notarization and Apostille
Each country has its own rules and regulations relating to poders. Some countries require them to be notarized, and others require poders to be notarized and apostilled.
Key Takeaway: check local rules and regulations to see if your poder needs authentication, such as notarization or apostille.
Cancelling the Seller’s TIP, Getting the Buyer’s TIP
A Temporary Import Permit is usually cancelled when the vehicle leaves the country that issued the TIP.
Most border crossings have a “no-man’s-land,” a space between the exit point of one country and the entry point of the next. At some border crossings, this space is 100 meters or less; others are several kilometers wide.
When a vehicle is in no-man’s-land, it has no TIP - this is the opportunity for the vehicle’s buyer to switch the plates and registration document to his own.
When your vehicle’s buyer enters the next country, he or she should obtain a TIP in that country with his or her own plates and registration, and continue his or her travels.
(2) the buyer exits country A, cancels the seller's TIP, and swaps his plates onto the vehicle; and
(3) the buyer continues traveling on the buyer's documentation.
Key Takeaway: Your vehicle’s buyer should cancel your TIP upon exiting the country in which the purchase took place, swap plates in no-man’s-land, and obtain a TIP in the next country on his own license plates and registration documents.
Final Thoughts
Navigating ownership transfers of a US-titled vehicle outside of the United States can be a bit tricky, but with proper planning and a bit of knowledge of local rules and regulations, it can be done relatively easily.
Just remember:
- A TIP should always match the vehicle and its registration details;
- Check local laws before buying selling a foreign vehicle in any country;
- The buyer will likely have to drive with the seller’s plates and documents for a time under a poder granted by the seller, and that poder should be authenticated under the laws of the country in which it was granted;
- The buyer will swap plates in the no-man’s-land area of a border crossing, and continue his or her travels with his or her own plates, registrations, and TIPs.
