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Tucsonduner
Newbie
Posts: 12
Registered: 1-26-2016
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Financed vehicles in Mexico
From past experience, SFandH is correct. Depending on your lien holder, you may need a letter from them allowing the vehicle, trailer, etc, to be
taken into a foreign country.
Bajabound has an excellent article describing the steps needed.
https://www.bajabound.com/before/permits/lienholders.php
Contact you finance company to be sure. I had BofA for a travel trailer and was asked for the letter at the border. You never know when or if someone
will ask for it. Kinda like a FMM.
Many times crossing, only been asked the one time.
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Bob and Susan
Elite Nomad
Posts: 8813
Registered: 8-20-2003
Location: Mulege BCS on the BAY
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Mood: Full Time Residents
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Quote: Originally posted by SFandH  |
"It is also important to note that many companies will not allow you to travel in Mexico with your financed vehicle for a period longer than 30
days."
https://www.bajabound.com/before/permits/lienholders.php
This page has a lot of info. Folks with financed cars should read it. It contains information specific to the various large lending institutions.
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If a vehicle is financed, then it is also subject to a loan agreement that was originally signed by you. If you are still making payments, or if
there is a lien holder listed on your vehicle registration, then the lender also maintains some ownership of the vehicle. Because the lender maintains
a financial interest in the vehicle, they also legally have a say in whether or not you can take the vehicle outside of the country.
https://www.mexpro.com/blog/driving-financed-vehicles-mexico
[Edited on 2-13-2016 by SFandH] |
again these are just things people make up...for their companies benefit
show me the written law that states a loan company can tell me what to do with my registered car or truck after I purchase it...
if they could... they would never let you take it off-road...or launch a boat in salt water...or drive it in the snow
loan companies only have "recovery rights" to the amount ($$$) of the loan...NOT the use of the car or truck
they make up these "rules" so they can "recover" the car or truck when you fail to make the payments...that's it...if its in mexico they cannot
"recover" it
make the payments...insure it correctly and you are good to go
again if you think "they" can tell where you can travel...
show us the law and the source
just because its written on the internet doesn't make it true
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TMW
Select Nomad
Posts: 10659
Registered: 9-1-2003
Location: Bakersfield, CA
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Since the loan company hold the title don't they have the right to say whether you can take it out of the US. Maybe someone should call Handle on the
Law about this. Of course he may say just go.
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Bob and Susan
Elite Nomad
Posts: 8813
Registered: 8-20-2003
Location: Mulege BCS on the BAY
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Mood: Full Time Residents
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| Quote: Originally posted by TMW | | Since the loan company hold the title don't they have the right to say whether you can take it out of the US... |
they only hold a lien on the title...that's the difference
as long as you pay on time and insure so the lien holder is covered...you are good to go
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Phil S
Super Nomad
Posts: 1205
Registered: 10-28-2003
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Mood: After 34 years. Still in love w/ my wife
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My knowledge of property casualty insurance days of the 70's didn't have "gap" insurance. Can someone tell me where you can buy it and approx. how
much it would cost if I needed say, $30,000.00 gap insurance. Ex: Buy a $70,000.00 vehicle. Drive it off the lot. It might be only worth $40,000.00
during that next 12 months. So to be fully insured, I'd like to buy 'gap' insurance. ; Someone help me out here. And anyone (Nomad) have this kind
of coverage now?
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Bob and Susan
Elite Nomad
Posts: 8813
Registered: 8-20-2003
Location: Mulege BCS on the BAY
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Mood: Full Time Residents
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here is information...very common these days
http://www.carsdirect.com/car-insurance/the-4-best-gap-auto-...
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mjs
Nomad
Posts: 329
Registered: 2-20-2013
Location: Off grid in San Felipe
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| Quote: Originally posted by Bob and Susan | | Quote: Originally posted by SFandH |
"It is also important to note that many companies will not allow you to travel in Mexico with your financed vehicle for a period longer than 30
days."
https://www.bajabound.com/before/permits/lienholders.php
This page has a lot of info. Folks with financed cars should read it. It contains information specific to the various large lending institutions.
----------------------------------
If a vehicle is financed, then it is also subject to a loan agreement that was originally signed by you. If you are still making payments, or if
there is a lien holder listed on your vehicle registration, then the lender also maintains some ownership of the vehicle. Because the lender maintains
a financial interest in the vehicle, they also legally have a say in whether or not you can take the vehicle outside of the country.
https://www.mexpro.com/blog/driving-financed-vehicles-mexico
[Edited on 2-13-2016 by SFandH] |
again these are just things people make up...for their companies benefit
show me the written law that states a loan company can tell me what to do with my registered car or truck after I purchase it...
if they could... they would never let you take it off-road...or launch a boat in salt water...or drive it in the snow
loan companies only have "recovery rights" to the amount ($$$) of the loan...NOT the use of the car or truck
they make up these "rules" so they can "recover" the car or truck when you fail to make the payments...that's it...if its in mexico they cannot
"recover" it
make the payments...insure it correctly and you are good to go
again if you think "they" can tell where you can travel...
show us the law and the source
just because its written on the internet doesn't make it true
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There is no law, just as there is no law that requires a bank to loan you money to buy a vehicle. The "source" is the loan documents.
A loan agreement is a commercial contract between two parties. The bank agrees to loan you money (in this case to purchase a vehicle) and you agree
to repay the money and abide by the terms of the contract. If the contract says you can't drive out of the USA and you agreed to it (you signed the
contract) then that's it. Drive out of the USA and you have breached the terms of the contract. If it's 30 days then it's 30 days. If no time limit
then no limit. It is whatever is written in the loan documents. If the bank finds out then they can pursue whatever remedies are available to them in
the contract. And most contracts would probably have a clause for them to demand immediate payment in full.
It's not written on the internet, the OP should carefully read his/her loan agreement. Preferably before they signed it. That's where it is written.
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Bob and Susan
Elite Nomad
Posts: 8813
Registered: 8-20-2003
Location: Mulege BCS on the BAY
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the small print...
now i'm wondering how many people have EVER been asked to "pay up" because they took the truck south...when they make the payments, register, smog and
insure the truck correctly???
[Edited on 2-14-2016 by Bob and Susan]
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bajatrailrider
Super Nomad
Posts: 2479
Registered: 1-24-2015
Location: Mexico
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Mood: Happy
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In 2012 my Toyota pre runner.Had 10 grand of body damage.The Mexican INS company never asked,for owner ship papers.They fixed the truck,did a good
job.End of story,any truck I buy.No one will tell me where I can go with it.
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David K
Honored Nomad
Posts: 65257
Registered: 8-30-2002
Location: San Diego County
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Mood: Have Baja Fever
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Yup, the BUYER has rights! This is not East Germany before unification, or Cuba or North Korea!
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mtgoat666
Select Nomad
Posts: 19774
Registered: 9-16-2006
Location: San Diego
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Mood: Hot n spicy
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If you don't like the loan contract then pay cash.
If you can't afford to pay cash, perhaps you should buy a less expensive vehicle.
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David K
Honored Nomad
Posts: 65257
Registered: 8-30-2002
Location: San Diego County
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Mood: Have Baja Fever
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You must really like those banks to surrender to their unconstitutional demands? Are you a 1%'er? Buyers have rights... power to the people!
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mtgoat666
Select Nomad
Posts: 19774
Registered: 9-16-2006
Location: San Diego
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Mood: Hot n spicy
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| Quote: Originally posted by David K | You must really like those banks to surrender to their unconstitutional demands? Are you a 1%'er? Buyers have rights... power to the people!
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If you don't like the contract terms, then don't enter into the contract!
I am unaware of typical auto loan contract terms being "unconstitutional."
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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This is not a Constitutional question per se, it is more an issue subject to contract law. mjs is absolutely, positively, unequivocally correct in
pointing this out.
Lenders have a right via the lending contract to protect their security to the loan. Lenders of real estate and lenders for construction loans do it
all the time, every day, in every such loan contract...been doing it for decades if not centuries.
I mean, would you loan money secured by a vehicle if you had no way to legally repossess the vehicle if loan payments stopped coming in?
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bajatrailrider
Super Nomad
Posts: 2479
Registered: 1-24-2015
Location: Mexico
Member Is Offline
Mood: Happy
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| Quote: Originally posted by mtgoat666 |
If you don't like the loan contract then pay cash.
If you can't afford to pay cash, perhaps you should buy a less expensive vehicle. |
The last 6 new trucks
I did pay cash,The wife's she put on payments.She never looked at contract,We don't care.Its Insured in both country's.Simply put again,we drive where
we want.Either cash buy or loan.If she pays on it,nobody has the right to tell us where we can go.
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AKgringo
Elite Nomad
Posts: 6189
Registered: 9-20-2014
Location: Anchorage, AK (no mas!)
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Trail rider, I agree with your point of view 100%! That is why if I ever finance another vehicle, I would refuse to sign any contract that had a
clause restricting where I could drive it.
It has been pointed out that this is a matter of contract law, and being on the wrong side of it could cost you big time! Even winning a dispute in
court would be an experience I would not want to have to go through.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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Sweetwater
Senior Nomad
Posts: 915
Registered: 11-26-2010
Member Is Offline
Mood: chilly today hot tomale
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| Quote: Originally posted by mtgoat666 |
If you don't like the loan contract then pay cash.
If you can't afford to pay cash, perhaps you should buy a less expensive vehicle. |
There is a distinct difference between legislated laws and contract law. When you take out a loan (lien) on anything, the contract you sign gives the
lien holder certain rights on the property. That contract defines each parties rights and responsibilities. If you signed a contract that allows the
lien holder to limit the national boundaries of a vehicle's use, you must abide by that contract. What is in question here is how Mexico authorities
and insurance companies might handle a vehicle with another nation's lien holder since that lien holder of a vehicle does hold the title as well.
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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bajatrailrider
Super Nomad
Posts: 2479
Registered: 1-24-2015
Location: Mexico
Member Is Offline
Mood: Happy
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| Quote: Originally posted by AKgringo | Trail rider, I agree with your point of view 100%! That is why if I ever finance another vehicle, I would refuse to sign any contract that had a
clause restricting where I could drive it.
It has been pointed out that this is a matter of contract law, and being on the wrong side of it could cost you big time! Even winning a dispute in
court would be an experience I would not want to have to go through. |
Since the car is insured in
Mexico,full coverage.Me and lender are covered.Example gets totaled,lender is covered.I dont worry about the small stuff.
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SFandH
Elite Nomad
Posts: 7362
Registered: 8-5-2011
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| Quote: Originally posted by Sweetwater |
There is a distinct difference between legislated laws and contract law. When you take out a loan (lien) on anything, the contract you sign gives the
lien holder certain rights on the property. That contract defines each parties rights and responsibilities. If you signed a contract that allows the
lien holder to limit the national boundaries of a vehicle's use, you must abide by that contract. |
I agree with the above and many thanks to the original poster for making us aware of the situation. Every time I look at my 2003 F-250 I think it's
time for a new one, which will be financed.
I wonder if all auto loan contracts have this kind of limitation in the terms and conditions sections.
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