Buying a used car here can be a nightmare

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Readers requested this article. Some helped write it, sending in accounts of their experiences trying to buy a used car in Costa Rica.  Most recount the endeavor as a terror.  One couple has almost given up and prefer the bus to dealing with used car salespeople.  They may import their old vehicle from the States, paying more in the process because they know the car and do not want any more surprises.

The biggest problem is the twisted tongues of some sellers.   Little that some state about a used car comes close to the truth, especially the mileage.

A perceptive potential buyer ordered the 30-day unlimited reports package from Carfax.com for $24.99.  Carfax.com is a trusted provider of vehicle history information.  Using the unique 17-character vehicle identification number (VIN) found on vehicle dashboards and title documents, the firm can instantly generate a detailed vehicle history report on any used car or light truck in the United States and Canada.  Another such service is Autocheck.com.  The services and costs are very similar in price.

Then the buyers hit the streets to buy a small car.

Unbelievable, almost every car checked had the mileage turned back.  Others had been in a major accident, a fire, or flood.  The National Automobile Dealers Association estimates that Hurricane Katrina alone may have damaged as many as 400,000 cars.

Investors have a choice in company structure

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There are six different types of companies in Costa Rica.  Most people are only familiar with one or two, the most common types like sociedad anónimas and S.R.L.s.  In these times of changing tax regulations, everyone, business people as well as individuals, should know the differences between the company structures available under the commercial law.

The most common company structure in Costa Rica is a sociedad anónima, which is equal to a standard corporation in the United States and other parts of the world.

What is a corporation?  By definition, a corporation is a legal entity engaged in a business activity.   A corporation has its rights, privileges, and liabilities distinct from those of the individuals who own or manage them.  A corporation can acquire assets, enter into contracts, sue or be sued, pay taxes and take tax deductions in its name. Corporations issue shares of stock to individuals who supply ownership capital.  A corporation is a desirable organization for a business entity for many reasons, including tax savings, asset, and lawsuit protection.  The law considers a corporation to be a separate legal person. 

Sociedad anónimas, referred to as S.A.s, have a constitution or corporate charter, four directors, a president, secretary, treasurer, and a fiscal, stock certificates representing stockholder ownership and six legal books.