Friday 26 February 2021

Marchamo, Cash or Zero Interest Financing, What Is The Best?

For some the 2019 Marchamo is a small amount, less than ¢100,000 colones, whiel for others it top ¢500,000, ¢1,000,000 or a lot more. Yes, the amount is relative, yet the decision to finance or use cash can be the same.

The Marchamo is due by every December 31 for vehicles to circulate in the coming year

Every year, by not later than December 31, the owners of vehicles in Costa Rica need to pay the Marchamo – the annual circulation permit for the coming year.

- Advertisement -

Failure to do so, owners are exposed to a ¢52,000 colones fine and/or seizure of the license plate and/or the vehicle itself, which then incurs even larger sums to recover it from the clutches of the Cosevi, the national roads safety council – through the work of the Polica de Transito (Traffic Police).

What makes the amount of the Marchamo expensive, ‘a millionaire sum’ for some, is the property tax on vehicles which represents 70% of the total cost. The tax is based on a percentage of the ‘fiscal value’ determined by the Ministerio de Hacienda (Ministry of Finance), that takes in the model, make and year of the vehicle and depreciation.

What is better, financed or cash?

For many, it has to do how well they hand money and if they have the cash on hand, it may the best to pay it in cash, this because they don’t have to worry about this anymore, not until next November.

- Advertisement -

On the other hand, there is the option to pay with “zero interest rate”. For those who can handle money well, the option can serve to not run out of caah for the year-end and the outlays in January to get the children back to school.

A third option is to finance it (with interest charges) by way of an affiliatation with a solidarity association (union), with interest rates below market. This option allows one to invest the cash at rates higher than the interest paid.

For those who don’t have the money, financing by means of a personal loan, is the only option. Interest rates and terms on the loan are based on personal financial history. The monthly payment has to take into account the personal or family budget.

What is the answer?

Cash. If you have the money and used to paying it in this way, it is the best; You can forget about the Marchamo until next year.

Zero Interest. Imaging yourself facing a ¢1 million plus Marchamo. If you are in this position it means you have a luxury vehicle and with that a above average monthly income. If that is the case and you can manage your money well, this may be your better option.

- Advertisement -

Financing. Of course, you don’t have the money, financing (with interest) is your only option. Not paying the Marchamo on time, waiting for things to improve financially, waiting on a big lump sum coming in, will add interest and late charges by the Cosevi which can and most likely will be much, much higher than the financing cost offered by the banks and financial institution. And if and when you get that money coming in, just pay off your debt.

What’s included the overall cost the Marchamo?

To know the amount you have to pay for the 2019 Marchamo, you can consult:

  • Free by calling 800-MARCHAMO (800-6272-4266)
  • Online at www.ins-cr.com
  • Text message (from a Costa Rica phone) to 1467 with the word marchamo, followed by the plate number

example using the text message option

 

 

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Government begins negotiations with the IMF this January 11

QCOSTARICA - The Government of Carlos Alvarado announced that the negotiation...

Transito seized more than 11,000 pairs of license plates from vehicles during the holidays

QCOSTARICA - The Traffic Police (Policia de Transito) registered, up to...

MOST READ

Legislator criticizes “spectacle” of the Government with vaccines: It is ridiculous to have the President on the airport runway

QCOSTARICA - Legislator Ricardo Benavides lashed out on Tuesday that in the midst of the efforts to advance with the covid-19 vaccines the Government...

Costa Rica extends restrictions of its land borders until April 1

QCOSTARICA - Costa Rica will extend the restrictions of its land borders until April 1, confirmed Casa Presidencial (Government House) on Thursday. As in the...

When Should you Stop Playing Blackjack

The blackjack game is associated with excitement and joy. The players experience great enthusiasm while playing the game because of its great rewards for...

Can you pay your bills by playing baccarat online?

Casino and baccarat is a term of love. Gambling is known to bring a lot of happiness provided your luck supports you, but how...

Despite Covid and Barriers Nicaraguans Migrate to Costa Rica

QCOSTARICA - Restricted borders, increased immigration patrols, limitations in transportation and movement and the pandemic has not deterred Nicaraguan migrants from arriving in Costa...

Costa Rica, Cuba to cooperate in television and radio broadcasting

HQ (Prensa Latina) Costa Rica and Cuba on Friday signed a framework cooperation agreement between the National System of Radio and Television S.A. (SINART)...

Minister Salas: 4 factors influence the drop in new covid-19 cases in Costa Rica

QCOSTARICA - Costa Rica is on the verge its seventh consecutive week with a decrease in new cases of covid-19. Between Saturday (February 20)  and...

Foreigners tried to leave Costa Rica with falsified covid-19 tests

QCOSTARICA - Four foreigners, including two minors, tried to leave Costa Rica using Covid-19 tests with negative results, which were determined to be falsified. The...

4 FREE Project Management Software for Recruiting and Onboarding New Employees

Recruitment is a prolonged process for any organization that consumes both effort and time. Even though almost 82 percent of the recruiters prefer a pre-assessment...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.