Whether you're relocating to Panama, investing in property, or simply need wheels to explore your new home, buying a used car is often the most practical choice. The process is straightforward – but only if you understand the "traspaso vehicular" (transfer of ownership) process. This guide walks you through every step.
Key Advantages of Buying a Used Car in Panama
No Residency Required
Tourists and non-residents can buy, own, and sell vehicles in Panama using only their passport.
Lower Costs
Used cars avoid the steep depreciation of new vehicles, and maintenance/parts are affordable
Parts Availability
Popular brands have readily available spare parts and skilled mechanics nationwide.
Wide Selection
Thriving second-hand market with listings on Encuentra24.com and dealerships across the country.
Popular Car Brands in Panama
- Toyota
- Kia / Hyundai
- Suzuki
- Honda
- Nissan
- Chevrolet
- Mitsubishi
Reliability, parts availability, resale value
Affordable, modern features, growing dealer network
Compact, fuel-efficient, ideal for city driving
Premium option with excellent engineering
Wide range of sedans and SUVs
American brand with strong local presence
Durable SUVs and trucks
Pro Tip: Spare parts for these brands are widely available across Panama, and you'll easily find skilled mechanics capable of maintaining and repairing these vehicles
Where to Find Used Cars
The go-to website in Panama. Largest selection, direct from owners and dealers
The go-to website in Panama. Largest selection, direct from owners and dealers
Dealerships
Higher prices but often include warranties and handling the transfer process.
Step-by-Step Guide to Buying a Used Car
Step 1: Find the Right Car
Once you've found a vehicle and agreed on price with the seller, don't hand over money yet. The transfer must be completed first.
Step 2: Verify the Vehicle
Before proceeding, verify: No outstanding fines or debts with the Municipality (seller must provide proof) . Valid inspection certificate (Revisado) – must be up-to-date. Valid insurance policy – mandatory in Panama . No liens or legal issues – check with the Registro Público.
Step 3: Gather Required Documents
All documents must be presented in original form. For Panama City, copies must be notarized; other Municipalities typically accept photocopies .
Step 4: Visit the Municipality
The transfer must be completed at the Municipality where the vehicle is registered. If registered in Panama City, the process happens there regardless of where you live
Step 5: Pay Transfer Fees & Taxes
Account Approval & Activation: Once approved, make your initial deposit and receive account details, debit card, and online banking access.
Step 6: Complete the Process
Account Approval & Activation: Once approved, make your initial deposit and receive account details, debit card, and online banking access.
Visit the Correct Municipality
The transfer must be done at the Municipality where the car is registered (e.g., Panama City transfers must occur there, regardless of where you live).
Buyer and seller meet at the Municipality with all required documents.
Critical Rule: Complete the transfer paperwork before making any payment (cash or cashier’s check). This protects both parties from future liability.
Complete the Vehicle Transfer Card (Tarjeta de Traspaso)
Fill out the official transfer request form with:
Full names, addresses, phone numbers, and ID numbers of both buyer and seller
Vehicle details: brand, model, year, license plate, VIN, and engine number
Both parties must sign the form.
For Panama City: This step must be done digitally (online system).
For other Municipalities: Paper form completed in person.
Pay Transfer Fees
| Fee | Amount | Notes |
|---|---|---|
| Municipality Transfer Fee | $50.00 | Payable to the Municipality |
| Additional Costs | Varies | Vehicle insurance, plate processing, inspection (if expiring) |
Who Pays What?
Transfer fee ($50): Split 50/50 between buyer and seller (recommended practice).
License plate renewal / inspection (if expiring): Seller’s responsibility.
Pending debts or fines: Seller’s responsibility – must be paid before transfer.
Finalize Ownership
After processing (typically 1-3 business days), you’ll receive the new Registro Único Vehicular in your name.
License plates remain unchanged.
Insurance is mandatory. Keep a printed copy of your valid policy in the vehicle at all times.
Basic insurance policies start at approximately $100 per year.