Buying a New Car in Colombia

Information on the paperwork and processes involved when buying a new car in Colombia...

Buying a new vehicle in Colombia has become easier over recent years, due to lower interest rates and a slight drop in car prices following the latest Free Trade Agreement (Tratado de libre comercio) with the USA.

In Colombia new cars are generally purchased from dealerships, and the seller assists the buyer with all the paperwork, including the vehicle registration, and can advise about mandatory insurance (SOAT) and other available insurance options.

After choosing a car the buyer has the option to take out a loan with a financial institution or to buy the vehicle on a lease contract.

Car Loans

Purchasing a vehicle with a car loan (Credito para vehiculos) is a popular option in Colombia and has many advantages for the buyer, as car loans are usually approved quickly. Interest rates for a car loan are generally low and the vehicle can also be purchased with fully comprehensive insurance, which is included in the monthly loan payments.