how much you can save with changes in car buying and selling procedures

The Ministry of Justice continues to advance its plan to reduce procedures in the purchase and sale of cars and, with this, reduce the costs currently involved in patenting a new vehicle or registering a transfer of a used one. The new measures will make many steps free that until now were paid.

The announcement was made by Minister Mariano Cúneo Libarona, where he highlighted that these measures seek to “reduce the bureaucracy of the Automotive Registries” and “dismantle the spurious businesses” of these registries that had been operating as “political boxes.”

According to the ministry, “we have decided to digitize the automotive files to speed up the procedures and eliminate the need to transfer documents between the different Registries.” In this way, they claim, $1.3 billion monthly will be saved.

In addition, the issuance of identification cards, license plates, property titles and signature certificates will be subsidized upon their publication in the Official Gazette. In the same way, the cost of transferring a vehicle will be 1%regardless of whether it is a national or imported model.

These measures are added to others that have been applied in the sector, such as the significant reduction in the number of Automotive Property Registries, of which the closure of 136 offices was ordered and the opening of another 12 was stopped.

Until now, the paperwork for the patenting of a 0 km vehicle and the transfers of a used one included a large number of procedures whose costs vary according to the origin of the model, whether it was national or imported.

The required fees They were 1.5% of the total value of the vehicle if it was domestically produced and 2% if the vehicle was imported.. In addition, the issuance of the ID, the payment for the license plate (subsidized since 2016), the tax registration, stamps and provincial taxes had to be included.

Overall, registering a new vehicle could represent 6 to 8 percent of the vehicle’s total value. That is, to put a $25,000,000 car on the street, another $2,000,000 had to be put into paperwork.

Specifically, and pending regulation, the changes announced by the Ministry of Justice will considerably reduce these costs. To begin with, the aliquot of transfer fee becomes 1%without distinguishing the origin of the vehicle.

The license plate would continue to be discounted and the issuance of the ID ($5,290) will become free, as well as the title ($2,580), the tax registration, the domain report and the certification of signatures.

To put it into numbers, we take as an example a transfer from a 2015 Toyota Corolla XEi 1.8 CVTbased in San Isidro, province of Buenos Aires. It was presented by Noelia Torossian on Wednesday, August 28.

With a declared value of 8 million pesos, the total cost of the procedure was $208,208. Taking into account the reduction in the tariff announced by the Government and what will become free, this transfer would cost $118,973, that is, a 42% less.

According to Ms. Torossian (gestoriaintegralonline) a Clarionit is still not clear whether the forms will be subsidized or not. “We are waiting for the publication of the proposed measures in the official bulletin.”

In May, the Government had announced the elimination of the blue card, documentation until then mandatory so that a person can drive a vehicle that was not his or her property.

To this measure was also added the elimination of the expiration of the green card, which was one year, and which remained the only essential vehicle document to be able to circulate legally.

In April, the Government had communicated the elimination of one of the forms necessary for the transfer of a used car. It was the Automotive Transfer Certificate, better known as CETA, by its acronym.

It was a document that in certain circumstances of an operation was required by the Federal Public Revenue Administration (AFIP). That decision did not lower the cost of transferring a used one, since it was free, but it did make the process less cumbersome.