Buying a used car in Panama can be a daunting task. In fact, if you don't do it right, it may very well end up being one of the most stressful aspects of relocating here. 

Unfortunately, I know this firsthand. The first used car I purchased here was a lemon, which left me grappling with unexpected challenges and serious stress. In this post, I'll share my trials and errors, as well as some tips, to give you the best shot at a stress-free experience.

Not all dealers will deliver a quality car...

All of the posts on this blog are a testament to the amount of research I did in preparation for coming here. That held true for buying two used cars, too. 

Everything I read and everyone I spoke to supported my choice of dealer, so I felt totally comfortable buying my first car sight unseen before I even arrived here.

Literally the first time I drove the car, it had issues...and they never stopped. Some were minor, the worst one was catastrophic. A whopping $2,500 just for the part (almost 30% of the price of the car), three months to get it, and no clue on the labor. 

Over the next several months (before Ken lived here), the car left me stranded on several occasions. Breaking down is stressful in one's own country, but when you don't have solid contacts yet, the only mechanics you trust enough to work on it are 1-1/2 hours from your house, you don't speak the language, and you don't have alternate transportation or know enough people to give you rides, it's an absolute nightmare. 

It didn't take long to realize I had bought a lemon. 

While the dealer was initially helpful ~ paying for two mechanics to try and diagnosis and fix the problem ~ he ultimately claimed he was not responsible because the problems began after he gave the car to me. (Of course, I begged to differ as, in my humble opinion, if a car has a problem the first time I drive it, the problem most definitely existed before it was dropped off. Plus, I had a super faint memory of the dealer mentioning an issue he was getting fixed when we were negotiating.)

The last time I was stranded on the side of the road for four hours, hoping the tow truck would actually show up (because in Panama, it's entirely possible they won't), I had the brilliant idea to go through the WhatsApp messages I had exchanged with the dealer. 

Validation. Vindication. Whatever you want to call it, it is glorious.

There it was...a message that proved that the catastrophic problem existed before I even arrived in Panama. After the dealer's attorney confirmed that I had a solid case, I was offered 88% of what I paid for the car. 

I snatched it. It could have been SO much worse. 

Saved by an independent car broker...

In my quest to find a hyper-reliable replacement, I turned to a reputable independent car broker whose praises were regularly sung in several of the expat Facebook groups I was in.

When Marc Vargas WhatsApped me photos of a Subaru Forrester and told me the former owner was the service manager at Subaru, I snatched again. Maintenance history doesn't get more solid than that! 

This made up for the fact that I would have to take the car to Panama City (a 6 hour drive) for service and repairs (because no one in the countryside knows how to work on Subarus).

Over the next couple of years, the Subaru delivered. It's performance on our occasionally challenging roads, respectable fuel efficiency, and lack of mechanical issues made it an ideal choice for me.

I loved it so much that a couple of years later I decided to upgrade to a newer Subaru...just to minimize the risk of breakdowns (okay, and to treat myself!). 

I found one myself on Encuentra24, which I was only comfortable with because of my in with the Subaru service manager. One WhatsApp and he confirmed there were no issues whatsoever with the car, all maintenance had been done, and the price was fair. 

6 tips for buying a used car in Panama...

Here are some essential tips for expats buying a used car in Panama that I wish I would have known about before I bought mine:

❶ Get Educated on the Best Cars in Panama

All cars are not created equal here. And, while they may look like it, they are not the same cars as the U.S. The most popular cars here are made by Toyota; everyone can work on them and they have a solid reputation. But, for that reason, you'll pay a premium for a used one. 

❷ Get a Thorough Inspection

Car maintenance is not as common in Panama and accidents are more frequent. It's crucial to have any prospective vehicle thoroughly inspected by a reputable and independent mechanic to avoid purchasing a car with hidden issues.

❸ Beware of Stolen Cars

Unfortunately, the risk of buying a stolen car is relatively high. You'll want someone who knows how to conduct thorough research verify the vehicle's history and documentation to avoid unwittingly purchasing a stolen car.

❹ Use an Independent Car Broker

Consider enlisting the services of an experience, honest and independent car broker, like Marc Vargas, who can help navigate the complexities of buying a used car in Panama. Marc has relationships with numerous reputable used car dealers and access to good mechanics. He can also provide valuable guidance throughout the process.

❺ Confirm the Dealer is Reputable

If you do buy from a dealer, I recommend waiting until your boots are on the ground in Panama and you're able to get the whole story. You'll learn A LOT more this way versus trying to do the job on social media, increasing your chances of working with a trustworthy dealer.

❻ Get help with the paperwork

Panama has mastered the "art" of bureaucracy. Seriously. I highly recommend you have your independent car broker or dealer, or a personal concierge, handle it all for you!

Due diligence, patience and listening are key...

Buying a used car in Panama requires in-person due diligence, lots of patience (rushing is NOT worth it), and listening closely to your gut in case it tells you if something isn't quite right. 

And, remember...if it seems to good to be true, it probably is!

Taking advantage of the recommendations on my Resources page will give you the best chance of success in navigating the process and bringing home a reliable vehicle for your adventures in Panama.