City streets in Mexico
One of the major revelations in light of the 2020 pandemic and everything since then is a seismic restructuring of the global workforce. We finally realized (although many companies are reigning it back in) that the workforce could, by and large, still function working from home. And by home, we mean anywhere with halfway decent internet.
Some states became prohibitively expensive, others lagged in releasing restrictions, and the call of nature became louder when urban areas were off-limits. The result of all that motion: the number of people working primarily from home tripled between 2019 and 2021. That’s not a number we pulled out of thin air – it’s a direct quote from the United States Census Bureau.
And one of the places people moved was Mexico, including many techies from California. And why not? It’s cheap and beautiful, and the climate is great, albeit a little hot.
But what if you want to drive your car to Mexico without registering it in Mexico? Or what if you’re looking to buy a car near the border but don’t want to register it in a border state like California or Texas? Can you register a car in the United States while it’s in Mexico? Can you drive in Mexico on a U.S. plate and registration?
Let’s find out the answers to these questions and more.
Can I Legally Drive A U.S. Car in Mexico?
Yes! Americans have been driving down to Mexico forever. Plus, you have to realize that many Americans in border towns still work in Mexico, shop in Mexico, and have close family in Mexico.
There are probably worse places to drive than Mexico.
According to Progressive Insurance, there are a few items you need to have in your possession before you drive your car into Mexico:
U.S. passport or passport card
State-issued driver’s license
Mexico visitor’s permit (FMM) (now issued digitally)
Proof of vehicle registration
Temporary vehicle importation permit. This is not applicable in hassle-free zones, although you still need an FMM in those zones.
You’ll need a permission letter if you have a lien on your car. We highly recommend a cheap car bought with cash for your Mexico travels.
Car insurance that is approved for Mexican travel.
We’re not here to tell you what happens if you don’t return to the United States in time. It depends on which document is expiring, but in all cases,, it’s safe to say you will have a long and potentially expensive road back to the States. Just don’t overstay your paperwork, and you won’t have to worry about it.
What Are Hassle-Free Zones?
Areas of Mexico called the Free Zones have relaxed rules for American drivers as long as they stay in that immediate area. Within this defined zone, you do not need to get a transportation permit from the authorities.
This isn’t the same thing as your tourist entry permit, which you will still have to get upon entry. The tourist entry permit is issued at a National Migration Institute office once you are in-country.
In short, you can drive an American-plated car with one less form (and with that, quite a bit less hassle) in these areas – including the entire Baja Peninsula – hence the name Hassle-Free Zones. For that reason, you’re likely to see a lot more American cars in Baja and the other Free Zones than anywhere else in Mexico.
How Do I Drive Beyond the Hassle-Free Zones?
Driving a car registered in the United States deep into Mexico (i.e., beyond the Free Zones) is another ballgame entirely. Mexico Visitor’s Permit only requires relatively basic information about you as a person; however, the additional paperwork necessary to go beyond the free zones requires significant vehicle-specific information.
Don’t overstay your welcome without the proper paperwork.
As an American, if you drive beyond Mexico’s Free Zones, you are officially importing a vehicle to Mexico temporarily. To receive an import permit, you must provide proof of vehicle ownership (preferably a title and/or registration) and pay a sizable deposit which will be refunded when the vehicle is returned to the United States before the permit expires.
This gets even more complicated if the vehicle doesn’t belong to you. It could belong to a family member or friend, it could be a company car, or it could belong to an LLC that you own, like the one you receive with some of our Vehicle Registration Services.
Should I Tag It in My Home State?
So, here is where we find a conundrum: if you are living on the road, where exactly is your home state? Or, if you live in Mexico for half of the year, why does it matter what your home state is?
More to the point, what are your home state’s rules on registration? See, the states that have smog check requirements demand you have a passing smog check before you register the car.
We like South Dakota here at Dirt Legal.
And they don’t particularly care that your car has not been home polluting their air for the last six months. You’ve been to Mexico? That’s nice. Got a passing smog check? No? Can’t help you. This can also cause a scheduling headache since you must be in the U.S. to pass a smog check whenever your state requires it. Can’t make it back? No registration renewal for you.
It makes a lot more sense to register your car in a state that not only has no smog check requirements but also has no in-person requirements at all. That state would be South Dakota, and the service provider would be Dirt Legal.
South Dakota has no requirement for in-person registration, which means you and your vehicle never have to set foot in South Dakota from the initial registration to the annual renewal.
You can select our out-of-state program for South Dakota, click the buttons, and fill out the information. You’ll get a packet of paperwork from us in a few days. Fill it out, attach anything else we need, and send it back. Then, sit back and wait for it. You’ll get a fresh registration and tag, and you are good to go.
Oh, and if you are busily exploring Mexico, we can handle your annual renewals for you.
What If I'm A Nomad and Don't Claim a Home State?
The digital nomad craze is all over the internet. While I personally think it sounds a little overblown (I lived in a 34’ travel trailer for a month last year; I would not make a habit of it), our editor once lived out of his Volkswagen for several months and hasn’t stopped talking about it since. I guess if you’re single and not all that into personal hygiene, the sky’s the limit.
But if this lifestyle is your thing, then there is absolutely no incentive for you to tag and register your car in a state that sucks to register in.
Why suffer through expensive smog checks and scrutinous state inspections when you aren’t tied to that state as a resident anymore? And even if you are a resident of an oppressive state, you are under no obligation to register there. You can have multiple domiciles and always tag your car in those places.
Mexico doesn’t care what state the car is registered in or what tag it wears as long as it’s valid and current. That means states like South Dakota (no smog checks, no inspections, no hassle) are fair game to register your car and focus on your travels.
Do I Need to Get It Inspected If It's Tagged Out-of-State?
That depends on what state your car is tagged in. If you are maintaining a tag in California because that’s where your primary residence is, then yes, you will still have to abide by the mandatory inspections. This goes for any other state that requires annual inspections of any kind.
The obvious solution is to avoid these at all costs. Otherwise, you will have to plan your stay in Mexico around your car’s inspection cycle. And what if you flunk the smog check when you get back? Or what if your car gets beat up and you fail a safety inspection?
In California, you cannot even offload the vehicle (in the state) if the smog check is lapsed or failed. So you can easily get stuck holding the bag when the car goes belly-up. And if you think, “I’ll just sell it,” selling your car in Mexico is possible in many cases, but not all cases – that’s an entire process that goes beyond the scope of this conversation.
What About Smog Checks?
If your car is tagged in a state that requires smog checks, you’ve got to take it back and get them done to keep your registration current. Otherwise, you could get into hot water with the Mexican authorities if you are rolling around in a U.S.-tagged car and the registration has lapsed.
This is one of the many reasons why we suggest a South Dakota out-of-state registration. There are no smog checks or state inspections required in South Dakota. This allows you to register your car from anywhere and have the proof of registration and tag mailed to you. No gimmicks, no BS. You need the stuff to make your car street-legal, and you can head off to Mexico knowing that you will not lapse a smog check or state inspection.
The Dirt Legal Advantage
Your time is precious, especially when you’re getting ready to travel to Mexico. You need to have many other things squared away to travel there legally, and worrying about your registration isn’t one of them.
We’ve got you covered. Whether you are buying a new car for the trip, or want to swap out your registration for a car you already own, we’ll register your car for you and handle your registration renewals so you can focus on life.
Also, check out our Montana LLC registration program if you want to owe no sales tax! And if the car is over eleven years old, a Montana registration is permanent so you never have to renew it again. Yeah, that’s pretty rad. Oh, and if you want to take a motorcycle to the sunny Yucatan, we can also get that registered. Thanking about taking an RV down there? Yes, you can do it legally, and we can register your rig.
The point is that we can register anything you want to take to Mexico. If you’re not sure, just give us a call! We’d love to talk over your options with you.
Moving to South Dakota? Want to get a jump start on the paperwork? Great idea! And we can help. We have worked with South Dakota for year to provide title and registration options, so we can get your vehicles registered and tagged for South Dakota ahead of time.