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Daily life · 4 min · EN

Buying a car in Panama (new, used, leasing): the 2026 guide

We bought our first car in Panama in 6 weeks, with one false joy and a real ordeal. Here are the real procedures, the traps, the up-to-date prices, and the buy vs lease decision.

Inside Panama2026-05-17✓ field-verified

Panama City — traffic on the Cinta Costera
Panama City — traffic on the Cinta Costera

Experience note — We bought our 2024 Hyundai Tucson used (40,000 km, 2 years) in September 2025, 6 weeks after arrival. Total procedure: 17 days between dealer visit and final license plate. A few unforeseen ordeals we documented here so you don’t repeat our mistakes.

Why you’ll need a car in Panama

Panama City has two modern metro lines (1 and 2) covering the main axes and 50% of useful commutes. But:

Verdict: to live comfortably in Panama beyond 6 months, a car becomes quasi-mandatory — unless you work remotely from Casco Viejo and accept Uber dependency.

Buying new: the 4 serious dealer brands

Toyota (Petromar)

The Panamanian market #1. Present everywhere: Costa del Este, San Miguelito, Albrook, David. 2026 range: Corolla ($23-28k), Hilux ($35-45k), RAV4 ($32-38k), Land Cruiser ($75-95k).

Pros: parts everywhere, specialized mechanics in every city, exceptional resale value (Hilux and Land Cruiser lose <30% in 5 years). Con: prices weakly negotiable, 3-year warranty = standard.

Hyundai (Excel Automotriz)

The #2. Dealers Costa del Este + Albrook + David. Range: Accent ($18-22k), Elantra ($22-26k), Tucson ($28-35k), Santa Fe ($38-44k), Palisade ($52-60k).

Pros: superior finishing for the price, 5-year/100,000 km warranty, open to negotiation (~5-8% possible). Con: decent but inferior resale value to Toyota.

Kia (Camsa)

The serious challenger since 2020. Premium marketing, elegant interiors. Sorento ($35-42k), Sportage ($28-34k), Carnival ($45-52k) popular with families.

Pros: modern design, complete factory equipment. Con: 3-year warranty only.

Mitsubishi (Distribuidora David)

SUV/pickup specialist. Outlander ($29-36k), Montero Sport ($38-45k), L200 ($32-38k).

Pros: rural toughness, ideal for those who frequently go to Boquete / Pedasí. Con: less refined interiors than Hyundai/Kia.

Buying used: 3 options

1. Brand dealerships (certified used)

Toyota Certified, Hyundai Certified, etc. Inspected cars + residual warranty. Prices 5-10% above private market but total peace of mind.

2. Web sites

Encuentra24.com: the Panamanian Leboncoin, 60% of the used market. Many offers, variable quality. Tu Carro Panamá: more dealership-oriented.

3. Private-party purchase

Often best price but requires strict checks:

Our recommendation: for a first purchase, go with a certified dealership. Once familiar with the market, private purchase OK.

The purchase procedure (17 days typical)

Day 1-3 — Choice + test drive Visit 2-3 dealerships + test drive. Request written quote with: net price, taxes, registration fees (~$150 typical), first year of insurance (negotiable).

Day 4-7 — Financing (if applicable) Banco General and Banistmo offer auto loans. Documents required: provisional cédula (resident) OR tourist passport for cash payment. Decision in 48-72h.

Day 8-10 — Payment + transfer Payment by bank transfer or certified check. The dealer prepares the título de propiedad (ownership certificate) in your name.

Day 11-14 — ATTT registration The dealer files the dossier at the Autoridad del Tránsito y Transporte Terrestre (ATTT) in Albrook. Definitive plate issued in 5-7 days. You can drive with a temporary paper plate during this time (taped to the rear window).

Day 15-17 — Plate + insurance Pickup of definitive plate. Subscribe to mandatory auto insurance (minimum liability). You’re operational.

The classic trap: “private import” American cars

You’ll see many ads for cheap American cars (Ford, Chevrolet, Dodge, Jeep). Beware:

Simple rule: if the advertised price is >25% below market, it’s suspicious. Check ATTT + independent mechanic or pass.

Mandatory auto insurance

Liability insurance (Seguro Obligatorio) is mandatory to drive. Annual cost ~$80-150 depending on vehicle.

Comprehensive insurance (cobertura completa) is optional but strongly recommended: $280-420/year for an average car. Covers theft, accident, vandalism, extended third-party damage.

Reliable companies:

Comparison quote: ASSA is generally cheapest for Japanese/Korean vehicles, MAPFRE for European.

Buy vs lease: the decision

For a stay ≤ 12 months: lease. Hertz, Avis, Budget offer long-term at ~$500-800/month all-in (insurance + maintenance). No paperwork, simplicity.

For a stay 12-36 months: buy used, resell at departure. Net cost (purchase - resale - maintenance): ~$8,000-12,000 for 24 months vs $12,000-18,000 leasing.

For a stay >36 months: buy new Asian. 5-year net cost: ~$15,000-22,000 vs $30,000+ leasing.

Going further

A question about your purchase? Reply to one of our newsletter emails with your timing, budget, intended use (city vs Boquete weekends). We’ll tell you what we think — we have no dealer deals, just real talk.

— Jade, from Bella Vista (with the 2024 Tucson)

Questions & answers

What readers ask us

Do you need to be a resident to buy a car in Panama?

No — a tourist with a valid passport can buy a new or used car. But to register it in their name, you need either a Panamanian RUC (tax registry) or provisional resident status (provisional cédula). Solution for non-residents: purchase in the name of a Panamanian S.A. (often recommended by expat attorneys) or under a resident family member's name. Many dealers accept cash payment without residency — the complication arrives on the license plate.

How much does a new car cost in Panama vs Europe?

Overall 15-25% cheaper in Panama than in France for Asian models (Toyota, Hyundai, Kia, Mitsubishi), thanks to reduced import taxes. A mid-range 2026 Toyota Corolla: ~$24,000 USD in Panama vs ~€27,000 in France. European models (Renault, Peugeot, BMW) are 10-15% MORE expensive in Panama (Europe-to-LatAm import taxes). American SUVs (Ford, Chevrolet) are 5-10% cheaper.

Which brands are most sold in Panama?

Top 5 brands in 2025 market share: Toyota (24%), Hyundai (14%), Kia (11%), Mitsubishi (9%), Nissan (8%). These 5 total 66% of the market. Why: parts available locally, specialized mechanics everywhere, high resale value (3-5 years, ~30% loss).

Buy new or used?

For a stay ≤ 2 years: used (resale loss offset by use). For > 3 years: new, especially Asian (Toyota, Hyundai). The Panamanian used market is expensive relative to France — a 5-year-old / 80k-km Toyota Corolla sells for ~$14,000 USD in Panama vs €11,000 in France. This comes from cars lasting less (tropical climate + ambient salt + potholes).

How to finance a car purchase in Panama as a foreigner?

Three options: (1) cash — always possible, recommended to stay flexible. (2) Panamanian bank financing — possible once a resident, rates 7-12% over 36-60 months, requires provisional cédula + local job or 3× monthly proven income. (3) Dealer credit — sometimes available for non-residents but at usurious rates (15-22%). Recommendation: cash whenever possible, or local bank after cédula.

Annual costs of a car in Panama?

For an average car (Corolla, Sentra, Sorento) in Panama City: mandatory third-party insurance ~$280-420/year, circulation sticker $12-25/year, annual technical inspection $25, gas ~$1,200-1,800/year (at $0.75/L and 12,000 km/year), maintenance + tires $600-900/year, residential parking $0-80/month (free in building garage, paid in dense neighborhoods). Total $2,800 to $4,500/year, ~50% cheaper than Paris.

Is the European license valid in Panama?

During the first 90 days of tourist presence, the European license is sufficient. Beyond that, you need the Panamanian license. For French citizens: direct exchange without exam, procedure at the ATTT (Autoridad del Tránsito y Transporte Terrestre) in Albrook. Documents: passport, French license, medical certificate, provisional cédula (residents) or tourist passport with valid license. Lead time 1-2 days, cost ~$30.