Horizons Unlimited - The HUBB - buying a new motorcycle in Colombia

hey anywhere,

Don't know if you have left yet for beautiful colombia .......... but you will save more money if you pay in at least some cash usd, as getting cash out in a local bank in the usa/canada has less fees than here - you could agree on a fair exchange rate here with the dealer, not sure exactly how much cash you can bring into the country at the moment, but under usd$5000 you shouldn't have to declare. If your bringing lots of cash into colombia, the immigration officials will get funny as it could be thought of as payment cash from illegal sources/ money laundering etc. and if caught you will be in trouble or pay tax. fair enough.

As long as you dont go flashing your wads of cash around, tell anyone about it and keep it safe on yourself - you should be fine.

You could pay the rest on your credit card at the dealer, or get cash out - whatever works out to be more economical. I would however be careful of getting out large amounts of cash from banks/atm's, it is not uncommon in colombia (as in other countries) for criminal gangs to have spotters at banks, which then have others who follow you outside the bank, and even in vehicles for a while to rob you down the road.

Most banks here will only let you take out around usd $350 per transaction and charge you usd$5 per withdrawal, and around a maximum of $1000 per day able to withdraw. The atm exchange rate isn't great, but I find its better than credit card exchange rates.

Your credit card i presume will sting you with a service fee % of the total price paid and if you use it to get out a cash advance at a bank, you'll have a bad exchange rate and also stung with a hefty cash advance fee.

If you send a wire transfer to a local bank or the dealer, then the funds will be converted into colombian pesos but with an unsure exchange rate and unknown fee from the local bank. This is probably the safest method, but maybe not the most economical. It will take around 5 days to clear a transfer.

Western union may also be an option for someone to send the cash to you, but again be very careful no criminals watch you take it out or follow you. Western union can show you an exact figure you will receive and the fee payable, although it isn't that great all the time.

So therefore cheaper if you bring cash from the usa/canada if possible.

With regards to general insurance, it is a standard plan most people have which protects others vechicles and persons if you cause the accident, although Im not sure to what degree. It is usually bought on a month by month, 6 month or yearly plan. So it looks like you would have to get a 2 month, however sometimes it is as cheap to buy a 6 month than a 2 month. The dealer will help you get it organised locally. Seguros SA is the most common insurance company. Insurance is mandatory in colombia and you can be fined heavily and can have your bike immediately impounded if you dont produce it, as well as get in trouble if your in an accident.

If you want to get more than the basic insurance plan that covers your bike as well others vehicles, will cost sufficiently more - around 4x or more, than the normal insurance price depending on the make and year of bike. Honestly, if you had to make a claim it would take a while to get re compensated, by that time you would be well away from colombia. Id just get the normal insurance and be careful on the road and park in secure areas for extended periods of time.

Has anyone travelled recently to Colombia by air and know how much cash you can bring in without declaring? for the sake of this post and others

Let us know how you go.... and good luck

cheers
dom