Guide for Immigrants: What to Know Before Buying a Car in Brazil

If you're moving to or planning to relocate to Brazil, be aware that public transportation can be a decisive factor in your adaptation. In large cities, these services are often crowded and constantly run behind schedule. You should expect delays of up to 30 minutes. In medium and small towns, the limited public transport options can make your daily commute difficult. Therefore, to ensure a smooth adaptation outside of the major cities in São Paulo state, such as the capital, Santos, and Campinas, having a car will be necessary for getting around.

However, unlike in more developed countries, buying a car in Brazil is not an easy task. There are a series of specific considerations you need to be aware of regarding the local automotive market, especially concerning safety, quality, and costs. The differences compared to the European and U.S. markets are significant and can have a direct impact on your safety and finances.

The Vehicle Safety Issue in Brazil

The main difference you will find is a lack of safety. While in more regulated markets, car manufacturers prioritize cutting-edge safety, the reality in Brazil is different. The same car model, with the same name, can have completely different safety ratings depending on where it is manufactured and sold. A shocking example is the Brazilian Citroën C3 Aircross, which received a zero-star rating in the Latin NCAP crash test, while its European counterpart earned five stars. In the frontal impact test, the Brazilian model showed "weak protection" for the passenger's chest and "marginal" for the driver's. In the side impact test, the vehicle's structure suffered a "collapse" and a "relevant intrusion into the cabin," which increases the risk of serious injuries. To illustrate the difference, the European model offers an 85% chance for a driver to walk away unharmed from a collision at 64 km/h, whereas in the Brazilian model, this chance drops to just 33%.

Unfortunately, this is not an isolated case. A long list of popular cars in Brazil has failed safety tests. Between 2020 and 2022, models like the Ford Ka, Hyundai HB20, Kia Sportage, Fiat Argo, Fiat Cronos, and Renault Duster all received zero stars from Latin NCAP. This means that aboard one of these vehicles, the chance of death in an accident at over 60 km/h is higher than the chance of survival. Even models that had received better ratings in previous tests, such as the Renault Duster, were re-evaluated and received a zero-star rating due to problems like a lack of safety features, door opening, and fuel leakage during a collision. The Peugeot 208, which received four stars in Europe, got only two in Brazil due to the absence of essential items like automatic emergency braking and lane-keeping assist.

To understand vehicle safety, it is necessary to differentiate two concepts: active safety and passive safety. Active safety works to prevent accidents, such as electronic stability control (ESC) and automatic emergency braking (AEB) systems. Passive safety, on the other hand, comes into play when an accident is already happening, and includes airbags, seat belts, and the car's body structure, which is designed to absorb impact. A serious problem with Brazilian cars is their structural instability, which even with airbags, can result in victims being crushed in the wreckage.

Before buying, always check the Latin NCAP rating and compare the Brazilian version with its European or American counterpart. A 4 or 5-star car is much safer than a 0 or 2-star car.

Why Are Cars in Brazil So Unsafe?

The reason for this alarming difference is multifaceted and involves three main culprits.

1. Weak Regulation: The main failure lies in Brazilian legislation. The safety rules imposed by the government are far less demanding than those adopted in Europe or the United States. A car can be considered unsafe by Latin NCAP but still be eligible for sale in the country because it meets the federal government's minimal requirements. Although airbags and ABS brakes became mandatory in 2014, stability control only became mandatory in 2024, more than a decade after Europe. The Brazilian government, through programs like Rota 2030, offers tax benefits to car manufacturers with limited and slowly-implemented safety requirements.

2. Automaker Tactics: Automakers have found a market in Brazil where they can maximize profits by cutting costs on safety. According to IHS Automotive, the profit margin for manufacturers in Brazil is 3.5 times higher than that in the U.S. and at least double the global average. To achieve this, cars are produced with weaker welds and inferior materials compared to those used in other countries. Instead of investing in safety, manufacturers prioritize comfort accessories like air conditioning, power windows, and infotainment systems. The example of the Chevrolet Spin and Tracker shows that the price difference between a safe and a less-safe model can be as little as 4%, which refutes the argument that safer cars would be unaffordable.

3. Brazilian Consumer Culture: The lack of priority Brazilians place on safety also contributes to this situation. Historical examples show that when Fiat offered an optional safety package with airbags and ABS brakes, customers preferred to spend the same amount on alloy wheels. The same happened with Renault, which tried to highlight the standard safety features of the Clio, but the strategy failed because the public did not see the item as a key differentiator. This behavior reinforces the automakers' decision to invest in comfort features at the expense of safety.

Other Important Considerations for Car Buyers in Brazil

In addition to safety, there are other factors an expatriate must consider when buying a car in Brazil.

Roads and Maintenance: The condition of Brazilian roads can also be a risk factor. Poorly maintained, potholed, and broken asphalt roads are common, which requires extra care for the vehicle. A highway with these characteristics can reduce the car's lifespan by half; in other words, 100,000 kilometers on dirt roads can be equivalent to 200,000 kilometers on asphalt. Therefore, it is crucial to perform more frequent check-ups than usual and keep the spare tire properly inflated. Driving in these conditions requires patience, reducing speed, and maintaining a safe distance from the car in front. Original parts are expensive, and the parallel market often offers counterfeit options. Always prefer dealerships or authorized workshops to avoid future headaches.

Cost and Financing: Brazil is one of the countries with the highest tax burden on vehicles. A popular car can have up to 37% of its price in embedded taxes. Additionally, vehicle financing in the country is complex. Interest rates are high, and unlike in countries like the United States, traffic fines are linked to the car, not the owner's CPF (Individual Taxpayer Registry). This means that if you finance a car and have to return it, it may have so many fines that it becomes useless to the bank. In Brazil, vehicle repossession for non-payment can take years, which increases the risk for banks and, consequently, the cost of financing for the consumer.

Taxes and Adapted Models: The Brazilian tax system still penalizes the purchase of safer cars, as the IPVA (Vehicle Ownership Tax) is higher for newer and more expensive models, which leads many to opt for older and less safe cars. Automakers, like Fiat, have adapted to this reality by creating "jabuticaba" cars—robust, technologically less advanced models that are not sold in Europe but fit the purchasing power and needs of the Brazilian consumer.

Fuel: In Brazil, most cars are "flex-fuel," meaning they run on either gasoline or ethanol. Gasoline is more efficient and lasts longer, but ethanol is generally cheaper per liter. Diesel, on the other hand, is only used in pickups and SUVs and has the problem of deteriorating if the car is left unused for too long.

Tip: Calculate not only the purchase price but also the cost of maintenance, insurance, and fuel.

Brazilian Traffic Safety

Brazil has high rates of traffic accidents. In the last 15 years, more than 450,000 people have died on Brazilian roads. This is due to a combination of reckless driving, poor road conditions, and less safe cars.

Tip: Prefer models with stability control, multiple airbags, and a good body structure. They may be more expensive, but they significantly increase your chances of survival in an accident.

Used Car Market and Bureaucracy

The used car market is strong but also full of risks. Since fines are tied to the car's document, someone buying a used car might discover debts after the purchase. Additionally, the transfer of ownership can be a time-consuming and bureaucratic process.

Tip: Always check the vehicle's history with the Detran (Department of Motor Vehicles) before finalizing a deal and prefer reliable dealerships or authorized stores.

In summary, the decision to buy a car in Brazil requires a very different approach than what you would have in other countries. The priority cannot be just the price or the appearance, but the safety, the quality of the engineering, and the vehicle's suitability for local conditions.

Conclusion

Buying a car in Brazil requires planning and extra caution. An immigrant must be prepared to:

• Pay more than in their home country.

• Face bureaucracy and high-interest rates on loans.

• Deal with simplified and less safe models.

• Bear the burden of heavy taxes and expensive maintenance.

At the same time, it is possible to make good choices if you research safety ratings, compare international versions, evaluate the total cost of ownership, and prioritize safety over comfort accessories.

In Brazil, a car is not just a consumer good, but also a reflection of the country's economic and regulatory peculiarities. Therefore, being well-informed is the first step to a safe purchase.

"Buying a car in Brazil as a foreigner: safety issues, costs, and regulations" "Brazilian car market for expats: what you need to know about safety" "How to choose a safe car in Brazil: Latin NCAP ratings for foreigners" "Importing a car to Brazil vs. buying locally: a guide for expats" "Cost of car ownership in Brazil: taxes, insurance, and maintenance for foreigners"

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