Mexico to Require Deposits for Autos

In an effort to halt a booming trade in contraband cars, Mexican authorities are passing the buck--to motorists driving U.S. vehicles south of the border area.

Starting Wednesday, Mexican officials are scheduled to impose a new system of payment for foreign vehicles entering the country’s interior. Drivers must leave a deposit of $400 if their foreign-made car is a 1993 model or older; $600 if the vehicle was made from 1994 to 1998; and $800 if the auto is newer. The payment at the border can be put on a credit card and will be refunded at any border point the vehicle passes through on its return to the U.S.

Only drivers planning to travel beyond the 15-mile border zone will be required to leave the deposit. Baja California will be exempt from the measure.

The new regulation replaces a three-tier system under which most drivers paid $11 for permits of up to six months to operate their U.S.-made vehicles in Mexico. Mexican officials say that many people never returned the cars or trucks to the U.S. Instead, they illegally sold them or gave them to relatives in Mexico, where used vehicles cost more.