If you drive to Mexico, you will need a permit for your car. Upon entry into Mexico, be ready with originals and copies of your proof-of- ownership or registration papers (state title certificate, registration, or notarized bill of sale), current license plates, and current driver’s license. The auto permit fee runs about $30, payable only by non-Mexican bank MasterCard, Visa, or American Express credit cards. (The credit-card-only requirement discourages those who sell or abandon U.S.-registered cars in Mexico without paying customs duties.) Credit cards must bear the same name as the vehicle proof-of-ownership papers.
The resulting car permit becomes part of the owner’s tourist card and receives the same length of validity. Vehicles registered in the name of an organization or person other than the driver must be accompanied by a notarized affidavit authorizing the driver to use the car in Mexico for a specific time.
Border officials generally allow you to carry or tow additional motorized vehicles (motorcycle, another car, large boat) into Mexico but will probably require separate documentation and fee for each vehicle. If a Mexican official desires to inspect your trailer or RV, go through it with him.
Accessories, such as a small trailer, boat shorter than six feet, CB radio, or outboard motor, may be noted on the car permit and must leave Mexico with the car.
For more details on motor vehicle entry and what you may bring in your baggage to Mexico, you might also consult the AAA (American Automobile Association) Mexico TravelBook. See the Unique Guide and Tip Books section in Suggested Reading [1].
Since Mexico does not recognize foreign automobile insurance, you must buy Mexican automobile insurance. (For more information on this and other details of driving in Mexico, see Getting There by Car or RV [2].)
Links:
[1] http://www.moon.com/destinations/oaxaca/resources/suggested-reading/non-fiction
[2] http://www.moon.com/destinations/oaxaca/essentials/getting-there/car-or-rv