28/10/2024
Buen Fin 2024
Here we are at the end of October already. November is just around the corner and its that time of year we start looking forward to Thanksgiving (Día de acción de gracias), and Buen Fin. If you are new to Playa or Mexico here is an event that you wont want to miss.
In Mexico, we do not have a Black Friday like the sales associated with the day after Thanksgiving in the United States. In the US we associate Black Friday with the beginning of the Christmas buying season. Buen Fin is a government sponsored program to help the local population purchase just about anything at steep discounts during a few short days in November. Although some sales may start early, Buen Fin is a Mexican Tradition in Mid-November.
Here in Mexico the kickoff to the Christmas Shopping season is called Buen Fin, El fin de semana mas barato del año. Not my translation but you get the drift. This year the official start of Buen Fin will be November 15th until November 18th. For shoppers, this is the most anticipated time of the year when everything goes on sale including goods and services. There is something for everyone and Mexicans try to hold off their large purchases as long as possible to get the best value for their pesos during this time. Expats have learned to wait for this event as well for purchasing big ticket items such as appliances, televisions and furniture. Even alcohol is on sale, so time to stock up.
Is it a bargain or not?
As with any big sale, remember the motto CAVEAT EMPTOR, buyer beware. Now would be a good time to start your research looking at prices for those items you are most interested in. Savvy consumers should begin to visit stores and check online to see what’s available and do your research on pricing to avoid paying more than you should. Sure, there will be skepticism about pricing and having spent 19 years in Retailing, we all know, items go off promotion before a big sale to give the impression of big savings. But for those in the know, there are HUGE savings out there for those that choose to do their Due Diligence. Is changing prices before an event legal? Yes, retailers plan for these events and markdowns cost money and they will rely on volume sales to meet their margins. If you come across a policy that seems sketchy, PROFECO the Mexican Consumer Protection Agency is the place to report it.
Forms of Payment
Obviously, the best way to take advantage of these low prices is using efectivo (cash). With the recent uptick in the exchange rates, paying in the National Currency is the best option. For larger purchases, consider using your credit cards if they don’t have international fees added on and you pay them off without interest. In many cases, credit card exchange rates are extremely favorable. If you have a Mexican Bank Account, consider using the SPEI system to transfer directly to the provider’s account. For anyone lucky enough to obtain credit here in Mexico, many stores will be offering 0% interest for payment within 3, 6, or 12 months. Unfortunately, this option is not available for Foreign Credit Cards used within Mexico. Credit must be through a Mexican Bank. Read the fine print carefully on the pricing in the store, there are some credit offers that have additional discounts if you use a specific Mexican Credit Card. These offers are usually listed with the price of each item which ALWAYS includes the 16% IVA. Finally, if you have dollars, always ask what the store’s exchange rate is for dollars. Yes, in some cases the store will offer a VERY competitive Exchange rate for your US Dollars and others will offer poor exchange rates. Home Depot, Chedraui and even Grupo Xcaret are currently offering rates exceeding the exchange houses and some banks here in Playa. Do your homework and run the numbers to find the best way to pay and save. Oh, and by the way, the Mexican Federal Government has finally passed a law (in September) that adding commissions for use of a Credit or Debit Card is now illegal in Mexico. It will take some time for enforcement so, know your rights, if a store wants to charge you extra for card use, say ¡Gracias! and move on.
Factura or Nota?
For those Expats furnishing homes here in Mexico and report the income through SAT. For these purchases to be legal deductions against Mexican Taxes you must ask for a Factura which requires having your RFC. For many bargain seekers, the Nota (simple receipt) is sufficient if you don’t claim deductions through SAT.
For Permanent Residents with Mexican Bank Accounts and RFC, now would be a good time to begin to establish credit. Everyone would like a Visa or Mastercard from the get go, but start small with Department Store Credit such as Liverpool and Home Depot as you will need to build credit history here in Mexico. You may have superlative credit in your home country, but it means nothing here in Mexico. Building credit in Mexico can be as easy as having your utilities domiciliado (on auto pay from your Mexican Account). If you have all the required documentation when applying for credit, approvals can be instantaneous in some cases. If you are wondering what type of documents are required, plan on bringing your Passport, Residency Card, Utility Bill, CURP and Constancia de Situación Fiscal (RFC).
Who Participates in Buen Fin?
All the major Big Box Stores will offer sale pricing as well as many smaller retailers that would certainly appreciate your business. Expats are mostly interested in Televisions, Air Conditioners, Furniture and Appliances. In our area here in Playa del Carmen as well as Cancun, you should consider The Home Depot, Liverpool, Sears, Telebodega, Boxito, Sams Club, City Club, Costco and countless other local vendors such as Mega Fix, Perssa just to name a few. Furniture Stores on the Federal Highway also participate.
While we are on the topic of Christmas purchases let’s talk about decorating for the holidays. For many this will be their first Christmas in Mexico and don’t know what to expect. Seasoned Expats already know the drill and act accordingly. As most of you have seen, stores are gearing up for the Holidays. Christmas decorations are already out in most all the big retail stores. My advice is don’t wait. If you see something you like, buy it now. Artificial trees and holiday ornaments sell out quickly and are almost never restocked. To avoid disappointment and thinking ”I will wait until they go on sale to buy”, think again. The turnover here is so fast there are no after-Christmas bargains to be had as there is nothing left to sell. By then end of November to mid-December, stock will have been depleted. Live Christmas trees imported from the US and Canada are available but in short supply. Walmart, Home Depot, and DAC carry them but be prepared to spend big. Live trees are another here today gone tomorrow type item. One of the biggest holiday questions is where can I buy Christmas Cards? Greeting Cards are not a tradition here in Mexico. They are few and far between and basically nonexistent. With no viable postal service for delivery, it’s not a tradition here in this part of Mexico. If you have cards to mail to the US or other countries, consider having someone Mule them to post for you to the US for mailing. Chances are if mailed from Mexico they will arrive months down the road or not at all.
If you are considering shipping gifts to the US or anywhere outside of Mexico, FedEx, DHL and UPS should be your go to shippers. Prices for shipping International are steep and based on size and weight. For those expecting gifts to arrive from outside of Mexico, make sure your shipper knows and follows the import restrictions and banned articles list as well as proper classification and the correct tariffs paid. This time of year, many shipments to Mexico are held in Aduanas (Customs) due to improper shipping on the part of the Sender. The cost of hiring a Broker to liberate these shipments most always exceeds the value.
So there you have it in a nutshell…..Feliz Buen Fin!
