Cars are not cheaper in Mexico; it is slightly more for an equivalent make and model in the United States. Gasoline and diesel fuel is subsidized by the government, so that lowers some cost for Mexico, in c comparison to the U.S. To show the relative difference in car cost between Mexico and the United States, look at car sales on the popular site Craigslist. A 2001 Honda Accord (basically same options, etc) sales on average for $5500 in Mexico City Mexico and $4000-$4500 in New York, NY. Once you compare gas prices, repairs, insurance, registration based on laws, and many other automobile costs there becomes an almost equal balance to owning a car in Mexico and the U.S.