Honda 1995 CX assembled in Canada

I have a Honda 1995 CX and wish to keep it for a few more years (a great little car). I wish to make it legal, but not necessarily nationalize it. I understand that there is a means to get it legal, however I would not be able to sell it, and must keep it till its useful life. I don't think it prudent to spend a lot of money on a 20+ year old vehicle.

Is this simply a rumor?

Others have done it and are now driving around with "Estados de Mexico" licence plates on their cars.  I cannot offer an opinion on the legality of it, any problems getting insurance coverage or what happens if stopped by the Federal Police.  You will likely get many opinions which conflict as answers to this question.

Some problems with payouts from insurance companies unless you have a factura (Title in Mexico) many people did not get Factura when car was legalized/whatever. Yes they could get Mexican plates but maybe no payout on total wreck if you don't have factura. Check with Spencer is my advice.