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Buying cars (2 in fact!) in LA

Buying cars (2 in fact!) in LA

Old Jul 9th 2003, 9:17 pm
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Default Buying cars (2 in fact!) in LA

We are moving to LA in about 2 months and need to buy 2 cars. Pretty promptly as well.

We have put some funds aside, but wondered what the best way to go about all this was and if there are any pitfalls that can be easily avoided. I know insurance will be pretty high, but again how can you keep that in check? I am not going to buy new, but pre-owned. Probably Japanese too, unless someone can persuade me otherwise.

I do have this idealised vision of a nice SUV (like a Toyota RAV4 or Honda CR-W) and a funky softop (well it is LA!) Is that another way to guarantee high insurance?

Should I just walk into a dealer and buy two cars from his lot (and attempt to negotiate a discount).

I am not very handy around cars either.

Thanks in advance.
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Old Jul 9th 2003, 9:42 pm
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I was thinking of going down the second-hand car route too, but my partner, who is American, has told me that a loan for a second-hand car will work out more expensive than a loan for a new car, so I anticipate buying a brand new one. I will either get a loan myself if they let me, or use my partner either as guarantor or get her to take out the loan for me. I'm after a Rav4 too! I just love them!
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Old Jul 10th 2003, 1:16 am
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Default Re: Buying cars (2 in fact!) in LA

Originally posted by ireland132
We are moving to LA in about 2 months and need to buy 2 cars. Pretty promptly as well ......
If you have a job(s) lined up new cars are within your grasp even if you have no US credit history. .......

I recommend you check Autosource for a car (phone NY 001 516 496 1816 http://www.intlauto.com). If you have no US credit history you will find it impossible to buy a car on credit. So long as at least one of you has a confirmed job to come to and you commit to a car BEFORE you l leave the UK they will sell you a Ford/GM/Chrysler (only) at the dealer price, and on manufacturer's credit terms.

I got a car at 0% over 36 mths last December - 20% down, plus the sales tax, and 36 payments of $530 and a $25,000 car is all mine! Of course cheaper cars are also available - the Ford Focus is a popular small (this is the US, remember) car right now, and much cheaper than in the UK.

This is not some "weird internet deal", Autosource specialise (mostly) in selling to the US armed forces, but have this sideline in selling cars to immigrants. Autosource is only the agent and my credit deal is with Ford Motor Credit - to which I send my monthly payment. E-mail me for more info if you don't believe me and you think that this deal is too good to be true.
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Old Jul 10th 2003, 6:30 pm
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Default I wouldn't buy new

even if the loan is cheaper - 1st and 2nd year depreciation on cars (especially domestic brands) appalling

it is very likely you will end up 'upside down' on your loan (owe more than the car is worth) in two years time

buying a second-hand toyota or honda is a great idea

someone else has suffered the pain

I have looked at autosource, and even taking into consideration the saving off list price - total cost of ownership works out bad

my $0.02

and they only supply domestic brands at a discount
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Old Jul 10th 2003, 6:32 pm
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Default Also

a lack of credit history is NOT a problem when getting a car loan - if your partner is prepared to be a guarantor on a loan

I am probably going to buy a 1998 BMW 528 for about $18,000

i will put down $8000 - and bank of america will give me $10,000

other benefit is that this approach will establish you a credit history
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Old Jul 10th 2003, 7:01 pm
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Thanks for that. I wasn't really planning to buy new - for the reasons you've mentioned. A good pre-owned from a dealer is probably our best bet.

I think we'd be able to have about $16000 cash and the rest would be a loan (for the two cars). I don't want to spend more than about $25-28,000 in total. I think it would be easy to get carried away - it is LA after all :-)
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Old Jul 10th 2003, 7:08 pm
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I bought a brand new Rav4 back in April. I was going to go for used but they wanted to give me a 10% interest rate on an 18.5K loan and I didn't want to do that. I decided to go new as my partner said I could use her credit and I got 0% over 3 years with an 18K loan.

I think it depends what your priority is. Mine was the payments being around $500 for 36 months (which I got) rather than what's the car gonna be worth in 3 years time and I'd also rather pay back what I borrowed rather then a huge amount more. I do know that the Toyota Rav4s seem to hold their value relatively well over here and I know that as soon as you drive it away you lose value. At the moment I don't care. You always pay for what you get and I like having a NEW car!!!

I did discover my first huge scratch the other day and was a bit sad

Her credit also reduced my insurance quote from $2,000 to $700. I went with AllState. They have taken into account that I have been driving for 9 years...
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Old Jul 10th 2003, 7:15 pm
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re: your Rav4. So did you change your mind when they offered you a better loan rate at the dealer?

I wouldn't/couldn't stretch to $18k (but also because I do have access to funds for stuff like this).

That insurance sounded like a good deal too. I take it you partner is an American citizen?
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Old Jul 10th 2003, 7:24 pm
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Yep. I went for new. We just hopped across the 'motorway' and changed the deal from used to new. There was no way that I was going to pay such an extortionate interest rate. She is a USC with top credit history. She guaranteed my loan so if I mess up then so does her credit... She has her car on a 0% too.

I only put 3.5K down though and I know the more you put down the better the interest rate on a used, but that was my limit.
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Old Jul 11th 2003, 2:19 am
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Originally posted by ireland132
Thanks for that. I wasn't really planning to buy new - for the reasons you've mentioned. A good pre-owned from a dealer is probably our best bet. ....
You should be careful as the market here is not at all the same as in the UK. Because new cars are so much cheaper in the US the discount you'll get for buying second hand, compared to new, is nowhere near as much as you might expect.

On top of that depreciation is only an issue if you are planning on trading in within a couple of years. Otherwise you'll get good value from any loss in value, and you won't have had your car thrashed around by some lead-footed lunatic.

Originally posted by BritGuyTN
a lack of credit history is NOT a problem when getting a car loan - if your partner is prepared to be a guarantor on a loan .....
That's a very big "if". I was assuming that I was addressing somebody who didn't have a US "sponsor".

Last edited by Pulaski; Jul 11th 2003 at 2:33 am.
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Old Jul 11th 2003, 6:52 am
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Thanks for that. I don't have a US "sponsor", I'll be coming on an H1B visa and my wife on something else, so our credit rating will be zero. I have been offered a loan by some friendly in-laws 'though, if the rate on a US loan was not too hot.

The only thing about pre-owned was that I was going to buy it at a dealer - although that still doesn't guarantee it hasn't been thrashed by a lunatic :-)...

and because it's LA, we will need our cars as quick as possible. Will need to give this some more thought. Another thing to ad to list of "things to do before we go!". It's growing...

Thanks.
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Old Jul 11th 2003, 11:11 am
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Originally posted by ireland132
....... and because it's LA, we will need our cars as quick as possible. .....
As long as you buy a car from inventory (i.e. you might not get the color, or exact spec you want), or place your order a few weeks before you arrive, Autosource will have a car waiting for you. It took me six weeks to get my Mustang, order to delivery, and that was a car built to order (non-inventory).

Good luck!
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Old Jul 11th 2003, 1:20 pm
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That sounds pretty cool. How are Fords for reliability? I was obviously going for Japanese cars because of their good reputation.

In terms of after-sales and service, do you take it to a local dealer? What is the situation in this whole area?

and was you Mustang expensive to insure?
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Old Jul 12th 2003, 4:52 pm
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Default Re: Buying cars (2 in fact!) in LA

Originally posted by ireland132
We are moving to LA in about 2 months and need to buy 2 cars. Pretty promptly as well.

We have put some funds aside, but wondered what the best way to go about all this was and if there are any pitfalls that can be easily avoided. I know insurance will be pretty high, but again how can you keep that in check? I am not going to buy new, but pre-owned. Probably Japanese too, unless someone can persuade me otherwise.

I do have this idealised vision of a nice SUV (like a Toyota RAV4 or Honda CR-W) and a funky softop (well it is LA!) Is that another way to guarantee high insurance?

Should I just walk into a dealer and buy two cars from his lot (and attempt to negotiate a discount).

I am not very handy around cars either.

Thanks in advance.

Hi,

I worked as a carsalesman for 4 years in Los Angeles before moving back to Europe (Worked for Enterprise Car Sales, new Saab dealership & Beverly Hills BMW ).

Moneywise, you'll almost always be better off buying a nearly new vehicle ( 1 or 2 years old) as long as it has been serviced regularly by the dealership. Ideally, buying a used vehicle still under warranty + purchasing a manufacturer only extended warranty will give the peace of mind you get with a new car for much less than a new one.
Buying a previous rental car from Enterprise Car Sales (one of my previous employer) could be a good bet: the prices are non negotiable, not too high, the staff is good (college degree required) & the company has a very ethical business culture.
Do people trash rental cars? Rarely, because it cost them a lot to damage a vehicle & mechanically, rental cars are maintained well & you can't really damage a vehicle in a little as a year of a use.
You'll get the remainder of the new car warranty + you'll be able to purchase an extended warranty, which i strongly recommend: although cars break down much less now than before, when they do it's much more expensive.
You could also buy a nearly new car at a dealership but as a newcomer, you probably will have to haggle to get a good deal.
if you go through a dealership, make sure you buy a used Ford from Ford , a used Chevy from Chevrolet etc...+ get the extended warranty (whose price is negotiable too BTW ==>I made lots of money on them !! but they're really worth it)
For financing w/o credit history, it seems Ford Credit could be the most generous lender but as long as you have enough down payment (more than 20%), you should be OK for as long as u've got a job. Try to find out if the company you'll be working for has a Credit Union. For first time buyer w/o credit history (I was one too), they usually will give you the best rate especially on used vehicles.For new vehicles, you might be able to get the best terms with the manufacturer.
Car reliablity ? Newly built american cars are almost as reliable as japanese ones . I wouldn't hesiate to get one, especially if you buy used since they lose their value much more quickly than japanese brands-American buyers still think that US cars are not reliable & they are WRONG (LOL)
What car to buy ? get a Chrysler Sebring convertible, it's cheap when used (too many of them on the market) the last ones (last 3 years or so) are very reliable, nice looking, good ride, roomy enough for 4 people+ luggage on trips to the Grand Canyon, Las Vegas or Palm Springs !
Whatever you buy, make sure the car has enough power to merge on freeways (tricky in LA traffic) & realize that US cars are usually cheaper to run( maintenance + insurance) than japanese cars. SUV in general are horribly expensive to insure in LA & japanese cars always end up stolen (Honda+ Toyota mainly).

Hope this helps
BTW, if you tell me what your budget is, I can recommend you some cars (in this forum so everyone can benefit from the advice of a crooked car salesman )
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Old Jul 12th 2003, 5:31 pm
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Thanks for a very informative reply.

Here's my scenario. See what you think.

We are moving to LA, all going well (that visa thing!) In September.

I will be working and having a not-too-big commute each day. If accommodation works out as planned, it'll be Los Feliz to Burbank. It's a decent job with an okay salary (well, probably better than just okay)

My wife will not be working - she is actually 5 months pregnant - and will use her car for whatever she needs during the day.

We have some savings for start-up costs, will be selling our UK car and will probably take a bit of a loan. I have the feeling that my in-laws may offer me a fairly competitive rate (!?), but we may end up borrowing in US instead.

If I said we were looking to have about $18,000 in cash available, plus loan the rest (another $7-12,000 max) does that sound reasonable?

We obviously need 2 cars. We don't really wany anything too flash, although stupidly I thought a Toyota RAV or Honda CRV looked fun. (I have probably just contradicted myself in 2 sentences!). However, I also don't want something that is crippling for insurance and a favourite of thieves. The japanese thing was probably just a misconception.

I suppose one car will be the main family car and the other will be the less-used commuting car.

I have to say that as a Brit (London via Edinburgh) the idea of a convertible is very appealing indeed. As long as there's room for baby seat and buggies/toys/baby stuff etc.

Should we get one that is vaguely fun (e.g. the Sebring) and another that is just dead boring and reliable?

We also need to get the cars fairly quick (well, one at least). How do you buy from Enterprise?

I appreciate your advice.

Many thanks.
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