mrjt1986

Pulaski

You're a bit late. You should have bought through International Autosource before you arrived in the US.

You need to find a dealer that subscribes to an expat/ new immigrant program, which I know that Ford and VW-Audi have, as does Mazda. I think that GM and Chrysler Dodge does too. …. But you need to know to ask for the expat finance program.

SpoogleDrummer

It also depends on how much the car is that you're hoping to buy, you're probably looking at about $500 a month for a vehicle that costs about $25K after taxes etc even with credit history and a good score unless you put down a hefty deposit. Personally I paid $800 and $3000 for my first 2 cars here and lived with them for a while before looking into financing something more reliable/practical.

It's also worth getting insurance estimates on potential cars before you buy them too as you could be in for a nasty surprise.

Guindalf

Personally, I wouldn't do it because the interest rates are usually pretty high, but if you absolutely need a car, then the 'But Here-Pay Here' used car dealers may be an option. Generally, they charge more because they don't do a credit check and take a bigger risk on lending the money. Of course, you can only buy a used car this way and beware, warranties are not what they are in the UK!

If you take this route, then check that the dealer reports your payments to the credit agencies. That way you can at least be helping your future credit score.

Pulaski

FWIW We're paying $366/mth over 60 months for a $21,000 (new) car, with no/negligible deposit and including taxes, and with a pretty good credit score (over 700).
High interest rates, on a new car?

We're paying, IIRC 1.9%, from Honda finance.
These two statements are inconsistent - if a dealer doesn't do a credit check then they are highly unlikely to be reporting to the agencies, because agencies only take reports from lenders who pay for the credit checking service. In any case, I suspect that even flea-bag car dealers will do a credit check if someone has enough information to enable one to be done i.e. if they have an SSN, but their credit rates are still likely to be pretty high, …. unlike new car dealers' rates.

petitefrancaise

IAS will help you out once you are in the USA. As will Expatride.
Mazda have been exceptionally great with my clients for leasing a car.
Also Advancial Credit Union will give you a car loan at a fairly decent rate - May's rate was 5.6% for new arrivals/no credit etc. Ping me if you want a contact name.

Pulaski

Don't they operate Ford's expat finance program?

petitefrancaise

I think so, I don't like the dealership they work with here in Austin but I have had clients contact them after arrival for quotes. However, IAS is not a particularly cheap option, great if there is a specific car you want and don't mind waiting a few weeks for it or if you want the convenience of a new car practically straight off the plane.
I have to say though, in Austin the Mazda folks are pulling out all the stops for getting new arrivals into their cars. Often not even waiting for the SSN to arrive before handing over the car.

SpoogleDrummer

I think the rule of thumb is $18-$20 for each 1000 borrowed gets you a rough range for a 60 month loan term. You can then try and find a better deal or interest rate.

tom169

Save up some money and pay cash for a car.

Pulaski

FIFY.

With the other obvious exception of buying a home, I think that the purchase of a (reliable, but not necessarily new) vehicle is one area where borrowing to buy makes a lot of sense unless you live in NYC, or downtown DC, or perhaps within walking distance of your downtown place of work in a few other US cities - Chicago, Philadelphia, maybe Atlanta. And within the past 10-15 years Charlotte has been added to that list. But most US cities are not walkable, at least not year round, and many of them don't have much in the way of safe, and/or affordable, and/or desirable neighborhoods within walking distance of downtown, and typically in most US cities, public transport sucks, big time.

tom169

Meh, Uber, public transport (), or pulling together a few thousand and buying a 6 month beater would all work. OP's husband is on an L visa - shouldn't be at the poverty line.

Money is likely required to be put down for a lease or loan anyway.

Pulaski

Uber ≈ loan interest?

Both are out of pocket payments - so "money down the drain", and gone forever.

Guindalf

I guess you're suffering from selective reading comprehension! My post specifically talks about USED car dealers!

Also, the OP states that they are moving to the US in May. Highly doubtful they'll get the same rate as someone with a credit score of 700+!!!

Er, no again. One has nothing to do with the other!

When I first arrived and has no credit score, I would buy from a furniture store that advertised no credit check and 12 months same as cash. They reported the on-time payments and it helped build my score.

mrjt1986