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Getting a car as new resident.

Getting a car as new resident.

Old Jun 11th 2019, 3:34 pm
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Default Getting a car as new resident.

Hi all. We moved to Orlando beginning of May. We’ve got everything sorted (SSN, checking account, credit card, accommodation etc) but struggling to get a car as we haven’t built up enough credit yet. The ones that will offer a car are over $500 a month because of it. We’re currently paying nearly $1000 a month rental which wasn’t expected. Any tips on how we can get a new car lease or purchase whilst we’re still building up our credit score for under $250 a month?
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Old Jun 11th 2019, 4:39 pm
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Default Re: Getting a car as new resident.

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.
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Old Jun 11th 2019, 5:07 pm
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Default Re: Getting a car as new resident.

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.

Last edited by SpoogleDrummer; Jun 11th 2019 at 5:09 pm.
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Old Jun 11th 2019, 5:20 pm
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Default Re: Getting a car as new resident.

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.
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Old Jun 11th 2019, 5:20 pm
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Default Re: Getting a car as new resident.

Originally Posted by SpoogleDrummer View Post
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. .....
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).
Originally Posted by Guindalf View Post
Personally, I wouldn't do it because the interest rates are usually pretty high, …..
High interest rates, on a new car?

We're paying, IIRC 1.9%, from Honda finance.
.... Generally, they charge more because they don't do a credit check and take a bigger risk on lending the money. .... then check that the dealer reports your payments to the credit agencies. That way you can at least be helping your future credit score.
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.

Last edited by Pulaski; Jun 11th 2019 at 5:34 pm.
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Old Jun 11th 2019, 5:44 pm
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Default Re: Getting a car as new resident.

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.
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Old Jun 11th 2019, 6:00 pm
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Default Re: Getting a car as new resident.

Originally Posted by petitefrancaise View Post
IAS will help you out once you are in the USA. ....
Don't they operate Ford's expat finance program?
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Old Jun 11th 2019, 6:05 pm
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Default Re: Getting a car as new resident.

Originally Posted by Pulaski View Post
Don't they operate Ford's expat finance program?
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.
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Old Jun 11th 2019, 6:18 pm
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Default Re: Getting a car as new resident.

Originally Posted by Pulaski View Post
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).
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.
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Old Jun 12th 2019, 12:28 am
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Default Re: Getting a car as new resident.

Save up some money and pay cash for a car.
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Old Jun 12th 2019, 2:25 am
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Default Re: Getting a car as new resident.

Originally Posted by tom169 View Post
Save up some money and pay cash for a car. Meanwhile walk or ride a bicycle everywhere.
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.

Last edited by Pulaski; Jun 12th 2019 at 2:31 am.
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Old Jun 12th 2019, 2:33 am
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Default Re: Getting a car as new resident.

Originally Posted by Pulaski View Post
FIFY.
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.
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Old Jun 12th 2019, 2:37 am
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Default Re: Getting a car as new resident.

Originally Posted by tom169 View Post
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. …..
Uber ≈ loan interest?

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

Last edited by Pulaski; Jun 12th 2019 at 2:47 am.
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Old Jun 12th 2019, 2:56 pm
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Default Re: Getting a car as new resident.

Originally Posted by Pulaski View Post
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.
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+!!!

Originally Posted by Pulaski View Post
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.
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.
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Old Jun 13th 2019, 12:23 am
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Default Re: Getting a car as new resident.

Thank you everyone for your input, popped in to Mazda today and should be able to get one from there. They were really helpful. From experience am I better off waiting for a Fourth of July sale or do prices not change that much?
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