International Autosource: Car Financing/Leasing
 

Folks,

After coming across a few good notes on BE related to the car financing/leasing through International Autosource (www.intlauto.com), I’ve made enquiries and received the following quote:

1) To finance the vehicles for 36 months based on a $6000 down payment, the monthly investments will be:
Ford Focus 2013 P3F 4dr Sdn SE (2.0L GDI I4 flex fuel engine) = $360 pcm
Ford Explorer K7D FWD 4dr XLT (3.5L Ti-VCT V6 engine) = $851 pcm

2) To lease the vehicles for 36 months based on 12,000 miles annually:
Ford Focus (same specs as above), $2000 down payment, $255 pcm + $25 (CA tax)
Ford Explorer (same as above), $3500 down, $396 + $45 (CA tax)

The registration would cost around $500 for both.

The question is, is this reasonable comparing to the options open to a newbie with no credit history and/or inadequate petty cash to buy something ‘proper’ outright? Or should I buy an old banger with the cash I have for this purpose (around $7K) and establish a credit history for a better deal later on?

Although, I’m not a big fan of Ford vehicles (we currently have a Range Rover sport -company car, and a Merc C class, personal) but the above fits into my needs and budget, and before I put myself through this I thought getting the views from the more experienced on the ‘bored’. I'm considering the leasing option and may only go for the explorer for wife and get a rental car for work related commute as needed as the expense is fully reimbursed.

Many thanks in advance for your views and guidance on this piece.

P.S: For those who are not aware of Intl Autosource and their program, you have to place the order and pay the deposit before you move to the US.

Re: International Autosource: Car Financing/Leasing
 

I used IA, and found them price competitive, and many do; a few others have found a better deal, though IMHO, not much better. There is the added plus that you'd be establishing credit history from the moment you arrive, and it is one less thing that you have to worry about when you arrive.

So far as the buy v lease decision goes, unless you know are going to live close to work, shops, school etc., you'll likely find that you'll use up your 12,000 mile allowance fairly quickly and the penalty rate will soon hurt.

And for what it's worth, Fords are fairly nice these days - Ford is pushing its vehicles up-market a little, and they are well put together, and have a nice appearance and "feel".

Re: International Autosource: Car Financing/Leasing
 

Buy option seems a bit pricey, but then no credit history.

12K miles is nothing though and you'll easily kill that if you aren't walking to work, so check what the overage is.

BIL who has a lease for cheap as he went 12K miles because he lived about 3 miles from work and he had to beach the car for the last 4 months of the year to avoid hitting the limit and just used his girlfriends car whenever he could.

Re: International Autosource: Car Financing/Leasing
 

Many thanks Pulaski.

The quote is definitely competitive compared to what the leasing companies offer here in Dubai. For something similar in Dubai, one would pay twice as much than what the IA is offering albeit it’s much cheaper to buy here on finance – no tax and low interest rates et al... and totally agree with the credit history piece.

I am concerned about the mileage allowance. It is unlikely that the wife would go over the 12k whilst doing the daily chores but I can imagine myself clocking almost 21k annually. I have asked the IA if it’s possible to increase the mileage allowance if I decided to lease two vehicles, I'm hoping for a positive response.

I agree that the newer fords do have a nice appearance and "feel", as well, affordable and reasonably reliable. The one problem with the Explorer is the cargo room as compared to others in the same class e.g. Chevrolet Traverse, Buick Enclave, Hyundai Santa Fe etc. It’s a shame the IA have a limited vehicle selection otherwise a Chevy or Buick would be a preference.

Re: International Autosource: Car Financing/Leasing
 

Thanks Bob. I agree with the 12k allowance being too low in the US. Back home in the bonnie Scotland, the average mileage was 8k per ann but that’s mainly down to the fact that there isn’t much to do/see in England :p

I am hoping that the IA can offer a more practical mileage allowance.

Re: International Autosource: Car Financing/Leasing
 

We've had our car for 10 months, work at home, have most things we need within a few miles, and yet are up to 14,000 miles already. However, we do do a 120 mile round trip once a fortnight on average.

Re: International Autosource: Car Financing/Leasing
 

We practically go no where and still easily bang 15K on the car, doing nothing.

Grocery shop, the odd kids play group and especially if you want to go out and see anything of the country that is outside of your neighbourhood.

Of course you can get a higher mileage, but the monthly cost will be higher.

You just need to figure out if that will be more than the expected spend on the overage with a lower limit.

Re: International Autosource: Car Financing/Leasing
 

My Explorer has been pretty good through years of car-pooling kids to school/activities and there is enough cargo room for me.

Re: International Autosource: Car Financing/Leasing
 

Interesting.

I just did a rough estimate and it does seem that the mileage is more likely to be in the region of 24K - 27K, particularly in the first year considering that when you moved to a new country then there is a lot more accumulation due to ‘visiting the attractions'. Suddenly, living near the BART becomes more important!

I will dearly miss the cheap gas as well, I’ve always tip the guy filling the fuel – things will never be the same again.... getting the willies already!

Spot on, I'll do just that once I have recieved further information from the IA.

Re: International Autosource: Car Financing/Leasing
 

We went to the local ford dealer today, in Dubai, and the standard explorer (5 seater) does have a decent cargo room however the 7 seater is a bit tight space wise. Also, I doubt the adult would feel comfortable in the third row. The Chevy in comparison is spacious all around and has the usual gadgets to match any other mid size SUV in the same class. I noticed that the Explorer is cheaper in the states, the full specs gizmo here in Dubai was around AED 205,000 (approx $55858) the IA is offering the same for around $38K.

Re: International Autosource: Car Financing/Leasing
 

Is that the sales tax included?

Also figure in town property/excise tax or whatever they call it. I've no idea what it is in CA, but down my way it's $25 per every $1K bluebook value of the car, every year. It's basically the road tax, but each state does it differently as well as calling it different things.

Re: International Autosource: Car Financing/Leasing
 

I don't know. I personally wouldn't want anything bigger as it already feels bus-like and uses a lot of gas. Most of the time I have the 3rd row folded down, although the seating is OK for me (I admit I'm on the short side).

Re: International Autosource: Car Financing/Leasing
 

The sales tax is included but please see below for more accurate information/figures (this is for the Explorer):
The total vehicle price on the IA invoice/quotation is $33,274.00:
Base Price = $30,474.00
Total Options = $1,905.00
Vehicle Subtotal = $32,379.00
Advert/Adjustments = $0.00
Destination Charge = $895.00
TOTAL VEHICLE PRICE = $33,274.00

The sales tax in CA is 9%, so the tax would be around 2994.66, taking the total cash price to $36,268.66, add another $500 for registration to this and we get the total drive home price. Permitting there are no other ‘hidden costs’, the Explorer is fairly discounted through IA than buying outright in Dubai from a Ford’s dealer.

Nothing is mentioned around the excise tax etc but if it’s an ongoing thing i.e. paid annually to Uncle Sam then it would not be included on the invoice. I guess the bluebook value of the car would be $33,274.00, and the excise tax would be around $906.71 p.a (if we use the $25 per every $1K as an example, it could be less or more in CA though - also there could be a CO2 emmissions related tax in CA ??:confused:). if it's like a road tax then presumably I would have to pay this (to the dealer ?) even if I'm leasing the vehicle, right?

Re: International Autosource: Car Financing/Leasing
 

We don't have that excise tax, just an annual registration fee.

Re: International Autosource: Car Financing/Leasing
 

Quality :thumbsup:

Hard to imagine the CA missing out on the opportunity to further squeezing the punters. The excessive taxes in CA reminds me of Ryanair’s ridiculous cost-saving ventures. :eek: