Bob

Every state seems to call it something different and come up with the rate differently. Though you're lucking if you only get the one tax.

For us, the excise money goes to the town you're registered in on the state census and the registration goes to the state.

Last time we bought a car, there seemed to be far more hidden costs that amounted to a few hundred extra, can't remember what they are, but there was the cost of titling the car too.

Dealer/IA should give you an idea of the annual costs though, the inspection, taxes and the like.

McZaki

Ok, I’ve received further information.

To lease the Ford Explorer for 36 months based on 19,000 miles annually, the monthly cost would be $466, so an increase of $70 for the extra 7k miles.

Other costs:
A) CA Sales tax - If leasing, the estimate the taxes to add, $45 per month on the Explorer and $23 per month on the Focus. If purchasing the car, the sales tax will be 9% of the vehicle value.

B) Registration will cost approximately $500 every 3 years

C) Inspections are done yearly at an approximate cost of $50

D) Maintenance package is optional at a cost of $800 that will cover all required servicing over 3 years.

The IA advisor suggests going for the purchasing option if I need more miles - which I consider a reasonable advise. Also, the total insurance cost for both vehicles is likely to be in the region of $1500-$2000 annually, permitting that my missus & I have a clean driving history and have been driving for 5 years or longer.

Interestingly, despite asking a couple of times, no information on the overage – I’ve asked them again because it may just be an oversight on their part.

I'm thinking that if I get two cars then 31k combined mileage allowance should be sufficient. Alternatively, I’ll just get the Ford explorer for now and get the 2nd car when the credit history is more favourable and in the meantime use BART/CalTrain/rental car for work related commute.

I have two questions:
1) Generally, how long does it take to build a good credit history?
2) Do you think its sensible paying $511 per month for a Ford Explorer? Can I afford - perhaps yes, but would you pay anything like that?

P.S: I can get the Maintenance package worth $800 for free if I place an order for two vehicles by Wed 6th March - Apparently , Ford is running a promotion until Wednesday

N1cky

We clocked up tons of mileage when we lived in LA, but here hardly do any. We bought a new Jeep in July last year, we've driven for weekends away to LA, Yosemite (x2), Napa, Lassen NP, plus had the usual days out in SF, Santa Cruz... Current mileage is 6,400. We only really use my hubby's car for his commute to work, and slinging the bikes on the back, if he has done 4,000 miles this year I'll be amazed.

I saw your post further down with regards to 19,000 miles. I would think that would be doable with your commute to work, as if you are getting close to clocking that, you can always switch to your wifes car for a couple of months so you don't go over.

Bob

It takes 6 months to start building history, but generally won't mean anything till 12 month mark. You won't really be getting "good" credit till 2 year mark.

The wiki does have a lot of info on the whole credit history malarkey. Best jump starter is the AmEx global transfer for a credit card and then a car loan to get a couple of varied lines of credit.

GeoffM

As per Bob. We're on the 10-11month mark and have noticed things improving - but not there yet. We started getting credit card offers after about 6 months, a couple of which we applied for and actually got. But other places aren't too impressed by insufficient history. We're off this afternoon to prove ourselves at various utility offices (ID, put down deposits).

I personally don't like locking myself in to long term contracts of any kind where possible. Exceptions for house rental/mortgage (necessary) and low-cost lockins ($240 early termination fee for Verizon, going down by $10 each month, ie 2 years). We bought our mobiles outright and the plan is month-to-month.

All depends on how comfortable you think you'll be. We did originally plan to use Autosource but in the end it fell through - and I'm glad it did. With a messy wife and two young kids, there was no point in having a brand new car anyway. So we have two used cars, didn't pay more than $8k including taxes/fees etc for either of them, and it doesn't matter if they get trashed.

McZaki

Thanks N1cky.

I think switching cars is the right solution if the mileage is extraordinarily high and that hopefully we can avoid considering that wife wants to live in a walkable area particularly close to school and day care, and grocery would be a plus.

McZaki

Many thanks Bob & Geoff.

That’s a long time, it seems by the time we are credit worthy we’ll be heading back to either Dubai or Edinburgh – highly unlikely that the US will tempt us for longer than 3 years particularly considering the lost in earning am going to suffer as a result of the move, the only caveat is around how settled and steady the kids are at the time.

On the AMEX piece, I have just received my corporate AMEX card through work – does this help?

Bob

If it's not a personal one, then no, not really.

The global transfer program says you must have held the card for 12 months to do the transfer, some people have managed it with much less, from 3-7 months worth, but a couple of people recently have also said that AmEx have become a lot more strict about the 12 month rule.

McZaki

I totally understand that, we had a bad experience related to finances after graduation and we decided never to put ourselves in such a situation again, yet wife & I ended up buying two fairly expensive houses and cars on finance mainly due to our good banking jobs – well she was an underwriter and I was just messing about in finance and with finance systems. However after the kids, we felt financially squandered after the loss in income and despite my reasonably high income I had to sell one of my houses to ‘balance the books’ – horrible memories...

Not very comfortable tbh due to the reasons mentioned above.

With due respect, @ the messy wife and kids - I have similar issues

I have $7 to $8k cash for this purpose, great if we can get something reasonable/reliable for that money, definitely a sensible option –I felt bad asking wife to switch from a new car she drives in Dubai to a second hand in the US hence exploring options with IA but I guess she would understand.

McZaki

It's issued to me and registered to 'my' US address (well I gave my sister's address in WI as they needed a US address for delivery), I am not sure if it's personal but I think I have to clear the balance in full and claim back through expenses - however it's possible that the outstanding balance is automatically cleared. I can earn miles and get other 'goodies' through spending on it etc.

AMEX has arrangements with our firm so it is possible that it’s no good for building personal credit history.

McZaki

got the overage: On the Focus it is .15 cents per mile and on the Explorer it is .20 cents per mile

Bob

That sounds about right....now it's just a case of doing the maths.

Really hard to figure out the miles in that first year though as you always end up doing more than expected in the first year just exploring and the like....but if you're think of doing 19K, that's about $850 extra v $1400/1050 extra on the mileage, so probably worth it on the commuter car.

Though with cost of petrol and mileage cost, you'd probably be better off in the Focus than the Explorer.

Bayleaf_01

I have a 2012 Ford Focus SE 4dr sedan 2.0L financed through IA, we put about £3500 down and have a 24 month lease at $90 per month.
We leased a Fiesta through them as well, but it was too small, so after 8 months I traded it in at our local Ford dealer and leased a 2013 Ford Explorer 4WD XLT. $1200 down and $335 a month.
We have L1A visa which Ford like apparantly - not sure if that made a difference with IA.

I absolutely love my new Explorer, much more suited to the American lifestyle, but it guzzles the petrol - best of both worlds for us. Big car for moving everyone around and the bad weather (it is Michigan) and a fuel efficent car for the running around.

McZaki

Great piece of information, many thanks.

Interesting to note your fairly competitive arrangements, difficult to swallow that the same vehicles in California are costing more than Michigan - personally I think it should not unless the vehicles are loaded with gadgets and that's what they currently have in the inventory.

I am moving on L-1A, so far IA have not asked - I'll mention this and see if they can give a better quote. Thank you again for sharing your experience.

McZaki

Sorry I just noticed a ‘discrepancy’; if you are paying $90 for the 2012 Ford Focus SE 4dr sedan 2.0L that’s like (90x24= 2160) + 3500 initial deposit = $5560. If purchased on finance then I doubt that IA sold a brand new 2012 for $5560 only! – The list price for the entry level/cheapest 2012 model was around $16K, the 2013 model is around the same price.

If you leased the Focus for 24 months then I would say it’s a very good deal compared to the $255 per month they have quoted me.