Purchasing a Car
 

Hi All

I am new to the forum and I am relocating to the US on a O1B visa in June and I am looking to get. I have been looking at a number of options, but have a number of questions. And wondering if anyone had any advice questions are below and any help would be much appreciated.

• Lease vs Finance - What is better and makes more sense
• Has anyone used Expat Car Sales without a Local Credit History & Global Car Rental | International AutoSource before and are they good?
• Where is the best place to get insurance as someone from the UK
• I will be living in Providence Rhode Island and know there is property tax on cars there, but is there anyway around the extortionate tax. I think Providence is $60 for ever $1000 on the value of the car.

Any help much appreciated

Re: Purchasing a Car
 

I always thought leasing was for the mathmatical illiterate unless you can get a tax break.

Do a search, yes and yes.

That would depend on the State and your individual circumstances, shop around.

Property tax or sales tax?

Re: Purchasing a Car
 

There are several of us on BE who have purchased or leased via International Autosource. I purchased from them. Personally I highly recommend them if they have or can order the vehicle you want.

They ordered a Jeep Grand Cherokee for me and it was delivered to a local dealer for collection. It was exactly as ordered, at the dealer two days before the delivery date so they had time to check and prepare it.

Re: Purchasing a Car
 

I bought my first car in the US through International Autosource, and I can't recommend them strongly enough. In fact I recommended them so often that one of their sales staff asked who I was and wanted to speak to me! :lol:

As a side benefit, buy through IA on finance and your payments are an excellent way to start building your US credit history.

Some people swear by leases, and they seem to work for some people, but leases come with a per-mile charge after x,000 miles (usually 12,000, 15,000, or 20,000), and the extra charge for that can build up very fast - and you will likely drive many more miles in the US than you expect. Driving 30 miles for lunch or 50 miles for shopping will probably very quickly become "normal" for you.

Also with leases, at the end of the lease period you are typically charged for marks and scratches on the upholstery, trim, and bodywork, and also for turning in the car with "unapproved" (non-premium) tyres, or if the tyres are deem heavily worn, which is a long way short of them being worn out. ...... Or you can pay extra up front to avoid the "scratch and dent" charges. ..... Leases can mean charges, charges, and more charges. :(

Re: Purchasing a Car
 

Thanks everyone so much.

I have never leased a car before but was contemplating it due to the time that I would be in the US and not sure if I was going to settle for good.

In regards to tax on the car it is a property tax and not a registration tax.

https://www.providenceri.com/collect...r-excise-taxes

Is there anything else I should look out for. They also mentioned something about insurance and being able to bring my history over from the UK. Is this something you have experienced?

Re: Purchasing a Car
 

I am amused at your use of the word "extortionate." Here in California, the annual "registration fee" is $46.00 and a "vehicle license fee" in lieu of property tax of .065 %. When we purchased last year, we paid first year vehicle registration/license fees plus the sales tax.

Fuel is also subject to excise and sales taxes. [BTW, I am annoyed that my diesel car pays more FET since the rate was set back in the day when the only diesels where trucks and buses which cause more wear to the highways than cars. At least at present, diesel is quite a bit cheaper than petrol. Quite often it is a little more. But I digress.]

Re: Purchasing a Car
 

Has anyone used them for insurance too and bringing your no-claims over from the UK?

Re: Purchasing a Car
 

Just still trying to muddle my way through all of this. Providence Rhode Island has $60 tax per every $1000 on the car. Obviously that can influence heavily what car to purchase based on budgets.

Thanks

Re: Purchasing a Car
 

There are leases and then there are leases. You point out some of the pitfalls -- and often restrictions are added on to give an artificially low monthly payment IMHO.

I have never personally leased a car -- although I've had two leased cars via a firm I used to work for. Both were "open end" leases. One way to avoid the mileage and condition charges is to pay the residual and the end of the lease and buy the car. The first car was one I was happy to return at the end of the three years. [Lincoln LS which was a good car, but aged badly]. The second car was one we really liked and the residual payment was quite a bit lower than market value. [Which is often the case with expensive Kraut cars]. My better half still drives that 2004 BMW 525i.

If one is eligible for a credit union, their rates are quite reasonable.

Re: Purchasing a Car
 

I am not sure what your point is, because you don't have VAT to pay, and $60/$1,000 is only 6%. There may be valid criticisms to be made of taxes in the US, but calling taxes on the purchase of goods as "extortionate", is not one of them. :rolleyes:

Re: Purchasing a Car
 

Sorry I do not think I have explained myself clearly and probably shouldn't have said extortionate as it was rude. :o I was a little shocked by the tax situation in Providence.

As far as I know in RI specifically and Providence the tax is yearly. So if I spent $45k on a car the first year would be $2700 and then what the $ value would be according to the market every year after that.

Coming from the UK you purchase or lease a car and that is it, barring the yearly road tax which is as much.

Re: Purchasing a Car
 

As OP stated, it's a property tax on vehicles in RI. Due every year on the value. I've known people to turn down jobs in RI because of this and other tax issues. No idea what they would have been paid.

Re: Purchasing a Car
 

OK, yes I see. ..... There is a similar, but much lower, annual tax on value in NC, but it drops off very quickly on a predetermined depreciation schedule. ..... The annual tax on our 2003 Accord is now, IIRC, $26. :lol: ...... So you might look into how quickly the annual tax on value declines.

You may also find that some other tax in RI is disproportionately low, so it may be swings and roundabouts. In truth all states get your money one way or another! :frown:

Re: Purchasing a Car
 

I thought most states had such a tax -- though I realize that is because every state that I have lived in has had an annual property tax on autos! Happily one of my cars is now 26 years old and the tax is down to about $35 per annum.

Re: Purchasing a Car
 

He is complaining about the tax rate, I assume there a re a lot of banagers registered in RI and the nicer vehicles are registered elsewhere.