matrix1781

Hi

I am relocating to Houston from Aberdeen, UK in March 2015. Among many other things, immediate and long term transportation are obvious issues. Local HR has recommended a company that specialize in Expat car financing and I am being asked to put down a deposit and the interest rate is around 5.5%. what is the members' experience in trying to get finance by your own. Are there many companies that specialize in expat car finance for purchasing and leasing. We are thinking of buying one car before we arrive through this group and purchase a second hand car once we arrive for the wife. Did a search and the choice for used cars seems to be huge but not a lot of results for expat car financing at better interest rates for purchase. Any advise is welcome.

Thanks

Bob

International Autosource seems to be the main one people talk about.

Getting car finance is actually pretty easy, but with no credit history, rates won't be good, but that will be true for pretty much everything.

Certain manufacturers have their own expat programs that range in quality, BMW, VW and a few others.

Plenty of recent car threads though to browse through.

Pulaski

A vote for International Autosource here. Getting credit for a car after you arrive might not be easy, and being able to cross an item off the list of things to do after you arrive (get a car) is in itself a huge plus. .... With IA you must sign the contract and pay a deposit before you arrive in the US.

Used cars are expensive relatively so if you're thinking "nearly new" for your second car, just biting the bullet and buying a second new car one might be the way to go. Most people drive like lead-footed apes here and so buying any average car (Ford, Chevy, Honda, Toyota, etc.) used might not be the best idea. It might be a bit different buying a premium brand car used.

matrix1781

thank you Bob, Pulaski

I did approach International Autosource for purchasing one car. I tried to get a leasing option for the second car but leasing looked like waste of money. so I am caught in between buying a run about cheap used car (second car) once in US or bite the bullet and buy the second car as well through Autosource

Pulaski

Be careful, cheap cars are usually complete junk. Anything less than $5k is likely to need almost continuous repairs and maintenance, and probably have over 100,000 miles on it. Cars are often driven a long way here, but they don't last forever. That said I bought a Honda Accord new in 2002 and I still have it, though it is just a couple of weeks from reaching 280,000 miles! The ONLY times it has ever let is down (stranded) was the two times the battery failed.

Mr Weeze

People also have used the VW expat scheme successfully.

http://britishexpats.com/forum/usa-5...scheme-749465/

Owen778

Cars in Houston, I'm guessing also in the US generally, seem to retain value for longer than they do in the UK.

When I bought my first commuting car here, we at first thought I should buy second-hand because I hadn't driven in the UK for years. However, we soon realised the choice we had was between new, second-hand that was almost as expensive as new, or cheap second-hand that was old and unreliable. We bought new, and don't regret it.

FinnDiego

Yeah, German "premium" cars seem to depreciate at least. Probably for a reason, but luckily they also have decent Certified Pre-Owned programs. Once the CPO warranty runs out I'm planning to run away from my second Audi too!

I second the other comments that buying a slightly used Toyonda Cirolla or Camcord doesn't really seem to make sense. You'll need to go properly old or buy new.

matrix1781

I read somewhere that if someone (US resident with credit history) co-signs the loan, you can get finance for low interest rates from local dealers. Is this true? I do have couple of friends in Houston who will easily co-sign. This would mean that i wont be restrcited to Auto International and look at various dealers once i arrive in Houston. I t depends on how true this is?

Pulaski

I think it's fairly common for parents to cosign for their children after they leave school through until the get their first job after college. I don't know how a dealer would consider/ process a cosignatory from some "random third party".

JohnnyTooBad

I hope that's right Matrix, I'm in the same boat - moving over in January.

IA deals need:-

$1000 upfront
10% of the value of the car
8% of the FULL value of the car
$400 registration

Which all adds up!

Mr Weeze

I guess if you can find someone who is willing to be legally responsible for the car payments and they have "good" credit then it is possible. Are your friends willing to do this:

Car Loan Cosigner Requirements - CarsDirect

Pulaski

Would you put yourself "on the hook" for $20,000-$25,000+ of debt for someone who isn't a very close relative?

BTW You didn't mention insurance. ..... Consider yourself very lucky if you can find insurance for less than $2,000/ yr when you first come over.

JohnnyTooBad

Hey, I don't disagree, but the outlay can be significant. For a decent spec Ford F150 (what else in Texas) the initial outlay is north of $8k.

Sorry meant to say that's 8% tax on the full value of the vehicle, most states you only pay tax on the deposit.

There are other companies around which I'm looking into e.g. ExpatRide.com and some brands, i.e. Volvo offer there own initiatives as well.

Pulaski

Well maybe you need to reign in your expectations a bit and buy something you can afford. Just because you're moving to Texas doesn't mean you need a top-of-the-line truck the moment you step off the plane!

BTW the Volvo brand is dying in the US, sales are way down and sliding, so you're likely to get scrëwed on depreciation. There's even talk of Volvo pulling out of the US.