eg76

Hi all, we are in the process of relocating to Los Angeles and have been put in touch with International Auto Source by new Employer in US to sort out cars. Having spoken to them, their prices are significantly more expensive than direct from the Car Manufacturer. In most cases 40% - 50% higher. I appreciate that they would be more expensive (due to higher credit terms etc.), but not that far off.

Does anyone have any bright ideas for circumventing these types of organisations when we have no credit history in the US? Both of us are/will be employed in the US and have good UK Credit History.... Or do we have to just suck up the extra costs...?

Any help greatly appreciated.

Pulaski

I am not sure what you mean by "direct from the manufacturer" most manufacturers don't sell directly to the public, and in many states it is illegal for them to do so anyway.

I am also not sure which prices you are comparing, and do they include sales tax - which will impact the price you pay. There is also a significant difference between the "cash price" and the credit price, which substantially explains the difference between 2% dealer finance and why a car loan from your bank will be around 10%.

eg76

Sorry - to clarify.

We are finding that although employed we have no credit history, therefore are unable to get lease/finance deals direct from car dealerships. The alternative we have been given is to use an Expat Car Dealers, but their prices are astronomical. I was wondering if anyone had any experience of getting round this...../had any bright ideas.

lansbury

I am surprised you find the prices from IA expensive. When I purchased from them I got a very good price that no local dealer in the area I was moving to could match.

Pulaski

Likewise! .... Which is why I asked (as yet unanswered) questions as to where the OP was getting his numbers/ what he is comparing with what?

eg76

We have family in California who have enquired from local dealers how much certain cars would be. I have then asked IAS to price up similar cars and their prices are 40% - 50% higher.

I appreciate that there is a premium to pay for our situation (no credit history), but I was wondering if there was any alternative to using a company like IAS?

Olly_

I found them very expensive too when I got quotes for various cars in 2015.

In the end I just bought a car with cash after arriving but I know that's not an option for everybody.

I believe some manufacturers have expat programs you can use when you get here, Volkswagen/Audi are one, and I think Mazda and Ford do it too?

Pulaski

I can't explain that, but why not try pricing some cars through the manufacturers web site, and seeing how they compare to the two sets of figures. IAS shouldn't be asking more than the web site price.

I suspect that either your relatives are being quoted for year end clearance models, OR for slow moving models (some dealers offer tempting prices in their ads that specifically apply to models that have "been in stock the longest"), OR quoted an unrealistically low price to get them into the showroom to sell them a more expensive vehicle, OR there are taxes in the IAS price that aren't in the dealer prices.

Those possible explanations are not mutually exclusive.

lansbury

Firstly IA use your UK credit history as that is where you buy the car from, so there is no premium for no credit history. Their UK office sells you the vehicle, when I did mine the US end was dealt with in a New York office. They ordered the vehicle directly from Jeep, to be delivered to a local dealer in Oregon.

When I purchased my Jeep in round figures I paid £32k for a £40k vehicle on the dealers lot in Oregon. When I picked it up from the local dealer they ask how come I qualified for a vehicle from IA as they only knew them as a company who sold to US military. They asked what I paid and told me the cheapest with all the kickbacks and discounts they could have got the vehicle from Jeep was £35k.

If the prices you are getting differ by 50% I would suggest something is getting messed up in the process.

Pulaski

EG76, please can you post some examples of vehicles and the prices you're talking about, specifying manufacturer, model, trim level, engine, year, dealer price and IAS price?

E.g. Ford Fusion SE 1.5 eco, 2017, $21,500/$22,500

petitefrancaise

Adding my voice here- we used IAS and yes, if you had a good credit history in the USA then you'd probably get a better deal. However, they aren't extortionate and you will probably find that you are being quoted for a better model than your family are.

You can negotiate somewhat with IAS, look at different models etc.

As mentioned VW/Audi and Mazda both have expat programmes going so you could investigate them and perhaps use their quotes to negotiate with IAS?

Karlosthecackle

my girlfriend and I used IAS when we moved here in 2015... the biggest advantage being i was able to start the order process for my F150 before we were even stateside.

Throw in the other benefits of cheaper car hire, car insurance (i have both our cars insured on a dual car policy for cheaper than some US friends pay) and the insurance for if your expat contract ends early and the additional cost isn't really that prohibitive

robtuck

I have only just recently used IAS and would concur that they offered decent value for money. I'm paying $313 per month for a 2017 Ford Fusion SE on a 3 year lease and for 20k miles per year. The last bit of info can be a big deciding factor in the price you are paying per month, many places will quote an exceptionally low annual mileage on a lease agreement.

BAF1983

When i received a quote from IAS it seemed like the monthly cost was slightly high, but the upfront payment seemeed very high (in the UK i would expect the upfront to be 3 x monthly costs), does this seem high to you guys?


2016 FORD EDGE TITANIUM 36 MONTH LEASE $6300 DOWN PAYMENT $493 PER MONTH WITH 12K MILES (STATE SALES TAX IS NOT INCLUDED IN THE QUOTE)

*EDIT - it was October 2016 when i got this quote so a 2016 car was the latest model at the time.

dave2702

When I first came over, CarMax had an "New Immigrant" package which basically meant no credit check and vastly over the top APR

But after a year once I had a credit rating I just applied for an auto loan for a much cheaper APR and bought out the existing Carmax loan