I’ve just moved to the US! I’m brand new and living in LA. And, of course, in LA - you need a car (or at least I do - my job is a lot more hybrid than I initially expected).
But - I’m not on a visa. I’m a freshly minted green card holder. I wasn’t here on a work visa prior to my green card; I’m not married to a US citizen and I don’t know anyone locally well enough to co-sign for anything (at least, not anyone who has good/established credit).
I’m working on it. I have good income but I literally have no FICO score. And because I’m on a green card I am not eligible for any of the foreign professional leasing programs.
Thankfully this month’s car rental will only cost me about $1,000 (somehow snagged a deal) - but last months cost more than double, and I imagine next month’s will probably be much more than this month as well.
Plenty of dealers have almost laughed me out the door; one tried hard to get me into a lease but the money factor was outrageous, the dealer added a ridiculously high markup and asked me to put down a minimum of $5k.
Most other dealers have suggested my only option is to buy a secondhand car for <$20k and pay about half the cost of the car as a downpayment. Problem is most of my savings went on the move. It’s not cheap to move, especially right now - and even moreso when your money value gets cut by a third once it is converted to USD.
I also don’t yet have a local license which is proving to make things like test drives and insurance quotes even more difficult.
So - I’m looking at options that aren’t going to require very high downpayments. ≤$3k is probably doable; I also don’t really want to put much/any downpayment on a lease (but, you know, the credit thing is making it almost impossible to do that).
I initially wanted to try a car subscription service, but they’ve almost all closed down, or have waiting list months long. I’ve been looking at Rodo as it seems like my only option to get into a half-decent priced lease. But I’m wondering if anyone has any other suggestions?
I would reach out to some credit unions about taking out a loan on an inexpensive used vehicle. Unfortunately, your credit history is going to make leasing impractical for a while, even if youre able to get approved. Youll want to view this first vehicle more as a tool for establishing your credit than anything else.
Buying the cheapest reasonable used car cash + small loan is the way to go for you. Paying off the loan quickly will bump your score up fast then you will be considered for decent rates. Open an account in a credit union, deposit all your cash there then talk to their loan officer .
Assuming it works for you financially, if you choose to finance something I’d do it for the shortest possible term.
This will result in a higher payment, but that’s exactly the point.
On your next auto finance application, they’ll look at your previous automotive credit history, and having a string of large(r) on-time payments will reflect more favorably than a string of small(er) on-time payments.
It’s on the list of many things to be done. Honestly I would have already done it by now if not for the fact that the DMV is closed weekends, the time required waiting at the DMV, the requirement to be accompanied by a CA licensed driver, the required documents to prove address (I’ve not yet even received a utility bill or a bank statement) etc.
If it was as easy as booking an appointment and turning up to do it, I would have already done it
I’ve had good luck going to a further-out/less busy DMV. For what you need, definitely not 2 hours or less before closing.
You unfortunately need to make your licence a priority - and consider taking an online defensive driving class as soon as you have it. Not having your hard license with a photo (which arrives later by mail) can really slow the rest down.
I’m driving on my local license from my home country - using rental cars (with full insurance), so it’s fine - just an extremely expensive way to go about it.
Do you really need a rental car though? Getting by via public transportation will save you good money that can go towards a nicer car that will also retain a portion of the money paid.
I’m curious, I’ve said this almost exact thing, but I am not aware of anyone who has actually taken this advice. Some even consider it an insult to their intelligence.
Everyone is different. When I first came into US in 2006, I used the bus to save for a few months, bought a nicer but not necessarily more reliable car later( 2000 323i). No uber, lyft to get around and no other service to earn money in a transition period either.
If I were a new immigrant now, I would try to find the cheapest way to work for uber/lyft/instacart if I could. As far as I know, they have minimums for age of the vehicle etc.
Buy a non-owners auto policy from an Insurance company. Progressive insures non-US license; so do others (like state farm but you’ll need to contact a local agent) but you have to contact them through an agent. Progressive sells online to non-US license as of 2016. That’s one way you can save money by just buying collision from rental. I don’t remember if non-owners policy lets you have full coverage. But I am sure they provide liability insurance (aka in some countries “third party”) as of 2021
A lot of new immigrants with high paying W-2 jobs managed to get financed by providing job letter or salary certificate or similar nature docs to dealer and get financed with either huge downpayment or high interest or both.
Ask your HR if they have corporate contracts with Enterprise/National; that can save you a lot of money since corporate don’t vary like regular rates.
It is downright impossible to lease without a co-signer; don’t bother you’ll be destroying your credit with 20 HPs or an insane lease that makes no financial sense. You’d be much better of financing for 1 year, have an auto loan on your credit and then apply for a lease. Try Credit Unions; again ask your HR if they have a partner CU otherwise try your local one.
Also lookup AMEX The Credit Passport powered by Nova Credit; they help you transfer history to US AMEX ONLY, if you’re from one of the qualifying countries: Australia, Brazil, Canada, the Dominican Republic, India, Kenya, Mexico, Nigeria and the United Kingdom.
I was in a similar situation, so what I did, I had to pay the whole lease in one payment - this way also they’ll not put you in tier 3 and you save the high markup. I got Cadillac 2019
But, I already had FICO scores and US license.
My suggestion: either try to get a 1.5 year lease that you can pay upfront - doesn’t have to be Cadillac. Check if other cheaper brands also offer.
It will also help to build your credit score
Get a local driving license
Get a credit card and start build your credit.
Otherwise, get a cheap car and try to get even a small loan to pay it, so you also build your credit
