How to get a car in the States. There are four ways: buying a new one for 100% cash, buying a used one for 100% cash, credit, and leasing. There’s nothing to tell about the first two since it’s all clear. Talking about credit is pointless because, for someone like me, they don’t give it yet in the places I’ve visited. If I suddenly find a place that gives – I’ll make a separate post. And this post is about leasing.
Today I visited four dealerships: Koons Toyota (http://www.koonstoyotatysonscorner.com/), Safford Fiat/Alfa Romeo (http://www.alfaromeousaofvienna.com/), Stohlman Volkswagen, and Stohlman Subaru (http://www.stohlmanauto.com/).
The situation is as follows: I have a visa for three years, have a contract, will have a Social Security Number (SSN), and will have a permanent residence address, I want a car at the end of the month.
At “Toyota”, Indians politely refused. Won’t give leasing, banks won’t give credit. At “Fiat/Alfa Romeo”, they politely refused too but are ready to sell a used one for $7K. Both dealerships at Stohlmanauto said they’re ready to give leasing.
For a Volkswagen leasing contract, they need: 1) job offer, contract, or a letter from your employer 2) a copy of SSN or a letter stating it’s being processed 3) a copy of the visa with the expiration date 4) three letters from colleagues saying I’m reliable – non-binding 5) salary must be higher than four car payments per month (strange requirement, payment for the car – hundreds of dollars per month) 6) salary over $45000 per year 7) proof of residence and phone number.
Subaru also requires local driving license and insurance. Probably VW wants the same, but they didn’t explicitly say. Subaru promised to think it over and possibly amend the terms for me.
They give you the car in three days. Oh yes, plus you need to make a payment.
Interestingly, on the VW website, it is mentioned that the initial payment for a VW Jetta is less than $2000, but then the salesperson added an extra $820 for freight, $599 for dealer processing, $914 for sales tax, which seems to be for the entire car. Altogether, you have to shell out $4300 upfront, then pay $169 per month. For the Passat, same upfront but $239 per month, and for the Tiguan $199 per month, but initially about $500 more.
Meanwhile, Subaru asks just $1700 upfront for the simplest model, plus some taxes. The guy promised to send the details by email.
Here I’m not even counting insurance – which must be paid separately.
The perk of leasing is that for three years, you only have to pay for gasoline; car maintenance is free. After three years, you have to return it or buy it out at the residual price (about 50% of the initial cost).
Subaru is more satisfying, of course. But it’s already clear that I shouldn’t stop visiting other dealerships.
Hi, I'm Rauf Aliev. 