Quote:
Originally Posted by rajushank84 Thanks much, alam86. The location is San Jose, CA.
How do people manage to save money to buy cars so soon? From what I calculate, 80-90k per annum is considered a good salary (isn't it), which means 4.5k to 5k take home after taxes (isn't it), and cost of living everything included for a family comes to at least 4 to 4.5k (isn't it)?
Then, how are so many people able to afford the downpayment, tax and insurance of a car, not to mention monthly car payments? (ok forget gas, it is more or less equal to bus/train tickets). Do they get really long loans? Do they use the credit card for down payment? Or am I missing something or way off somewhere?
I am asking this because I'm seeing a lot of L1 & H1 folks drawing even less salary than what I mentioned, buying cars within six months of landing there. Just wondering what their trick is. And not to mention all those furniture costs.
What's the secret ingredient to car ownership in US, for a newcomer on L1? |
Wow - that is a lot of questions
. I'll try to answer to the best of my knowledge and tell you some of my experiences as well. I currently live in California too, so hopefully most of what I say is correct. Other T-BHPians - feel free to correct.
First off - since you will be living in California and will be here on an L1 - getting a license will be easier than other states. You will need to visit the DMV and give a written test [you will need to prepare for it - it is no cake walk]. If you clear that, you will be given a 'Temporary Permit'. You cannot drive alone with just that permit. However, if you already have a car license from India, you can drive using that license. I think there is a limit on the number of days you can drive with a 'foreign license' - don't remember how long that is. Could be 30 or 60 days.
You can also schedule a 'Driving Test' immediately, though it is unlikely that you will get an appointment immediately. It usually is a month after you call [at least in our DMV].
In this test, you will be asked to drive a car with a DMV officer with you on the passenger seat. He will basically 'test' you - ask you to do things like - 'move to the right lane now' or 'take a right turn ahead'. He will look for stuff like - are you within speed limits, using the indicator, looking at your blind spots on both sides. He will also ask you to 'parallel park'. This is the most difficult part and needs a lot of practice. Please make sure you don't drive your car or schedule a test until you are comfortable driving it in US conditions. Some of the rules here are pretty new to us [such as 'Yield on Green']. I know people who have gotten into bad accidents just because they did not know this particular rule.
You should get some friends/colleagues to help you out while you learn all the rules and driving conditions here.
About expenses in general, the salary you mention is good enough to live comfortably here. The amount you mention for cost of living is way to high. If you are spending that much - you are living a great life! Here is a breakdown of common expenses:
1. Rent. For a 1 BR apartment - $1200-1400. 2 BR - $1200-1600.
2. Grocery and other expenses - 1000$ [I think this is high too - should not need that much].
3. Car loan [if you get one]. Depends on which car you get and how expensive it is.
4. Car Insurance - Paid every 6 months. May work out to ~$100 a month.
Most people buy a used car when they land here. You can get a very good used car [Civic, Corolla, Camry or Accord - they're the most popular] for anywhere between 7K and 15K. If you are fine with cars with high mileage, you can even get good cars for 5K.
I know people who straightaway buy a new car, but the problem there is getting loans. You need to have credit history here to get a good rate. Unfortunately, you will not have any credit history here, so you will get a rally bad interest rate [can go as high as 19%]. You could still go for it and then pay it off in a few months. There are usually no pre-payment charges here. You can also get loans with zero down payment - i.e. nothing needed upfront. All charges are through the loan. Your first payment is also a month later.
Also look for loans that your company may provide. It may be on a lower interest rate.
About furniture, you will find a lot of 'Moving Sales' - especially in the San Jose area. A lot of people keep moving, and a lot of Indian folks move back to India. They sell all of their furniture at very good prices. I bought a lot of my home's furniture that way. Craigslist and Sulekha are great resources to find such sellers.
Hopefully this long post gives you most of the information you need
Feel free to post further questions and I will try to respond to the best of my knowledge!