[amitoj]

Originally Posted by chevelle

Your credit history will only show up when you go the financing route. In that case the difference would be say 3% to 6%. But if by paying 6% more you can live your dream why won't you. You can always pay it off early.

Is it possible to get your auto loan refinanced at a better rate once you have established some credit history (after about an year or so)?

Also, the more i keep looking at the CrewMax Tundra the more it keeps appealing to me. I have compared it dimensions with Acura TSX, Infiniti G37, 328xi, Q5, 4Runner and the Highlander as well. And none of these have the rear seat dimensions that the Tundra has. In one of the Tundra forums, one person asked whether he should go for double cab or crew max. One of the responses was:
"How well behaved are your kids? Because in a DC, you can just reach back and smack 'em. In a CrewMax, you'll have to pull over"

[vineethvazhayil]

Originally Posted by amitoj

Is it possible to get your auto loan refinanced at a better rate once you have established some credit history (after about an year or so)?

Yes, it will be possible to refinance your auto loan after you have some credit history. Also, if you have someone who can co sign on your credit app and has a good credit history (like your brothers/cousins), it would be a good idea as well and you will start off with a low rate straight away. Once you get here, also do some research on credit unions in your vicinity, they usually offer the lowest interest rates.

[vivekiny2k]

Originally Posted by amitoj

Also, the more i keep looking at the CrewMax Tundra the more it keeps appealing to me. I have compared it dimensions with Acura TSX, Infiniti G37, 328xi, Q5, 4Runner and the Highlander as well.

Whoa, when I read your initial post, I thought you mentioned the tundra in jest. if you need a roomy SUV, get a ford expedition, chevy suburban, or even Toyota sequoia. Trucks are made for heavy loads. yes, they have very good engine, transmission, brakes etc, but it's an overkill unless if you are planning to do this. Drivers are known to put 200-400 pound weights in the truck bed just for the suspension to behave well.

The only advantage of a pickup over a SUV is open bed that you can use to haul lumber etc from home depot. But for that you can rent their own truck for 25$ or so.

But then again, if your heart is set on Tundra, none of this is going to stop you .

[chevelle]

Originally Posted by amitoj

Is it possible to get your auto loan refinanced at a better rate once you have established some credit history (after about an year or so)?

Also, the more i keep looking at the CrewMax Tundra the more it keeps appealing to me. I have compared it dimensions with Acura TSX, Infiniti G37, 328xi, Q5, 4Runner and the Highlander as well. And none of these have the rear seat dimensions that the Tundra has.

Usually 13 months is the time to get it refinanced. By then you will have good history and you will get good rates. Credit Union is the way to go. I wanted to refinance mine but it went over 100k and no bank will refinance it at a good rate. So i am gonna pay it off.

Tundra is really good option if you are on the move and/or doing business where you need the bed most of the time. In your case you can go equivalent of Tundra and get a full size SUV if space is a major criterion. Say Escalade, Sequoia, Tahoe, Grand Cherokee and likes.

The SUVs you compared to are compact SUV and G37 and likes are entry level luxury segment sedan so they don't have good space too. So Tundra's dimension will appeal to you a lot. Compare it with its competitors and its at par.

What you can do is, once you are here, do a long test drive of Tundra and Sequoia. I think both are based on same platform. You and your family will love the difference.

Originally Posted by vivekiny2k

And as discussed, if you think you are getting a bad deal, you are always free to buy it out and sell it in open market.

Why would i buy it out if it is a bad deal and again sell it at a loss in open market as the value is going to come down and not appreciate?

[NinadJoshi]

Originally Posted by amitoj

Also, the more i keep looking at the CrewMax Tundra the more it keeps appealing to me.

The more I read into this, the more I am convinced you probably want the Toyota Sequoia, which is the "SUV" derived from the same platform as its pickup twin, the Tundra. Unless you are a hardcore redneck, you don't lug a missus and 2 toddler car seats, in a pick up

Kishor Kumar/Amitabh Bachchan famously said in Namak Halaal: "paraya dhan, parayi naar pe nazar mat daalo"...but still, I'm not intending to be nosy when I say please consider that the days of $5/gal gas are fast approaching, and you may want to keep in mind the Tundra/Sequoia twins give ~13mpg in the city and not more than 20mpg on the highways.

My wife's cousin @ Peoria Il, and an uncle @n Pittsburgh have a Sequoia each and these days I am guessing by the time the fuel nozzle recoils shut on fill up, their wallets have gone back by a cool ~$125

[vivekiny2k]

Originally Posted by chevelle

Why would i buy it out if it is a bad deal and again sell it at a loss in open market as the value is going to come down and not appreciate?

depends. usually leases are designed to recover upto one third of the price at the end of 3 years. Not all cars depreciate that fast. you can buy it out and sell it and recover some of your money. Here are lease terms for a civic. I am convinced that at the end of that period, a well maintained civic HF can fetch more than 12539 (money one will need to pay to buy it out).

Factor in time value of money and you will see you are getting it at a very low interest rate.

Closed end lease for 2012 Civic HF 5 Speed Automatic HF (FB2F6CEW) available from March 1, 2012 through April 30, 2012, to well-qualified lessees approved by Honda Financial Services. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $20,225.00 (includes destination, excludes tax, license, title, registration, documentation fees, options, insurance and the like). Actual net capitalized cost $17,574.16. Net capitalized cost includes $595 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $6,444.00. Option to purchase at lease end $12,539.50. Must take new retail delivery on vehicle from dealer stock by April 30, 2012. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year for vehicles with MSRP less than $30,000, and 20¢/mile over 12,000 miles/year for vehicles with MSRP of $30,000 or more. See your Honda dealer for complete details.

[chevelle]

Originally Posted by vivekiny2k

depends. usually leases are designed to recover upto one third of the price at the end of 3 years. Not all cars depreciate that fast. you can buy it out and sell it and recover some of your money. Here are lease terms for a civic. I am convinced that at the end of that period, a well maintained civic HF can fetch more than 12539 (money one will need to pay to buy it out).

Factor in time value of money and you will see you are getting it at a very low interest rate.

Here are some things that is not considered in above quote.

The terms of early termination could be very high. Example, what if the car gets stolen or totaled? In such cases, insurance pay-outs often fall far short of the balance due on the lease leaving you holding the bag.

Mostly monthly payment consists of depreciation and interest. The depreciation part of the payment is calculated by taking the difference between the cap cost and the residual (the total depreciation over the lease) and dividing it by the number of months. In effect, you are paying off the depreciation with equal payments each month.

We know that a car depreciates much more rapidly in the earlier years with the biggest hit occurring the day you drive the car off the lot. So when you terminate the lease before you have paid all of the depreciation, you will likely be required to pay the difference between what the car is worth and how much you have paid on the depreciation.

Again, all this make sense if one does 12k miles a year or less. If one exceeds, all this economics go out of window. For me its a big deal because i do more than 15k miles a year. One will have to be so conscious while doing any trip or something.

As for civic retaining its value, indeed it will, but then same cannot be said about other cars like BMW 328i or Focus or Malibu when bought on lease. Its like picking up the most reliable one, take it on lease and buy it out later.

Also some brand new cars like mini cooper, civic, focus and many other cars have interest rate of 0.99%. I don't think it can be beaten by leasing. My friend who got Genesis sedan had option of leasing. He decide to buy it on loan as he was getting it at 1.99%. Also chances of ending up paying more at 3 yrs was more even though Hyundai has assurance program that your cars are protected for value till 3 years.

We have to consider the Insurance also. Leasing companies tend to require higher amounts of insurance coverage than you may normally carry. This could impact your insurance cost considerably.

Also, you require higher than normal credit history to be eligible for lease. Otherwise you end up paying higher. The civic quote you gave is only if you are qualified. If not, you will end up paying more. And atleast from Nissan's dealership, i know that they require more than 730 of credit score to get a decent lease for a good car (Altima). A new buyer especially from outside USA won't have that credit score and so will end up paying more.

And finally i will say this, when you lease a car, you are renting it. The lease company retains ownership of the car and you pay for the privilege of driving (and maintaining) it. For many who have "owned" cars all their lives, this may be a psychological barrier. I am one of them.

[mohit]

Originally Posted by NinadJoshi

The more I read into this, the more I am convinced you probably want the Toyota Sequoia, which is the "SUV" derived from the same platform as its pickup twin, the Tundra. Unless you are a hardcore redneck, you don't lug a missus and 2 toddler car seats, in a pick up

Kishor Kumar/Amitabh Bachchan famously said in Namak Halaal: "paraya dhan, parayi naar pe nazar mat daalo"...but still, I'm not intending to be nosy when I say please consider that the days of $5/gal gas are fast approaching, and you may want to keep in mind the Tundra/Sequoia twins give ~13mpg in the city and not more than 20mpg on the highways.

My wife's cousin @ Peoria Il, and an uncle @n Pittsburgh have a Sequoia each and these days I am guessing by the time the fuel nozzle recoils shut on fill up, their wallets have gone back by a cool ~$125

I totally agree with this. Stay away from a V8 especially when buying new. You can probably get a decent deal on a used Lexus LX/Toyota Sequoia but they cost too much new and the resale will be abysmal if you decide to sell it due to higher gas expenditure.

[vivekiny2k]

Originally Posted by chevelle

And finally i will say this, when you lease a car, you are renting it. The lease company retains ownership of the car and you pay for the privilege of driving (and maintaining) it. For many who have "owned" cars all their lives, this may be a psychological barrier. I am one of them.

As I said, it depends. You can choose the right car with right lease if you are careful.

95% of my house value is with the bank. that doesn't make me any nervous about the ownership

[aah78]

Originally Posted by amitoj

IAlso, the more i keep looking at the CrewMax Tundra the more it keeps appealing to me.

Originally Posted by vivekiny2k

Whoa, when I read your initial post, I thought you mentioned the tundra in jest. if you need a roomy SUV, get a ford expedition, chevy suburban, or even Toyota sequoia.

But then again, if your heart is set on Tundra, none of this is going to stop you .

Originally Posted by NinadJoshi

My wife's cousin @ Peoria Il, and an uncle @n Pittsburgh have a Sequoia each and these days I am guessing by the time the fuel nozzle recoils shut on fill up, their wallets have gone back by a cool ~$125

@amitoj - fuel prices are rising. So yes, getting an SUV for the room is one thing but you'll be paying a lot at the pump.

A smaller SUV / Crossver eg. Honda Pilot, Toyota 4Runner, Nissan Xterra / Pathfinder might save you some money while providing a larger storage area.

[Gujarati]

Nice thread; I would like to emphasize on the interest rates on car loans to anyone that is new to USA and has no credit history. Building the credit history and getting loans is not as easy as it use to be 3-4 years ago. I know this has been said before but it is a point worth emphasizing. Best is to plan for one practical car with great resale value and without spending too much. Once you get the hang of the system go out and get your dream car or two.

Also insurance rates and used car markets differ significantly from one state to another. So if you mention the state and city you are going to like the person who started the thread that would help.

Insurance premiums can be a big cost. On one car you can pay anywhere from $100 - $200 per month if you are new. It can be that much even if you have some driving history in certain states.

So if you plan for two cars instead of one keep in mind your already high insurance cost will double. Also most times insurance companies charge you same rate on insurance regardless of whether the car is used or new.

I am in located in Dallas, TX and this is a great used car market but I have seen the used car prices go sky high in last couple years.

[chevelle]

Originally Posted by vivekiny2k

As I said, it depends. You can choose the right car with right lease if you are careful.

95% of my house value is with the bank. that doesn't make me any nervous about the ownership

That is true while buying a car too.

As for home loan, i would never compare it with cars which are depreciation worthy.

[NinadJoshi]

Originally Posted by chevelle

As for home loan, i would never compare it with cars which are depreciation worthy.

@Chevelle, dont even go there mate...anything to remind me of my underwater mortgage clogs the carburetor in my heart and floods the tear pumps under my eyes. I am the classic 'bakra'...bought the house at the peak of the market and have only seen depreciation ever since. I have the golden touch (not!)

[chevelle]

Originally Posted by NinadJoshi

@Chevelle, dont even go there mate...anything to remind me of my underwater mortgage clogs the carburetor in my heart and floods the tear pumps under my eyes. I am the classic 'bakra'...bought the house at the peak of the market and have only seen depreciation ever since. I have the golden touch (not!)

Ya i know. But now is a good time to buy and keep it for long time. Market is gonna appreciate soon. Its the worst in real estate that's for sure but then it is for keeps not like car which you get rid of in 3-5 years. Home is something you keep for 10 years and it won't be a issue. Who knows how much value it will have after 10 years. So keep your hopes up. But then we are going way way off topic.

The lease discussion was for someone new to country who has no credit. That is why it was bad idea imho. Just that it drifted elsewhere.

[NinadJoshi]

People often fail to understand that no credit is not the same as bad credit. Getting a loan in a no-credit situation is less cumbersome (and expensive) than getting one in a bad-credit situation.

Every lender (credit union, bank, other financial organizations) offers what is called as a first time car buyer program. I believe these programs too offer competitive interest rates and payment plans, and may be worth investigating during a purchase.