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-   -   Guide: First-time car ownership in the USA (https://www.team-bhp.com/forum/international-automotive-scene/168455-guide-first-time-car-ownership-usa-6.html)

While we are on the subject of rentals , my first (and only) car was a 12 year old (when I bought it) Corolla. It had spent the first two years of its life as rental in Orlando, where every other car seemed a rental.
It was even painted in rental spec white, and came in rental trim too, which meant airbags (mandated by law), but no ABS. I picked it up for what I thought was a decent price, put 20,000 extremely uneventful and boring miles on it in a year and a half, like every one of its past 4 individual owners, and it never ever as much as showed a squeak or a rattle. Only expense I incurred on it was a blown bulb, which cost $8 to replace.
Then came a time when I had to sell it off , and even in the distress sale, it managed to fetch 80% of the value I had paid for it. So if looking at the bottom end of the spectrum , I say, it doesnt really matter if one of the past owners was a rental company. If paying > $10,000 though , I would rather look for individually owned cars.

No it is absolutely not. What you probably meant is you buy it relatively cheap, you sell it relatively cheap. The difference is/might work out less then on a non rental more expensive car.

As rule of thumbs go, that might not be a bad idea. Still, in the US there is such an abundance of second hand car, why run the (rental) risk at all.

Something is cheap for a reason. Its not as if these rental companies believe they need to do American society at large a favour by selling of their rental cheaply. There is a reason rental cars are generally cheaper than non rentals. Go figure!

Jeroen

Guys, I have some queries

1) In US, what if GPS device shuts down/malfunctions/lost? We cant get down and ask direction like in India, nor do we know the route to navigate ourself. What to do ?
2) What if there is a breakdown of the car in the middle of night in a deserted location?
3) How do we know if parking is available or not at a location before hand? If not available how do get the alternatives? We CANT park anywhere in the bylanes as in India (difficult now a days even in India)

Experienced drivers can throw some light please

@Manduvindupondu,

Just google it my friend. GPS is available in mobile phones. Buying a specific GPS device is fine but most of us use mobile phones.

Your insurance always has road side assistance either as standard package or for extra few dollars. Get them. They even come and jump start your car for free, fill gas and even provide tow to nearest motel.

Parking - Just google where you are going. Cities like NY has spot hero application which will get you prepaid parking that you can book in advance. Look out for such apps in the city you are going.

Its 2016 and you are going to a country where communication is on your finger tips!!!

I understand your apprehension/concern, but parking is really never a problem in the USA. Just about everywhere you need to go by car, so with the exemption of some of the big metro's parking is never an issue.

I have never ever given it a thought at all. Again with the exception when we drove to major towns. Most hotels will have their own parking but sometimes you might have to reserve in advance. So when you book an hotel check and pre book parking as well.

With respect to the GPS breaking down, use your phone as suggested, ask for directions, there are lots of road signs or you could of course buy a map! Believe it or not, but until recently in Europe and the USA everybody's used road maps to get around. I have yet to meet a driver in India that has, let alone use a map. But in western countries they are still available. I have various maps in each of my cars, just in case.

Jeroen
Jeroen

Car loans from 401(k).

Only recently did I come to know about 401k loans. For those who don't know about 401k- it is similar to PF in India. You contribute a certain amount, the employer matches the contribution (to a set %'ge - varies from employer to employer) and bith go together in the 401k account.

401k loans typically run for 5 years and they have a fixed interest for all people in the plan. The thing which makes it really attractive is - the 401k interest goes back into your 401k account. So you are paying yourself interest.

On top of that no credit enquiries or anything. You are always pre approved. and no need for any special insurance on your car.

Hope this helps.

Thanks Jeroen, VW2010. In my earlier visits, there was no need for driving. This time I need to drive, already getting mentally prepared for long commutes in US :-) . Unlearned the Indian (intuitive) way and getting myself ready for US (Process driven) driving :-)

Just to add some a few more points to the people who have commented above. If you intend to stay in the US for sometime and buy a car, also please get a AAA membership. It is pretty cheap but the greatest advantage is that they provide road side assistance if your vehicle breaks down and they are pretty punctual and fast as well. I've used them to good effect in the past.

Also if your vehicle breaks down in the middle of nowhere, at night and you feel scared or unsafe, please call "911" in that case. The police officers really help out in that case.

A lot of good info in this thread :)

I'm going to the U.S. Next month and am going to be living in San Diego for 7 months .

Everybody whose gone before me for my particular course has told me to rent a car for the entire duration.

A Corolla works out to 650 a month + 200 insurance , which is about $ 6,000.


I am instead considering buying a used car and selling it on my departure. Would it be wise to do so, considering all the extra paperwork and formalities I have to go through? It does seem so financially , but I'm worried that I may or may not be able to sell the car in a timely manner when I'm about to leave.

What do you all suggest?

In that case, you can sell it to Carmax and be done in a few minutes.

Yes, I agree. Although I must admit six months is a bit tricky. Could go either way. But you cant go wrong with Car Max. Very easy, they will sort all your paperwork when you buy and when you sell it back to them six months later.

We bought from Car Max and run a Ford Focus for nearly three years and I was amazed at what I got back from Car Max!

The one thing you might want to look i to is insurance, althought Car Max will be able to arrange that as well

Enjoy your stay in the USA. I don't agree its the greatest nation in the world, but it is a very nice and interesting place to be spending some time.

Jeroen

Carmax does not do insurance.

http://www.carmax.com/enus/auto-insu...s/default.html

Thats true, insurance will be expensive, but for a sub 10000 car, as Clarkson will say, how bad can it be?

I was paying $400 for a $4000 car ('99 accord) for 6 months with 1 year driving history and No tickets. (Aged 27, Location Michigan)

Car Max doesn't do sub 10.000 cars. So you will need to spend upwards of 10.000 and do your own insurance. But on a car just upwards of $ 10.000 you should be fine with third party only most likely.
Jeroen