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Indian immigrant's experience of buying a BMW X2 M35i in the US

14th February 2023, 14:45 by Utkarsh Chaudhary

The required documents may vary depending on the state you live in and the dealership or lender you're working with.

BHPian sdaityari recently shared this with other enthusiasts.

Background: Move to the US

I joined American Express in 2017, and within a few months, I had planned to move to the US eventually to work at the headquarters in NY. Covid derailed the plans, but only temporarily and I finally got the chance to move in late 2021. My last memorable trip to the US was one where I drove a Challenger along the beautiful central California Coast in the winter of 2019. As my visa was approved, the number one thing on my mind was the potential car I would get.

I knew I didn’t need a large car and I was actively looking for two-door sport coupes, but I had in mind that my parents would often need me, and having either of them crawl into the back of a two-door car was the only alternative against it.

Before the move, I had shortlisted three options: Ford Mustang, Chevy Corvette, and the Porsche Macan. A Mustang was an obvious choice - I had fallen in love with the Challenger after my Californian Coast road trip, but the handling of the Mustang won me over in just a few hours of getting a chance to drive it. After about two thousand miles, I felt that I had outgrown the Challenger and didn’t need the straight-line acceleration if the car behaved like a rowdy pony on curvy roads.

The Corvette appealed to me for a different reason. It was my dream car in Need For Speed, and the prospect of owning it gave me butterflies in my stomach. The C8 looked gorgeous, and at a base price of $60K, I would gladly pay a premium if it meant having it in my garage. If all other factors were in my favor, I would still exchange my current car (that I eventually purchased) for the Corvette any day.

There were two issues with the Corvette - the pricing and the waiting period. Though $60K was the base price, the ones pre-ordered by dealers were specced much higher. You would be lucky to get one below $70K. At $60K, I was already stretching my budget.

As has been the case since its launch in 2020, waiting periods for the Corvette range from 6-9 months. If I was patient enough, I could order one from the factory at near about $60K (+ taxes) and get it before I completed a year in the US. I could also find a rare Corvette sitting on dealer lots at a premium of $10-20K over MSRP (or sometimes up to $100K over MSRP) if I had the money. On principle, I had decided not to pay over the MSRP in any case. And I was not going to be patient with my time. After all, one primary motivation to move to the US was cars and I couldn’t wait to get into one.

That left me with the Macan. I loved the looks, and the base model was just around my budget. It was a five-seater, so my parents would have been comfortable any time they visited me. There was no rush in Porsche dealerships, so I could potentially walk into one, and walk out with the car. All I needed to do was convince one of them to give me a loan without a credit history.

My last photo in New Delhi (this was on the Rao Tularam Marg) on the way to the airport. I wonder if it was a sign that I should get the Macan. This is the pre-facelift version but a Macan nonetheless.

My first photo after landing in the US with my cousin. I am standing at the Hertz parking lot of Newark airport, next to a Chevy Bolt that I am about to rent for the first week.

Contacting dealers before the move

Once I had my visa, I needed a month in India to get things in order before the big move. But in the age of the Internet, there was no stopping me from contacting dealerships for a potential deal.

On chatting up with them, I realized that as an immigrant looking to buy a car in the United States, you'll need the following items (different states have different requirements, but this list should give you a good idea):

Proof of identity, Proof of residency: This was not an issue as I could get into a rental agreement within days.
Proof of income: I was moving for work, and my company sponsored my visa - so a visa copy and the offer letter would suffice.
Proof of insurance: Given I only had my India license, I felt it could be tricky to get one, but I had a lot of time to explore many providers and realized Progressive will give you car insurance on an Indian license without any hassles (the rates are high though, but money wasn’t going to come in the way of my desires).
Down payment: I was going to repurpose a part of my relocation bonus for this, but you could always use an Indian credit card for the down payment. In the end, I split the down payment 50-50 between my US funds and the India credit card.
Social Security number or ITIN: This was the biggest issue. SSN is like the PAN of the US. If earlier times, you could simply visit the SSN office any fine day, line up for a token, and get it issued the same day. Since covid hit, SSN offices around the country made it mandatory to get appointments, and I couldn’t get any within the first month of my landing in the US. This turned out to be the bottleneck, but also a blessing in disguise. I hear walk-in appointments have resumed now.

Note that these requirements may vary depending on the state you live in and the dealership or lender you're working with (This is not legal advice!).

Let’s say you manage to get the SSN - if you don’t have the money to buy the car outright, you still have one big hurdle to cross: the loan. As an immigrant without a credit history, getting a car loan can be a challenge, but it is not impossible. Here are some options you could consider:

Get a co-signer: If you have a family member or friend who has a good credit history, they can co-sign on the loan with you. This will give the lender added security and increase your chances of getting approved. However, just about anyone will not agree to it - if you were to default, they would be liable to pay the loan back, and missed payments affect their credit history too. Additionally, some dealers mentioned the need for the co-signer to be from the same household as yours. This can definitely be a challenge.
Find a credit union: Some credit unions have loan programs specifically for immigrants or people without a credit history. They may have more flexible requirements and be more willing to work with you to get a loan. I didn’t explore this option.
Consider alternative lenders: There are alternative lenders, such as online lenders who lend specifically to a cohort (like immigrants), that may be more willing to work with you even if you don't have a credit history. However, be aware that they may have higher interest rates and fees. You could also try getting personal loans to fund the car, but these loans most definitely have a higher rate of interest.

The option that worked for me was BMW’s International Executive program. Now, I should mention that I contacted at least ten dealerships, and not all of them showed enthusiasm about this. I feel the dealership’s stamp of approval has a strong impact on the decision of BMW Financial Services. I will talk about it more, but how can I talk about BMW before I talk about Porsche? After all, a BMW wasn’t even on my initial shortlist!

Booking a Porsche Macan

The day I landed in the US, my cousin (who is studying at Yale) came over to New York to give me some support. Little did he know that my intrinsic motivation was something completely different. Within a few hours of landing, I showed up at the Porsche dealership for a test drive (I had taken an appointment over email).

I test-drove the Macan S and liked it immensely. The second-row space was abysmal, and my cousin couldn’t stop complaining - but I was never going to sit in the second row of my own car. The Porsche dealership had agreed to get me a loan through their international executive program, but they said that they would confirm the rates later.

I visited them a few days later to test drive the base model. I felt a lack of power (duh!), but decided to still go for it, given I am a fairly relaxed driver on the highway (my co-passengers would disagree). They informed me that my rate would be 11% and the period of the loan could only be until my initial visa period (which was less than three years at that point), so my monthly payments could potentially be over $2000. I contemplated a three-year lease, with an intent to buy it later, and decided to put $1k down to book an incoming model.

Booking confirmation of the Macan

One of the Macans at the dealer lots which I test drove

All I needed to do was wait for my SSN appointment in a few weeks.

Reviewing Shortlist

The SSN delay was a blessing in disguise. I had some time to think and realize that the 11% was a rip-off. But the conviction still wasn’t enough to cancel it. I had canceled the bookings of Renault Captur and Nissan Kicks in India in the past and was dreading the potential harassment.

Thankfully, I came in contact with BHPian mobike008 (Avinash), which turned out to be the game changer. He had been in this country for a good amount of time and had gone through many car purchases here. He was kind enough to share his wisdom and that opened my eyes. He assured me of two things - 11% was abysmally bad and canceling a booking was going to be as easy as sending an email in the US (they do care about customer experience). He had purchased a BMW X3 M40i earlier in the year and suggested I at least test drive one before making a final decision.

I sent out that cancellation email and revised my shortlist - adding BMW’s X3 to it, and the newly redesigned Mercedes-Benz GLA. Even at this moment, I hadn’t added the X2 to the list.

Zeroing in on the BMW X2 M35i

I find it very weird that car dealerships in the US are off on Sundays. I got off work early one day to go test drive more cars on a Friday. Mercedes, BMW, Porsche, and Land Rover dealerships are within a few minutes of each other in Manhattan. The GLA had been on my radar in 2019, so I decided to start with that.

The Mercedes dealership in Manhattan is an out-of-the-world experience. From the moment you walk into the dealership, it awes you. Not only are you surrounded by the flashiest new cars, but the modern, spacious showroom allows you to explore each model in detail. The GLA AMG 35 fit right into my budget, but they didn’t have one for a test drive. The salesperson said that he could arrange one later in the week, but also mentioned a dealer markup on the vehicle (or any other vehicle from the dealership). On hearing about the markup, I decided I cannot continue this journey with Mercedes Benz. I did call up a few others in the area to double-check the markups, but in general, I found out that dealers either didn’t have an AMG model or wouldn’t sell it without a markup.

The Land Rover and Porsche dealerships in Manhattan didn’t entertain the possibility of a loan without a credit history, so I didn’t bother to test drive any of their models.

The BMW dealership in Manhattan, though quite large, gave me a dead feeling, to be honest. The waiting area had only a couple of vehicles for display and I was made to wait for some time, even though I had an appointment through email. Thankfully, the experience could only get better from here.

A salesperson approached me, and I enquired about the X3 M40i. Obviously, they only had a base model and I decided to try it out on the busy New York streets. On my way to the parking garage, I saw a couple of BMW GS motorcycles and explained to the salesperson that the 310 GS is manufactured close to home and is not really a BMW. He was a motorcycle enthusiast too, and we talked about how I would get one as soon as I could get a motorcycle endorsement in the US. In hindsight, I did get a BMW F750GS within a week of getting my motorcycle endorsement, but that’s a different story for another day.

After driving the Macan, the X3 base model just felt too laggy and a switch flipped in my head telling me not to buy such a large car, without adequate power. The salesperson could visibly see the disappointment, and we were about to get into the X1 for a test drive hoping it would feel more agile. Before we could start it, he confirmed that the model had just been sold and was not available for a test drive anymore. I was about to lament my wasted half-day, when he suggested - why don’t you try the X2 that was parked just behind the X1.

If there was a thing like love at first sight, that’s what I felt when I laid my eyes on the black X2. It's a feeling of pure excitement and awe that is difficult to describe, but it's undeniable.

At first glance, everything about the X2 just clicked. The X2 is known for its sleek, athletic styling that sets it apart from other SUVs in its class. In fact, it’s not even an SUV - it’s a hot hatch! It has a distinctive, coupe-like silhouette that is both eye-catching and elegant.

Fun fact: It's also the only car in the whole BMW line up which has the logo on the C pillar!

X1 vs X2 exteriors

Despite its small size, the X2 is designed to be a fun-to-drive vehicle that offers a dynamic driving experience. It has sharp handling and responsive steering, making it a joy to drive on winding roads. The curves of the body, the shine of the paint, and the purr of the engine all work together to create a feeling of pure joy. Imagine yourself behind the wheel, cruising down the road, and feeling the thrill of the open road.

As you take a closer look at the car, you'll find yourself falling more in love with its features, performance, and technology. The heads-up display shows the speed limit, your current speed, and the navigation. You never have to take your eyes off the road.

Love, at first sight, is a special moment that can only be experienced by those who truly appreciate the beauty and performance of these machines. Whether you're an experienced car enthusiast or a first-time buyer, when you find that special car that captures your heart, you'll know it's a love that will last a lifetime.

Imagine if I could feel this with the base model, how would the M35i feel? It’s 228 HP base model inline-4 feels much faster than it actually is, especially when you put it next to a 248 HP, but much heavier X3. The 300 HP M35i with its mid 4 second 0-60 times would feel out of the world. I knew I had to get the X2 M35i at that moment.

Unfortunately, the Manhattan dealership did not have an X2 M35i, or even a base model in its inventory, or in the pipeline for the next few months. The one I test-drove was not for sale. I could put in a factory order, but I wasn’t going to wait.

Car Purchase Experience

The day my SSN arrived, I was on a mission. No dealership in the NYC area seemed to have an X2 base model or an M35i in stock. I realized I needed to widen my net. In summary, my conditions were:

Car should be in the inventory (or on the way to the dealership)
The dealership should be able to help me secure a loan
No markups on MSRP

I realized the only way to search the inventory of all dealers was through websites like cars.com and truecar.com. Even though an incoming vehicle may be booked, dealers still list them in hopes of getting inquiries. There were perhaps about a couple of dozen X2 M35is in the country, and I wanted to get into one of them.

The only dealer in the whole country that checked all my conditions was Bill Jacobs BMW from Chicago. They had a black M35i, which had touched base in the US already and they were expecting it within a week. After a bit of persuasion, they decided to sell it to me at MSRP and said that they would get me a loan through BMW Financial Services.

Everything went right from that point on and within 48 hours of getting my SSN card, my purchase of an X2 M35i was confirmed. All I had to do was to fly to Chicago and drive the car home!

They even gave me a slight discount on the MSRP (around 3%), so I didn't mind them adding the Doc fees for a few hundred dollars and X2 Mats for $185 (15K INR for MATS )! However, the discount covered for anything extra that I had to pay, so I didn't protest any of these additions. Bill Jacobs was still one of the best dealers in the country. There was a dealer in Florida, who had added a $3K paint protection job on a $50K car.

After the formalities were done and I made the pre-payment over the phone. As I made travel arrangements to Chicago, the vehicle arrived at the dealership and my salesperson sent me the first photos!