Prius insurance

You may have a difficult time getting approved for a loan if you have no credit history in the US. In fact, if you don't have a Social Security number, so you may not be able to get any loan at all. I don't know how that works.

Since you have never bought a vehicle in the US, I *HIGHLY* recommend that you read all of this: http://www.carbuyingtips.com/carintro.html. Just remember that the Prius is in high-demand so you won't get a better price than MSRP ("Manufacturer's Suggested Retail Price", it's about $3000 over what the dealer paid for the car).

 

I'd echo what the others have said and only add that, once you find a dealer, you get in touch with them, ask them about financing, etc. They would defiantely be able to give you more information than most people here (especially in the DC area... i'd imagine they get a fair number of people coming over who need to buy cars). Most companies have online banking available currently. It wouldn't hurt to go ahead and establish a history with one company or another for the purposes of getting a car loan, however i'd wait until you got over until you got your "daily" bank... I just from Ohio to Minnesota, and all the banks here are different... picking one was a matter of deciding which one would be most effecient for me (ended up going with TCF just because they're in all of the Cub Food groceries around here, including the one about a mile from my house).

I'm not sure how the tax refund would work for you, or if you are even eligible. For citizens, all we have to do is record it when we submit our taxes, and we'll get it, assuming we have at least that much in taxes and we aren't effected by the AMT. it's all a bit confusing... i'm going to let turbo tax or some other software figure it out for me.

Insurance rates vary depending on the driver's history... if you've got a great history, you'll get better rates than someone who doesn't... in general, people have posted in the past that they've gotten a small discount for having the Prius, and others have posted having to pay a little extra... it really varies by company and driver, and i don't think any of us can give you any real good numbers or data. If you want an estimate, try going to one of the major companies websites (like http://www.geico.com/, http://www.esurance.com/, http://www.allstate.com/, http://www.statefarm.com/index.asp, http://www.progressive.com/) and giving them your history and such... it'll give you a ballpark number.

 

As to banking in this country I would recommend staying clear of the giant banks such as Bank of America, Wells Fargo, MNBA, etc. they tend to have very poor customer service. Efusco's advice about online banks is good. There are also a lot of credit unions in the DC area and I'm sure you will be eligible for membership is several of them. Credit unions, in case they don't have them where you are, are like banks but they are owned by the members and the members are the customers, like you and me. They have checking accounts, savings, credit cards, and all types of loans including car loans and usually at very good rates. There are also some very good local banks that only have a few branches and serve a small area, you would need to ask people who live in the DC area which ones are best. Banking is one area, excluding the on line banks, where bigger is definitely not better.

I don't know about the tax refund, except for 2005 the year I bought my Prius. But if you have trouble figuring out the U.S. Tax code don't feel bad, I've lived here all my life and I use an accountant.

 

I personally love Bank of America (I worked at a California BofA for almost 10 years), but my sister in Virginia didn't like them at all. I REALLY like the online banking, and that's what I use mostly.

Anyway, take a look at the right-hand side of the page in this link:

http://bankofamerica.via.infonow.net/locator/atmbranch/

It shows that ATM withdrawal fees are waived at these international banks. If you are currently with one of these banks, you could use your EU ATM card at any BofA without paying fees. If you're going to be visiting the EU while you're residing here, going with BofA could save you a lot of ATM fees (unless you keep your EU account open and use that card when you visit your home).

One thing to consider when you choose a bank--are you going to be wiring money back and forth to EU?? If so, I *highly* recommend a large bank in the US. If you use one of the internet-based banks (or a smaller brick-and-mortar bank company), it will take longer to wire the money. Large banks are direct correspondents, and smaller banks have to send wires through larger banks, so you might end up with several days of delay while the correspondent banks "talk" to each other.

 

There have been some interesting answers here. I'll give a different view. I believe very strongly in working face to face with a human being, so that will be the basis for my recommendation.

I believe you'll have better luck by going with one of the larger national banks - Bank of America, Wells Fargo, Citibank, etc. The "national bank" designation means they adhere to a certain code of conduct, they have a certain level of deposits, and other regulatory things. Just be sure you go with a bank that has a branch near where you live or work - a real, brick-and-mortar building with real, live people inside. Go in and talk to the people in the bank. Let them know your financial history (maybe a letter of reference from your current bank?), where you're working, what you're doing, what your plans are in the U.S., etc. Talk to the branch manager, and have him or her introduce you to a loan officer, then go through the whole introduction again. The loan officers and managers in a branch bank have pretty good powers at deciding who gets what loan. If you get established with a bank and they don't treat you right, change banks!

The idea of a credit union is also a very good one, but again, be sure they have a real place to go see real people and talk to them about your situation. It's very easy to say "no" over the phone; even easier via e-mail. If the people at the branch get to know you, it'll be easier to get them to be fair with you.

Insurance is expensive no matter where you are. If you get a good relationship established with the financial institution you choose, perhaps they can recommend an insurance company that will treat you fairly. Once again, be sure you work with a company with an office you can go talk to someone face to face - my wife went with one of the more prominent online insurance companies before we got married, and it was almost impossible to get service when she got rear-ended. Once the repairs were done, the company dumped her (which is more common than it should be...) On the other hand, when I had an accident, I was able to go plant myself in my agent's office until she made things right.

It might be worthwhile to get a subscription to Consumer Reports for a couple of months to research insurance companies and banks. They do a pretty decent job with their ratings in these arenas.

Welcome, and best of luck!

 

<div class='quotetop'>QUOTE(wan @ Aug 23 2006, 02:49 PM) [snapback]308365[/snapback]</div>

Usually credit history is the most important aspect when getting a loan. Americans have a credit "score", from like 400-850 or so. Most people fall into the 500-700 category which is Poor to Fair to Good. US banks and financial institutions rely heavily, if not completely on the credit score system. So you will not be able to apply for a "traditional" American loan. However, it's quite possible that there are financial instutions that cater to temporary workers on a visa, but you have to realize, if you are here on a temporary visa, what is to stop you from simply not paying, and then leaving back to your country? Nothing at all, there are no debtors' prisons in America so the creditors have to resort to a scoring system.

As for proving income, unfortunately that's probably not enough if you're here on a visa, unless you have some amazing, 6-digit income, which then you can just buy a Prius with cash ;-)

 

You may want to check with some of the larger banks around the EU such as Citibank, etc. That way an account can be set up before moving to the US and the account will be more readily accessible when traveling between the US and EU.

A bank or dealer will review your income and likely offer financing even without a US credit history provided your income is sufficiently strong. The interest rate will likely be higher than it would be with a credit history.

If the Prius is purchased this year, then there may be a tax credit issue since the tax credit is only available to the extent you owe US taxes for the year and doesn't rollover into the next year. For 2007 onward, I'd imagine you will get taxed the same as a US resident (which, of course, would depend on your residency status and number of days spent in the US during a given year). As a result, if you purchase a Prius in 2007, then you are less likely to have a tax credit issue.

Best of luck and safe journeys!

 

Sorry I know this isn't the proper forum for a discussion of the merits of large vs small banks so I'll keep this short. My opinion of large banks (there are only four of them) is not based on anecdotal experience. I sometimes rely on a, very good in my opinion, consumer advocate named Clark Howard. Some quotes from his radio show concerning large banks are here:

http://clarkhoward.com/shownotes/category/7/18/211/

I do not think you will find any evidence that successfully contradicts any of what he has to say on the subject. A large part of the problem is that large banks hire very effective lobbyists and they have pretty much had their own way with the banking laws over the last several years (with the help of politicians from both parties) at the expense of their customers.

 

Hi Wan -- You might want to check with your employer on the financial stuff. Without any US credit history, you are unlikely to get any credit right away. In fact, it will even be hard for you to get a US credit card for a while. I am also European and have gone through all this before -- it's a major pain in the arse. So maybe your employer will help you out financially. If you have the cash, spend it and be done with it. Euros buys you quite a bit in the US these days, and the Prius will come out much cheaper than it is in Europe, I would think.

Good luck.