Buying a car

Quietfeet
Posts: 6
Joined: Thu Jan 15, 2015 6:25 am

Buying a car

Post by Quietfeet »

Thank you for all that post to this forum. We are planning to buy a used car before or once we arrive at our new location and we’re wondering if you have any advice and/or must ask questions? So far we are aware that we need to look into the country’s car insurance policies, taxes to drive in country, previous owners of vehicle (we are planning to buy from expats only), maintenance done at certain mileage, transferring of title, and availability of parts.

Thank you!
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Inquiry

Post by PsyGuy »

It would be very helpful if you could provide us your destination?
Quietfeet
Posts: 6
Joined: Thu Jan 15, 2015 6:25 am

Re: Buying a car

Post by Quietfeet »

@admin
Thanks for the links.

@psyguy
It's in the Arabian peninsula, which may not be helpful, but that's as specific as I'd like to get. Thanks.
tommypizza
Posts: 58
Joined: Fri Aug 26, 2011 11:35 am

Re: Buying a car

Post by tommypizza »

If you are going to a "good" school, the HR dept. should be able to answer these questions...as well as others on staff. As long as there are no extreme tax issues or special legalities, you should not have any problems...as long as you have the cash.
Overhere
Posts: 497
Joined: Wed Dec 05, 2007 3:29 am

Re: Buying a car

Post by Overhere »

If possible, rent before buying. Take the pressure off yourself at the beginning of the year when you are still acclimating. Of course if you get an impossibly good deal you have to jump on that asap.
PsyGuy
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Location: Northern Europe

Reply

Post by PsyGuy »

One of the issues with purchasing a car overseas as a foreigner is in the vast majority of cases you have to buy the car with cash, you cant finance the purchase. The exception is when a car loan is included in your compensation package.
sid
Posts: 1392
Joined: Sat Dec 02, 2006 11:44 am

Re: Buying a car

Post by sid »

Financing is very possible in a good range of countries, actually. Doesn't mean it's a good idea, but it's possible. Remember to check out the ins and outs of financing before you sign a deal, and remember that the banker is unlikely to tell you things that seem completely normal to them, but which will be surprising to you. He's known since childhood that bankruptcy or not paying your bills is a jail able, criminal offense, so it never occurs to him that you wouldn't know that... Yep, that's still true in a lot of countries. Also, make sure that you would be able to pay off any loan on short notice, if you really had to. In some countries you won't be allowed to cancel your residency and depart the country until outstanding loans are settled, and you generally won't be allowed to sell the car until you settle the loan. Getting into debt in a foreign country can be a really dumb thing to do, so make sure you think it through, and that somewhere, somehow, you would have the resources to get out of that hole if you had to, even if that meant putting it on your US credit card or begging mom and dad. With global finance networks, it's pretty easy for banks to chase you down even if you flee the country.
The advice goes well beyond car financing. Think carefully as you sign up for and use a local credit card, take a personal loan, co-sign for someone else. It's easy enough to get in debt trouble in our home countries, and so much easier in countries where we don't know all the rules.
shadowjack
Posts: 2138
Joined: Sat Oct 06, 2012 9:49 am

Re: Buying a car

Post by shadowjack »

We leased a car in one ME country which was great. We bought a 4x4 in another ME country (after realizing it is a lot safer in a 4x4 than in a Mitsubishi). We bought the car before we arrived from a leaving expat who transferred the vehicle to the school which then transferred it to us on arrival.

You will need your residency permit for whatever country (civil ID, iqama, residency card) you go to before you can legally own the car. Be careful there. As Sid said, there are issues to watch out for.

Good luck - I never regretted driving during my time in the ME - it is scary and like nothing you have ever driven in (and I have driven in huge US cities, huge European cities, and huge Asian cities), but once you learn driving habits for your country, you'll do fine.
PsyGuy
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Location: Northern Europe

Discussion

Post by PsyGuy »

I know of no country that will make an auto loan to an IT thats just arrived in country. You need PR in a region before they will consider you. In addition your employer is only going to be able to confirm employment in country for 2 years, which makes for a very short term loan.

I do agree with Sid that the penalties for consumer default and bankruptcy are criminal in parts of the world, including the ME. They have debtors jail. Going into debt isnt the issue its defaulting on debt that is the issue.

As long as your payments are current, and youre not in the Kingdom, you can pull a runner without an issue.
sid
Posts: 1392
Joined: Sat Dec 02, 2006 11:44 am

Re: Buying a car

Post by sid »

PsyGuy wrote:
> I know of no country that will make an auto loan to an IT thats just arrived in country.
> You need PR in a region before they will consider you. In addition your employer
> is only going to be able to confirm employment in country for 2 years, which makes
> for a very short term loan.

There are countries in the ME that will start arranging your loans even before you get on a plane to the country. They may not do the deed until you have residency, but that takes usually only about a month, about the time that most new people are ready to get a car. Loans are also possible, in my experience, in parts of Europe, Latin America and Asia. Rules are very country dependent, but yes, I think PG is right at least in that you'll need residency before the loan is approved.
As for confirming your employment, banks usually want to know that you are employed, but they don't tend to ask how long you will remain employed - it would be a silly question, since no one knows that. In the US, they ask how long you have been with your current and past employers, as a hopeful predictor of longevity, but how could anyone know how long you will remain employed?
PG, it's interesting that you first deny loans are possible, and then claim knowledge about the rules limiting loans, and then about how easy it is to run out on (supposedly impossible or very difficult) loans.
PsyGuy
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Location: Northern Europe

Reply

Post by PsyGuy »

@Sid

There is nothing silly in asking an obvious foreigner how long they are going to be in country, and how long they will be employed, which your contract will only be able to confirm as 2 years.

Its not that interesting, your assumption is to equivocate "residency" as a short term or fixed term residency and PR or Permenant Residency which is a step under citizenship and isnt achieved until after a lengthy term of fixed/short term residence of 5-10 years, or marriage to a national, or a local guarantor. Gaining PR is a stable indicator you have and intend to remain a resident of the country and region.

While ITs can get credit cards relatively easily, I do not know of a regional bank that will approve an auto loan for a foreigner who is newly arrived on a short term contract with a fixed residency. We disagree, I can not reconcile my experience and resources with your claim.

There are no loan officers watching a borrower to make sure they dont skip out on the loan and leave the country. I know of no immigration authority that is connected or able to reference consumer financial information as part of its exit departure procedures. Their ability is limited to judicial entries and orders that would require a financial institution or other creditor to make a claim to a court or judicial authority and have that entity bar your departure and exit. That isnt going to happen if you are current on your payments.
In the Kingdom you are requires to have a departure authorization by your employer to leave, and the employer is likely to know if you do or dont have an outstanding auto loan or other debt obligation.
sid
Posts: 1392
Joined: Sat Dec 02, 2006 11:44 am

Re: Buying a car

Post by sid »

Article about people getting arrested, deported, debts collected from other countries after fleeing the UAE... proves both that there are loans given to expats, and that fleeing is not a simple solution: http://gulfnews.com/news/uae/general/de ... -1.1357579

National Bank of Kuwait, offering expats loans for cars, home remodelling, children's tuition: http://www.kuwait.nbk.com/personal/loan ... en_gb.aspx

Qatar requires expats to get a bank clearance document before they can cancel their residence visas, and you will not be allowed to leave the country without it: http://qshield.com/blog/leaving-qatar-e ... on-process

Citibank Egypt - want a loan for an exotic vacation? http://www.citibank.com/egypt/consumer/loans.htm

These are all just examples. There are many more.

Kuwait Labor Law, by the way, only allows contracts to be a maximum of 1 year, renewable (though some schools write two or three year contracts, they're not recognized legally). Yet they're still offering expats lots of loans with far greater repayment periods. Other places have other rules, like Qatar Foundation has everyone on contracts without expiration (just a notice period for either . to end it)... Two years is not universal.

Anyone want to post examples for other regions? I'm bored after just the one...
scribe
Posts: 99
Joined: Sun Feb 11, 2007 2:18 am

Re: Buying a car

Post by scribe »

Currently working in Dubai - most teachers (both at our school and at 3 others here in city of which I have personal knowledge) purchase cars through loans - quite a normal process. Tens of thousands of expats do the same - even our staff members like drivers, facilitators, etc., pool together and purchase cars using loans. Funny story about this. A teacher in his late 50s went in for a loan with everything proceeding quite normally, until it came time for loan terms. He was told he only qualified for a 2 year loan, as after that he would turn 60 and he "could die." Who could argue with logic like that? He conceded that he, like others, could in fact die and settled for a 2 year loan instead of the typical 5 year one.
PsyGuy
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Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Reply

Post by PsyGuy »

@Sid

We have very different understandings of what "proof" is.
Examining your first article:

1) The only individuals pursued were Indians (from India), that doesnt apply to westerners.
2) The article describes that debts can be sold to collection agents in the UK, etc. Sure they can be, but they wont, because those collection agents arent going to buy debt they cant enforce, or seek judicial redress.
3) The concerns of those foreigners are largely directed by those who have left the UAE (demonstrating that it happens) and want to return to the UAE. Dont return and you dont have a problem.
4) No western country is a signatory to the Riyadh Convention.
5) The article reports that unofficial estimates report 2500 individuals abandon their debt, that would appear to be more on the common side.
5) The rest of your article is based on commentary supplied by those in the finance industry, they like IS admins have a vested interest in fear mongering.

Your Second Article:

1) This is a sales advertisement, its not a statement of actual terms and conditions.
2) It doesnt actually describe what the actual qualifications and requirements will be.
3) You are required to provide a salary certificate, which you previously characterized as silly.

Your Third Article:

1) Its a private blog.
2) You require an exit permit when you leave permanently. Do not tell immigration you are leaving permanently your just going on holiday and then dont come back.
3) Its common enough they have a term for it "absconder".

Your Fourth Article:

1) Says nothing its the loan page for CitiBank, of course they offer loans to nationals.
2) There is no indication what terms and conditions would be for a foreigner.

Yes Kuwait generally provides one year contracts, Japan typically does as well. They are exceptions, and nothing in my previous post was specifically directed to Kuwait.

Two year contracts are not universal absolutes, they are however a generalization that is applicable to the vast majority of ISs globally.
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