International Students: Buying Cars In The Usa

International students in the United States often opt to buy a car for convenience, especially if they don't live with a host family or near a city bus route. While it is possible for international students to buy a car in the US, the process is more complex than for US citizens. International students must first obtain a US driver's license, which involves a series of tests, and then they can explore purchasing a new or used car from a dealership or private seller. The primary challenge for international students is securing financing, as they often lack a US credit history, but services like Stilt can assist with low-interest loans.

International students can get a driver's license in the USA

Once you have spoken to your DSO, you will need to gather the necessary documents. These typically include a valid passport, your most recent student visa, and proof of residence. If your license is from a country that is not in English, you will need to get an official English translation. You may also need to obtain a Social Security card (or a denial letter) if required by your state.

After gathering your documents, you will need to visit your local Department of Motor Vehicles (DMV) to submit your application and take any required tests. Some states may accept your foreign driver's license, while others will require you to take a written and driving test. The written test covers road signs and traffic laws, and the driving test assesses your ability to operate a vehicle safely.

It is important to note that you should wait at least 10 days after arriving in the US before applying for your driver's license to allow your information to update in the government systems. The entire process can take a few days to a few weeks, and you may receive your license immediately or have to wait for it to arrive by mail.

International students can buy, rent, or lease a car

Buying a Car

To buy a car, international students will need to have a valid driver's license and will likely need to pay in cash, as auto loans are difficult to obtain without a credit history. Students can buy from a dealership or an individual seller. Dealerships offer new and used cars and provide a wide range of options, but individual sellers may be cheaper. It is important to research the car's history and check for any accidents or mechanical problems. Services like CARFAX provide vehicle history reports, and Consumer Reports offers detailed reviews of car models. When buying from an individual, it is essential to ensure that the seller's name and address match the name and address on the title.

Renting or Leasing a Car

Renting a car is a short-term option, typically lasting from several hours to a few days. It is suitable for students who want to explore different places without worrying about the wear and tear on their vehicle. Leasing, on the other hand, is a long-term commitment, usually with a contract of three years or less. Leasing allows individuals to drive the newest car models without the high cost of purchasing them outright. However, leasing comes with restrictions and fees, such as mileage limits and charges for excessive wear and tear.

Auto Loans and Insurance

While auto loans are challenging to obtain as an international student, some banks and companies like Stilt offer loans to non-US citizens. These loans often have low-interest rates and can help students automate the loan process. Additionally, international students can explore options like family assistance, credit card payments, or peer-to-peer loans. Obtaining auto insurance is crucial, as US law requires all drivers to be insured. Students can compare quotes from multiple companies to find the best rate. Collision or comprehensive insurance is recommended to cover expenses in case of an accident.

International students can get a car loan

Once you have a valid driver's license, you can begin the process of securing a car loan. Several companies offer loans to international students, but they may have their own unique requirements and restrictions. It is important to research and compare the loan requirements, interest rates, and repayment terms from different lenders, including banks, credit unions, and online lenders. Some institutions may have special programs for international students, simplifying the application process.

When applying for a car loan as an international student, it is crucial to provide the necessary documentation. This typically includes a valid student visa, passport, proof of enrollment in a US educational institution, and proof of income or ability to repay the loan. Lenders may also require documentation verifying your current address and residence in the USA.

Additionally, it is important to consider the requirements for auto insurance in the US. US law requires all drivers to have insurance, and it may be mandatory in some states to obtain auto insurance before applying for a driver's license. While there are options for international students to find auto insurance in the US, it is a crucial factor in the loan application process as lenders will want to ensure you are able to cover any damages incurred in an accident.

Finally, when purchasing a car, it is important to consider the different types of car dealers and decide whether to buy from a dealership or an individual seller. Certified car dealers are local distributors certified by specific car manufacturers and can provide guaranteed quality used cars and maintenance services. On the other hand, non-certified car dealers, such as CarMax, may offer more affordable options but with varying quality.

In summary, while it is possible for international students to obtain a car loan in the USA, it requires careful research and preparation. By following the necessary steps, providing the required documentation, and understanding the auto insurance and car dealership landscape, international students can successfully navigate the process of securing a car loan and purchasing a vehicle.

International students can buy a car from a dealership or an individual seller

International students can choose to buy a car from a dealership or an individual seller. Dealerships offer both new and used cars, and they are a good option if you want a wide range of choices. It is recommended that you ask for recommendations from friends or check online ratings to ensure that you are dealing with a trustworthy business. Car salespeople work for a commission, so they will try to get you to make a decision quickly. It is a good idea to take a friend with strong English skills with you to be sure you understand everything.

There are two types of car dealers: certified car dealers and non-certified car dealers. Certified car dealers are local distributors certified by specific car manufacturers, who guarantee the quality of the used cars they sell and provide maintenance services. Non-certified car dealers, such as CarMax, also guarantee the quality of their used cars and offer maintenance services, but the quality may not be comparable to that of certified dealers. If you are looking to spend less money on a used car and are not familiar with car mechanics, a non-certified dealer may be a reasonable choice.

If you are buying from an individual seller, it is important to ensure that the name and address on the title match the seller's identification. You should also make sure to take the car title from the previous owner when you complete the purchase. Before committing to the car, it is a good idea to test drive it and get an inspection to avoid buying a problematic car.

When purchasing a car, it is important to keep in mind that US law requires all drivers to have insurance. You will not be able to acquire an auto loan without it, and in some states, you will not be able to apply for a driver's license without it. While there are few barriers for international students to find auto insurance in the US, it is important to note that most financial institutions in the US will not provide auto loans to international students. Therefore, it is recommended that international students have the funds to purchase a car outright.

If you are staying long-term in the US, you may apply for a US driver's license at your local Department of Motor Vehicles (DMV). You must have the required documentation, including Form DS 2019, Form I-94, a passport with a visa, proof of legal presence or residence, and a Social Security Number. It is also important to check the eligibility and supporting documents required in your state for a driver's license.

International students can buy a new or used car

If you are an international student and you want to buy a car, you will need to apply for a US driver's license at your local Department of Motor Vehicles (DMV) or RMV. The requirements for this vary from state to state, so it is important to check what documents you need. For example, in Maryland, you will need to take three tests: the alcohol and drug education program, the knowledge test, and the road skills test.

Once you have your driver's license, you can start looking for a car. You can buy from a dealership or an individual seller. Dealerships offer new and used cars and are a good option if you want plenty of choices. However, remember that car salespeople work for commission, so they will try to get you to make a quick decision. If you buy from an individual, make sure that the name and address on the title match the seller's ID. It is also a good idea to test drive the car and get it inspected before you buy.

When purchasing a car, you will need to obtain a document called the title, which proves that you own the car. You will also need to get insurance. This is a legal requirement in the US, and you will not be able to get a loan without it. You can compare quotes from multiple companies to find the best rate.

If you need a loan to buy your car, you may struggle as a non-US citizen. While some banks may offer auto loans, most will not. Services like Stilt can help non-US citizens acquire low-interest loans, but you will need to provide specific documentation, including a Finance Qualification Form, your visa, and a letter from your employer.

Frequently asked questions