Douglas Olsen
International students face several challenges when it comes to transportation, especially when public transportation is inaccessible or inconvenient. The process of acquiring a car can be simplified by following a few steps. Firstly, it is important to research the legal requirements of the host country and determine eligibility to drive there. This may involve obtaining a valid driver's license, which could require written and practical driving tests. Some countries permit driving with an international driving permit or a home country license for a limited period. After obtaining a license, it is crucial to understand the specific requirements for car ownership as an international student. This includes considering expenses such as insurance, maintenance, registration fees, and fuel costs, as well as comparing financial plans offered by dealerships and banks. Additionally, it is recommended to get an auto loan instead of a personal or student loan due to lower interest rates and better payment plans.
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What You'll Learn
Getting a driver's license
As an international student, you can apply for a driver's license in the US. The process may vary depending on the state, so it is important to check the specific requirements for your state. Here is a general guide on how to get a driver's license as an international student in the US:
Wait Period:
Wait at least 10 days after arriving in the US before applying for your driver's license. This will allow your Form I-94, "Arrival/Departure Record," to update in all government systems. Some sources suggest waiting two weeks.
Check Eligibility and Requirements:
Before starting the application process, check the eligibility requirements for obtaining a driver's license in your state. The requirements may vary, but generally, you will need to be enrolled in the Student and Exchange Visitor Information System (SEVIS) with an "Active" record status. You can confirm this with your designated school official (DSO). Additionally, some states may require proof of residence, so be sure to check your local DMV's website for specific documentation needs.
Gather Necessary Documents:
When applying for your driver's license, make sure to bring the original copies of the required documents, which typically include:
- All signed versions of Form I-20, "Certificate of Eligibility for Nonimmigrant Student Status."
- A valid passport and your most recent student visa (unless you are from a visa-exempt country).
- Proof of residence (this may vary depending on your state).
- If you are on optional practical training, bring your Form I-766, "Employment Authorization Document."
- If you have a temporary social security number from on-campus employment, bring this along.
Visit the DMV:
Go to your local Department of Motor Vehicles (DMV) or RMV to apply for your driver's license. The DMV may need to verify your non-immigrant student status using the Systematic Alien Verification for Entitlements (SAVE) Program.
Driving Tests:
The requirements for driving tests may vary by state. Some states may accept a valid driver's license from your home country, while others may require you to take both a written and driving test. In some cases, you may need someone over the age of 25 to vouch that you have driven a certain number of hours, including nighttime driving.
International Driving Permit (IDP):
Depending on the state and your country of origin, you may need an International Driving Permit (IDP) in addition to your local driver's license. Check with the motor vehicle agency in your home country or your country's embassy in the US to determine if an IDP is required.
Insurance and Costs:
Keep in mind that purchasing car insurance is mandatory in almost all US states. The cost of insurance can vary based on age, driving history, location, and other factors. Consider getting an insurance quote before buying a car to factor this into your budget. Additionally, be aware of other costs associated with car ownership, such as maintenance and repairs.
Alternative Options:
If the process of buying a car seems overwhelming or costly, there are alternative options. You can consider renting or leasing a car, which may be more feasible for shorter periods. International students can rent cars from many US rental companies, but be sure to check their specific requirements, such as having an IDP or a local driver's license. Additionally, you can borrow a car from friends or your host family for short-term needs, but remember to check insurance requirements for frequent borrowing.
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Renting or buying a car
As an international student, you can rent, lease, or buy a car in the US. However, you need to meet certain requirements, such as having a valid driver's license and, in some cases, a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
Renting a Car
If you plan to rent a car for a short trip or vacation, you can borrow a car from an agency for several hours or days. Car rentals tend to come with strict terms and conditions, which can lead to hidden or unexpected additional costs. When renting a car, you'll have access to a limited pool of models depending on stock and availability.
Leasing a Car
Leasing a car is like a long-term rental, where you borrow a car from a dealership for months or years before returning it. You don't own the car, but you're responsible for any damage. Leasing tends to offer more flexibility and lower short-term costs than buying, but there may be restrictions and fees. You'll also need to insure the vehicle.
Buying a Car
If you plan to buy a car, you can apply for an auto loan, which provides a monthly payment plan with an interest rate and repayment period. You can use a credit card to make payments, but this may incur additional fees. When purchasing a used car, you'll need to understand the taxes associated with the purchase, especially when buying from a private seller. Additionally, consider getting an insurance quote before buying a car, as it can significantly impact your budget.
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Car insurance
As an international student in the US, you will need to purchase car insurance if you plan on driving. The cost of car insurance is determined by various factors, including age, driving history, location, and credit history.
Firstly, it is important to note that car insurance is mandatory in the US, even for tourists or visitors who are renting a car. The minimum insurance required will depend on the state in which you are driving. If you are renting a car, you can purchase rental car insurance from the rental company, which will cover you for the duration of your rental term.
If you are an international student with a valid driver's license, you can purchase car insurance. Your original license from your home country may be accepted, or you can apply for an international driving permit (IDP). Most insurance companies offer car insurance for tourists, visitors, and short-term students. Standard policies typically last six or twelve months, but some insurers offer temporary policies for shorter periods.
As an international student, your rate may be higher due to your age and limited driving experience. On average, full-coverage car insurance costs young drivers $373 per month, while liability coverage averages $201 per month. Your rate will decrease over time if you maintain a clean driving record without accidents, speeding tickets, or other violations.
To save money on car insurance, you can consider a higher deductible, which is the amount you must pay in the event of a claim. A higher deductible typically results in a lower premium. You can also look into pay-per-mile insurance, which charges a low monthly base rate plus a per-mile fee. This can be a cost-effective option if you don't drive frequently.
When budgeting for a car, it is essential to get an insurance quote beforehand to help you make an informed decision.
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Budgeting and financing
Understanding the Costs Involved
Before making any decisions, it's important to understand the various costs associated with purchasing a vehicle. These include the initial cost of the car, insurance, maintenance, fuel, and potentially parking fees or tolls. Creating a comprehensive budget that accounts for these expenses will help you determine a realistic monthly payment that fits within your financial means.
Exploring Financing Options
As an international student, you may face challenges when it comes to financing a car in your host country. Traditional banks and credit unions are a good starting point, as some may have special programs tailored to international students. Dealerships may also offer in-house financing options, though it's important to carefully review their terms and conditions. Online lenders and alternative financing options, such as social lending or peer-to-peer loans, are also worth considering as they often provide user-friendly solutions for international students.
Building Credit History
Building a positive credit history is crucial for your financial future in the country you're studying in. A good credit score will not only help with car loans but also impact your ability to rent accommodation and secure other types of loans. International students can start building credit by applying for a secured credit card, becoming an authorised user on someone else's credit card, or exploring credit-building loans designed specifically for international students.
Loan Application Requirements
When applying for a car loan, you will typically need to provide specific documentation, including a driver's license, auto insurance, and proof of income or financial backing. Other requirements may include a finance qualification form, visa, employment letter, payment documents, and proof of lawful presence. It's important to note that requirements may vary depending on the financial institution and your location, so it's always best to consult with them directly.
Renting or Leasing as an Alternative
If budgeting and financing a car purchase seems overwhelming or unfeasible, consider alternative options such as renting or leasing a car. Short-term and long-term rental programs can provide flexibility and alleviate the financial burden of ownership. Leasing can also be a good choice, allowing you to drive a car that suits your needs without the long-term commitment of a purchase.
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Local laws and requirements
Driver's License
Before getting a car, you will need to obtain a US driver's license. The requirements and process for obtaining a license can vary by state, so be sure to check the specific rules for your state. In some states, you may be required to take certain tests, such as a knowledge test, a road skills test, and an alcohol and drug education program. It is also important to wait at least 10 days after arriving in the US to ensure that your information is updated in all government databases. You should also confirm that your record is marked as "Active" in the Student and Exchange Visitor Information System (SEVIS).
Car Insurance
Purchasing car insurance is mandatory in almost all US states. The cost of insurance can vary based on several factors, including your age, driving history, and location. It is recommended to get an insurance quote before buying a car to help with budgeting. Additionally, valid insurance is required to register a vehicle.
Car Dealers
When purchasing a car, you have the option of buying from a certified or non-certified car dealer. Certified car dealers are local distributors certified by specific car manufacturers, who guarantee the quality of the used cars they sell. Non-certified car dealers may offer used cars at lower prices, but the quality may not be as reliable. It is important to check any used car thoroughly before purchasing, by test driving and getting a pre-purchase check from a professional mechanic.
Financing Options
As an international student, you may face challenges in financing a car due to a lack of US credit history or a Social Security Number. However, there are companies that specialize in helping expats obtain financing without these requirements. You can explore options such as auto loans, social lending, or factory-backed financing programs with low rates. It is recommended to contact potential lenders and insurers to determine their specific requirements.
Registration and Documentation
When purchasing a car, ensure that you obtain the necessary registration and documentation. This includes obtaining a temporary license plate while waiting for an official license plate from the county court. Keep the registration and insurance papers in the car at all times, and make copies to keep in a safe place. Additionally, if you plan to drive on campus and park on university property, you may need to register for a parking permit.
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Frequently asked questions
Yes, international students can buy, rent, or lease a car in the USA.
You will need a valid driver's license, car registration, and car insurance card. If you don't have a license, you can apply for one, but you must take driving lessons first.
Liability insurance is required by law in the US. Collision (or comprehensive) insurance is not required but is recommended as it pays for your expenses in an accident that is your fault.
You can apply for an auto loan or finance a car through a dealership or bank. You can also look into scholarships to help offset the costs of tuition and allow you to allocate funds towards a car.
You should research the legal requirements of your host country and your eligibility to drive there. You may need to perform written and practical driving tests. You should also be aware of the additional expenses that come with owning a car, such as insurance, maintenance, registration fees, and fuel costs.
