As an international student or expat, you’ll need to push a little harder to secure a car loan—let alone buy your first car. Many foreigners relocating to America need a vehicle to go to class, go to work and face daily obstacles, but a lacking credit history can be daunting. Today, international students and expats rely on providers like Lendbuzz to secure car loans, but a comprehensive understanding of financing is still important.
Whether you’re searching for student car loans, auto finance solutions or the lowest auto loan rates possible, you’ve come to the right place. Below is your guide to buying your first car in America.
Step One: Facing the Build Credit History Problem
First, you’ll need to understand the difficulties attached when you finance auto solutions as a foreign student or expat. Without any U.S. credit history, you’ll be barred from auto loans in general. If, however, you’re able to obtain credit in the United States without any credit history, you’ll need to settle for a high loan or lease.
If you’re an expat, you’ll be able to search for low-interest rates via international manufacturers. These manufacturers offer rate reductions to foreigners, and they’re quite reliable. If you’re settling with a basic line of credit, be prepared to pay a 10 to 20 percent down payment. You’ll also need to finance or lease the vehicle within your U.S. visa’s term.
Step Two: Using an Online Lender
Fortunately, an online lender like Lendbuzz can help you secure a car loan. Lendbuzz is a good fit for customers lacking in U.S. credit history, and it doesn’t require a social security number to get started. Offering loans to all visa holders, Lendbuzz customers are frequently international professionals, international students, expats and young professionals with thin U.S. credit files.
Lenbuzz is similarly available to help establish and build credit history. To achieve the best-possible financial offers available, you’ll need to examine a lot of auto dealers.
Step Three: Selecting a Vehicle
Next, you’ll need to choose the right vehicle. While some requirements are essential, it’s a good idea to finance around the above-mentioned expenses. First, determine your area of residence. If you’re living in the city, a small-town cruiser will spare big bucks in the long run. If you’re in the suburbs or country, consider a truck.
Step Four: Facing the Insurance Problem
Once you’ve leased or purchased your vehicle, you’ll need to get auto insurance. In America, financial institutions require auto insurance plans if either a lease or loan is present on a vehicle. Your auto insurance rate will be determined by two things:
- Your U.S. credit history
- Your U.S. driving history
Again, lacking U.S. credit history is a problem. Similar to obtaining a loan, your criteria for securing auto insurance as a foreign student or expat will be difficult. U.S. insurance companies do, however, offer specific rates for foreigners. Find an insurance quote comparison website, as it will have a section for individuals with little credit history.
Step Five: Registering Your Vehicle
Your vehicle can’t be legally driven until its registered. To register it, you’ll need to acquire and present a valid U.S. driver’s license—which can be obtained at your local Department of Motor Vehicles outlet. Then, you’ll need to provide proof of insurance coverage.
During registration, you’ll need to pay your vehicle’s sales tax. Unfortunately, United States sales tax isn’t included in a vehicle’s original price. It needs to be paid during the time of registration and delivery. If you’re only leasing the vehicle, you can pay its sales tax via monthly investments.
You’ll face several challenges as a foreign student or expat when purchasing a car. Learning how to get a loan for a car will be difficult—but it isn’t impossible. International student loans are certainly available, too, if you’re attending a United States university. Just remember to finance your vehicle responsibly, and use an online tool to secure a quality car loan—based upon your terms.
Lendbuzz is an online lender for expats & international students in the U.S. Our car financing platform offers international professionals attractive car financing solutions – without U.S. credit history or SSN.
If you are looking to buy a car – new or pre-owned – Lendbuzz partners with a wide range of auto dealers, to offer you a seamless car purchasing experience. Lendbuzz offers the lowest rates, quick & easy online approval (less than 5 minutes), and consulting services on how to build your U.S. credit history.
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Lendbuzz is an online platform providing car loan for international students and car loan for expats in the U.S.
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