How To: Get a Car as an Immigrant / Visa-Holder
If you live in an area of the U.S. that doesn’t have much or any public transit, you need a car. We’ll show you how to get a car as an immigrant or Visa-holder.
Many areas of the U.S. don’t have a robust public transit system, and some locations don’t have any public transit system at all. If you make your home in one of these areas, you’ll likely need a car. We’ll explain how to lease or buy a car as a non-citizen, the best car loans, car insurance for international students and immigrants, and if insurance companies check your credit before selling you coverage.
Leasing a car as a non-citizen
If you need a car in the U.S., you have two options; you can lease a car or buy one. There are pros and cons to each option, and the best choice for you will depend on your personal circumstances.
Non-citizens can lease a car, but you will be required to provide a valid permanent or semi-permanent residency address in the U.S. This can include an F1 student visa, a work visa, or a green card.
You’ll also need an American credit history and a good credit score, proof of your ability to make your lease payments, a valid driver’s license, and the minimum amount of car insurance required by your state.
Anyone in the U.S. can also buy a car. You can buy a car from a dealership, a used car lot, or a private seller. Private sellers, though, will require cash payment in full. If you don’t have the requirements listed above to lease a car, a private seller will be your best option for buying a car.
The best car loans for international students and immigrants
Cars are a big expense, and most people can’t afford to pay cash, so they take out an auto loan to finance the purchase. Loans are available for international students and other immigrants but not having an American credit history can be a barrier.
In some cases, it may be easier to be approved for a personal loan than an auto loan, and the money from the personal loan can be used to buy a car (or anything else).
Car insurance for international students and immigrants
Each state has different requirements for the amount and types of car insurance drivers must carry, but all states apart from New Hamshire and Virginia. The cost of car insurance depends on various factors, including age, gender, driving record, credit score, type of car, and location.
There are several large auto insurance companies in the U.S., including Progressive, Allstate, Travelers, Geico, State Farm, and Liberty Mutual. It’s best to shop around online to find the best rates.
Do car insurance companies run your credit?
Car insurance companies do look at your credit. Your credit score is partly a reflection of how responsible or irresponsible you are, and the thought is that if you’re responsible with money, you’ll be a responsible driver too.
Having little credit history won’t count against you as much as having bad credit when shopping for car insurance. But it may make the policy more expensive as it would for someone with bad credit. Car insurance is one of the many reasons it’s essential to start building your credit history as soon as you can once you arrive in the U.S., whether you’re here as a student or intend to stay for the rest of your life.
Let Upwardli be your map
Upwardli can be your financial road map in your new home! We can help you find the financial resources you need to start building your new life.
