What To Know: Guide To Buying Cars For New Immigrants
Many places in the U.S. require a car. There either is no public transit system, or the system is limited. Some areas don’t even have sidewalks for pedestrians or bike lanes for cyclists. So cars for new immigrants will be a priority. We’ll explain if non-citizens can buy a car, how to get an auto loan, why credit is so important, and how to register a car.
Can an illegal immigrant buy a car?
Anyone can buy a car in the U.S. You don’t have to prove citizenship to buy a car at a dealership or through an individual selling their car. You do, however, need a license to drive legally. Currently, 16 states, the District of Columbia (Washington DC), and Puerto Rico will issue a driver’s license or permit to immigrants.
You can also drive legally with an international driver’s permit. You must have held a license in your home country for six months or longer to be approved. The permit can be purchased from AAA or the American Automobile Touring Alliance. The permits are valid for one year and can be renewed.
Auto loans for non-U.S. citizens
The average cost of a new car in the U.S. is $42,000, and for a used car, it’s $25,000. You can certainly find a car for less, but you will likely need a loan. You have a few options. Auto dealers typically offer in-house financing, and you could apply for an auto loan from a bank or credit union.
In the case of auto loans, you will be required to make a down payment. For a new car, the downpayment is generally 20%, and for used cars, it’s 10%. Personal loans for illegal immigrants may be a better option as they don’t require a downpayment, and the money can be used to buy a car (or anything else).
The more significant issue than immigration status when getting a loan for a car or anything else is credit. Credit is an essential part of personal finance in the U.S. and can impact your citizenship application. Non-citizens can build credit, and you should start as soon as possible. Car loans and home loans for undocumented immigrants are available, and non-residents can buy homes in the U.S.
If you have a thin credit file, you may be required to provide more documentation proving you have the income to qualify for a loan, and you may be required to provide a larger down payment.
Registering a car
Car registration is typically a piece of paper that must be kept in your car and a sticker that must be displayed on your license plate. Registration is a legal requirement that shows your connection to the vehicle. Undocumented immigrants can register a vehicle at the DMV or transportation agency, but they must have the required documentation. The requirements vary by location, but generally, you will need:
Driver’s license
Proof of insurance
Proof of sales tax paid on the car unless the state has an exemption for auto purchases
The car’s title or lease agreement
Proof the car has passed safety or emissions inspection if required by the state
Car registration application
Bring these items to the DMV. Make an appointment if possible. Otherwise, you might have a long wait. With your paperwork, you’ll also have to pay a fee for the registration. Registration must be updated from time to time. Check your local DMV’s site to learn exactly what forms you’ll need, the cost, and how long registration lasts before it must be renewed.
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