Buying/leasing a car while studying in the US?

[Leibowitz]

I'll be moving from Europe to South Bend in August to begin graduate school, and was wondering about the chances of owning or leasing a car as an international student. Would I have to pay cash, and would I have to get a state driver's license in order to have a car? What are your experiences and advice?

 

 

 

[danica1]

You should definitely get your state driver's license, you'll need it to get car insurance, and it will just make things easier all around. Since you won't have a credit history, and you'll only be in the country temporarily, you will have to pay for the car in cash. Now, the good news is, you can get a used car for a pretty low price, and you should be able to get some of your money back if you sell it when you leave. 

Edited March 18, 2015 by danica1

[TakeruK]

I am Canadian (i.e. also international) and we bought a used car after 1 year in the US. It's very doable! Also, we got a car loan to buy it so it's very possible to get credit in the US as an international person.

 

You will need a US driver's license, so get that first when you arrive. Check your state's rules and regulations for obtaining a license -- California does not recognize any type of international driver license so my wife and I had to go through the whole written test and road test thing with them. We took our test in a rental car (make sure the rental car company is okay with this ahead of time--many are not). In order to drive from the rental car company to the testing center, we needed someone with a US driver license in the car (because we did not have our full privilege US license yet and our Canadian licenses are only good in California for the first 10 days).

 

The biggest challenge with the written test was converting all of the metric units we've learned (e.g. distance to stop from railway etc.) into Imperial units. The biggest challenge with the road test was the logistics, mentioned above.

 

When we bought the car, we got a $10,000 car loan at 1.5% interest from our school's credit union. You will build up a US credit history pretty fast. As soon as you are able to, get a US credit card and start using it. After about a year, we had pretty good credit. We chose to get a car loan instead of paying for it from our savings because it's cheaper to pay the interest than it is to move our savings from Canada, lose out on the exchange rate and pay the currency exchange fees. Getting loans and paying them off also helps increase your credit score. 

 

Finally, you will also need to have car insurance on the car before you can drive it away from the dealership. I recommend finding an insurance agent you want to work with (perhaps you will want to bundle your car insurance with renters insurance too for your apartment etc.). Give them all of your information (driving history etc.) and get a quote for the type of car you might be interested in (the main factors are driving history, make/model, year, how much you'll use it and where you park it). If you have a driver's license from your home country, you might want to start this process early so that the licensing office in your home country can send the information/confirmation of driving history to your insurance agent. Once you are ready to buy the car, you just need to let the insurance agent know what car you got (and the VIN) and you'll be insured!

[ELB]

Try looking up on craigslist.com to get some idea on how much you are going to pay for your car. They have lots of used cars listed on their website.

[aberrant]

Since you won't have a credit history, and you'll only be in the country temporarily, you will have to pay for the car in cash.  

 

That is an incorrect statement. First, it depends on your location (city). Some car dealers are more business-friendly than the others, where they let you to finance your cars, by paying certain percentage of the down payment and pay the rest of the value for anything between $100 - $400 USD a month (depends on what car you are getting, of course) for a specific length (months to years) to pay off the car.

 

OP can also lease a car easily as an international student. A lease is typically a year long. A friend of mine (international) leased BMW Z4 for a year, and he paid ~$200 USD a month for a year. The amount you paid for a lease car is mainly based on the market value difference before and after leasing the car, since cars typically depreciate over time and driving distance / mileage.

 

Like aforementioned advises, getting the state driver license, and getting a credit card to establish your credit history in the U.S. will help a lot. Although you don't need a credit history if you intended to get a used car from owners (as opposed to dealerships). Craigslist is a good place to start. And, while depending on location and culture, typically cash, and probably checks, are acceptable. You'll just need to get the third-party insurance, drive the car to DMV to complete the paperworks, and that's pretty much it (possibly a smog test if your are getting your car out of state).

[danica1]

So I recently went to buy a car with someone who is American but has a foreign drivers license. Insurance was going to cost roughly $200 a month with a $300 deposit, so quite a bit, but at least you can get it. My friend decided to convert the license first to get a cheaper rate.

In my previous comment I was imagining a scenario where the car would be bought immediately upon entering the country, in which case it would be extremely difficult to finance or lease

[Leibowitz]

That is an incorrect statement. First, it depends on your location (city). Some car dealers are more business-friendly than the others, where they let you to finance your cars, by paying certain percentage of the down payment and pay the rest of the value for anything between $100 - $400 USD a month (depends on what car you are getting, of course) for a specific length (months to years) to pay off the car.

OP can also lease a car easily as an international student. A lease is typically a year long. A friend of mine (international) leased BMW Z4 for a year, and he paid ~$200 USD a month for a year. The amount you paid for a lease car is mainly based on the market value difference before and after leasing the car, since cars typically depreciate over time and driving distance / mileage.

Like aforementioned advises, getting the state driver license, and getting a credit card to establish your credit history in the U.S. will help a lot. Although you don't need a credit history if you intended to get a used car from owners (as opposed to dealerships). Craigslist is a good place to start. And, while depending on location and culture, typically cash, and probably checks, are acceptable. You'll just need to get the third-party insurance, drive the car to DMV to complete the paperworks, and that's pretty much it (possibly a smog test if your are getting your car out of state).

[Leibowitz]

That is an incorrect statement. First, it depends on your location (city). Some car dealers are more business-friendly than the others, where they let you to finance your cars, by paying certain percentage of the down payment and pay the rest of the value for anything between $100 - $400 USD a month (depends on what car you are getting, of course) for a specific length (months to years) to pay off the car.

OP can also lease a car easily as an international student. A lease is typically a year long. A friend of mine (international) leased BMW Z4 for a year, and he paid ~$200 USD a month for a year. The amount you paid for a lease car is mainly based on the market value difference before and after leasing the car, since cars typically depreciate over time and driving distance / mileage.

Like aforementioned advises, getting the state driver license, and getting a credit card to establish your credit history in the U.S. will help a lot. Although you don't need a credit history if you intended to get a used car from owners (as opposed to dealerships). Craigslist is a good place to start. And, while depending on location and culture, typically cash, and probably checks, are acceptable. You'll just need to get the third-party insurance, drive the car to DMV to complete the paperworks, and that's pretty much it (possibly a smog test if your are getting your car out of state).

thanks to all responders here for the helpful advice. Being Swedish, I hope I can get a decent used AWD Volvo to lease in Indiana, but first I'll need a driver's license and perhaps a credit card. (Do they actually hand out credit cards to students in the US?!)

[danica1]

thanks to all responders here for the helpful advice. Being Swedish, I hope I can get a decent used AWD Volvo to lease in Indiana, but first I'll need a driver's license and perhaps a credit card. (Do they actually hand out credit cards to students in the US?!)

Hey we're practically neighbors then! Jag är från Finland.

I got a secured credit card - you put money down and that's your credit limit. After a year you get your deposit back but you still get to keep the same credit limit, or they may increase it. This still helps build your credit.

[Leibowitz]

that's just great. Äitini on suomalainen.

Maybe I'll have to get back to you once I've moved and have my license...

[danica1]

That's just funny And to top it off, my spouse is originally from Indiana. Feel free to message me anytime! I'm here permanently now, but I've also been in the country as an international student. If nothing else I can offer emotional support 

[GeoMex]

Anyone knows if I can move to the USA with my own car? 

I live near the border in Mexico, and I have everything in order this side of the border. Do I still need an US drivers license or is it enough with the one I already have? (it is enough when I go shopping or travel in the US for a few days, don't know about living for two full years) also, do I need to get a special permit or new plates?

[TakeruK]

It depends on the rules of the state** you live in. But in general, you will have to get a US driver license and you will have to register your vehicle in the state you're moving to, which means new plates and new stickers. Also, you will have to make sure your car meets the emission/safety standards for your state. I'm not sure about Mexico, but Canada and US have different standards and my friends who have brought older cars into the US sometimes have to pay $500-$1000 to ensure their old vehicle meets all the standards. Newer vehicles sold in North America are probably made to meet all of the standards though.

 

 

** In California, you have to do all of this within 10 days. Also, you have to retake all of the driving exams (written and practical) because California does not recognize driver licenses from any other country.

[GeoMex]

It depends on the rules of the state** you live in. But in general, you will have to get a US driver license and you will have to register your vehicle in the state you're moving to, which means new plates and new stickers. Also, you will have to make sure your car meets the emission/safety standards for your state. I'm not sure about Mexico, but Canada and US have different standards and my friends who have brought older cars into the US sometimes have to pay $500-$1000 to ensure their old vehicle meets all the standards. Newer vehicles sold in North America are probably made to meet all of the standards though.

 

 

** In California, you have to do all of this within 10 days. Also, you have to retake all of the driving exams (written and practical) because California does not recognize driver licenses from any other country.

 

Well my car is 2015, so I don't think it would have any problems with standards.

Do you know how much does it cost approximately to get the license, plates and stickers? 

The thing is that since I'm not an american citizen I won't be able to drive the car back to Mexico with US plates, and that beats the whole purpose of bringing it to the US (Austin Tx)

Edited April 23, 2015 by GeoMex

[victorydance]

The thing is that since I'm not an american citizen I won't be able to drive the car back to Mexico with US plates, and that beats the whole purpose of bringing it to the US (Austin Tx)

 

Why not? I see cars with American and Canadian plates all the time here in Mexico. 

[TakeruK]

Well my car is 2015, so I don't think it would have any problems with standards.

Do you know how much does it cost approximately to get the license, plates and stickers? 

The thing is that since I'm not an american citizen I won't be able to drive the car back to Mexico with US plates, and that beats the whole purpose of bringing it to the US (Austin Tx)

 

The Texas DMV (Department of Motor Vehicles) website can probably give you these estimates. In California, the license costs about $35, the plates and stickers (i.e. registration) costs me about $200 per year. The bigger cost is car insurance--I pay about $1200/year for fairly good coverage (I know others who pay about $600-$800 for less coverage). Overall, including maintenance, gas, insurance, parking, etc., I estimate owning a car to be about $2500/year here. If you include depreciation (or car payments), it is more like $5000/year.

 

I'm not sure about the thing about driving back to Mexico since I know almost nothing about Mexican vehicle laws! I do know that these rules can be weird/tricky--for example, Canadians are not allowed to drive US rental cars back into Canada (but Americans can). However, this rule might have changed recently.

[.letmeinplz//]

Why not? I see cars with American and Canadian plates all the time here in Mexico. 

You don't see a problem with mexican plates strolling around a state with heavy DHS/CBP/USBP activity? It might save them some time having US plates...

Edited April 24, 2015 by <ian>

[GeoMex]

Why not? I see cars with American and Canadian plates all the time here in Mexico. 

 

Because if you as a Mexican pass a non-mexican car to Mexco, unless you have a permit to do so, your car will be taken.

[GeoMex]

The Texas DMV (Department of Motor Vehicles) website can probably give you these estimates. In California, the license costs about $35, the plates and stickers (i.e. registration) costs me about $200 per year. The bigger cost is car insurance--I pay about $1200/year for fairly good coverage (I know others who pay about $600-$800 for less coverage). Overall, including maintenance, gas, insurance, parking, etc., I estimate owning a car to be about $2500/year here. If you include depreciation (or car payments), it is more like $5000/year.

 

I'm not sure about the thing about driving back to Mexico since I know almost nothing about Mexican vehicle laws! I do know that these rules can be weird/tricky--for example, Canadians are not allowed to drive US rental cars back into Canada (but Americans can). However, this rule might have changed recently.

 

I have to check these things out before I travel with it. I don't want to get in trouble for free