Car loans in U.S. for non-citizens
In many areas of the United States using your own car is a necessity because there is no access to public transportation. The country is a homeland for expats from all over the world, who still don't have local citizenship and it would be a big omission to cut off their opportunities to apply for auto loans. That is why today lenders accept applications from non-citizens.
The key success factor is good credit history in the country of relocation. As you probably already know every immigrant has zero credit history once arrived to the U.S.. Most auto loan lenders will consider zero history as a credit risk. You can learn the detailed steps to break the ice in our article: Ways out of zero credit score for USA immigrants.
The easiest way for immigrants or temporary residents to obtain a car is to ask for the assistance of companies, specialising in purchasing and leasing cars to foreigners. They can also provide advice on how to obtain car loans for students with no credit or how to carry out refinancing an auto loan with bad credit.
International AutoSource experts recommend non-citizens to prepare from 10% to 20% downpayment for the purchase and extend auto loan for the term of visa duration.
Documents
To apply for an auto loan in the U.S., foreign national or expatriate will need to provide completed application, which includes details about your workplace and accommodation in the country, the purpose of the loan and the facts of your personal credit history.
You will also need to show an emplоyment letter confirming the sources of your cash flow: the size of your fixed paycheck at work and benefits as well as the length of your work contract. Lenders also consider social benefits.
The third obligatory document is a copy of your work visa to make sure that the duration of your stay in the U.S. is adequate to the term of auto loan.
This package of documents is enough for the initial auto loan application. Also be ready to provide your lender with copies of your paid bills related to housing, utilities, phone and Internet services. You will also need to collect papers related to insurance, both medical and auto. Depending on your particular case the document package will also include your social security card, permanent resident or green card, work permission.
In some areas of U.S. foreign car buyer will be obliged to pass driving license exams once again, while some states will be fully satisfied with your intention driving license. In both cases obtaining the license before arriving to U.S. will be a helpful move.
Insurance
Keep in mind that automobile insurance is an obligatory final step in car purchase or lease. Almost any auto credit agreement in the U.S. will require purchasing auto insurance, which is another challenge for immigrants. In the U.S. personal insurance rate is calculated regarding your driving and credit history in the country. That is why if you are newly arrived it makes sense to entrust the process to special companies familiar with the ways to reduce insurance rates to the level that common citizens pay.
