How to Buy a Car in the U.S. as an International Student (2025 Guide)
Buying a car as an international student is possible, but you will need to prepare for these key hurdles:
Financing Challenges: Without a U.S. credit score, getting an auto loan or lease can be tough. Some banks and dealerships offer special financing options, but they may require a larger down payment or a co-signer.
Paperwork Requirements: You will need proper documentation, including a valid passport, visa, Form I-20, driver’s license, and proof of residence. Some states may have additional requirements for vehicle registration.
Insurance Costs: Car insurance is mandatory in the U.S., and international students often pay higher premiums due to a lack of local driving history. Shopping around and looking for student discounts can help lower costs.
Understanding these challenges and planning ahead can make the car-buying process much smoother. In this guide, we will walk you through everything you need to know to get the best deal on a car as an international student in 2025.
Can International Students Buy a Car in the U.S.?
Yes, international students can buy a car in the U.S., but they must meet specific legal and financial requirements. While there are no federal restrictions on car ownership, students must provide the necessary documents and comply with state-specific laws for registration and driving.
Required Documents:
To buy and register a car, you will typically need the following:
Passport & Visa: Proof of legal entry into the U.S.
Form I-20 or DS-2019: Verification of student status and school enrolment.
U.S. Driver’s License: Required to drive legally and register a vehicle in most states. Some states allow foreign licenses for a limited time.
Proof of Address: A utility bill, lease agreement, or bank statement confirming your local residence.
Auto Insurance: Mandatory in all states before registering a vehicle.
State Law Differences: New York vs. California
Car registration and licensing laws vary by state. Here is a quick comparison:
New York: Requires a Social Security Number (SSN) or an ineligibility letter from the Social Security Administration to apply for a state driver’s license. Students can register a car with an out-of-state license but must get a NY license within 30 days.
California: Allows international students to drive with a valid foreign license for their entire stay. However, registering a car requires proof of residency, such as a lease or utility bill. California also has stricter emissions standards, meaning additional inspections may be needed.
Buying a car as an international student is possible, but understanding state-specific requirements is essential. Research local DMV rules before making a purchase to ensure a smooth registration process.
How to Finance a Car Without a U.S. Credit History
Financing a car as an international student can be challenging due to a lack of U.S. credit history. Most lenders check your credit score to determine loan eligibility, and without one, securing an auto loan can be difficult. However, there are still options available to help you purchase a car.
Financing Options for International Students
Paying in Full with Cash
The simplest way to buy a car is to pay in full with cash. This avoids loan approval issues, interest rates, and monthly payments. However, it requires significant savings upfront.
Auto Loans from Banks and Credit Unions
Some banks and credit unions offer auto loans to international students, but approval can be tough without a credit history. Larger banks may require a U.S. Social Security Number (SSN), while some credit unions cater specifically to non-residents. Be prepared to provide proof of income, visa status, and a larger down payment.
Special Financing Programs for International Students
Certain lenders specialize in financing cars for students without a U.S. credit score. Companies like Stilt and Boro offer car loans based on factors like your visa type, education level, and financial stability. These loans often have higher interest rates but provide an alternative to traditional bank loans.
Getting a Co-Signer to Improve Loan Approval Chances
A co-signer with good credit (such as a U.S.-based relative or friend) can significantly increase your chances of loan approval and secure better interest rates. The co-signer agrees to take responsibility for the loan if you fail to make payments.
If financing is a challenge, consider alternative options like leasing or purchasing a certified pre-owned vehicle. Research different lenders and compare rates to find the best deal for your situation.
How to Get Car Insurance as an International Student
Car insurance is mandatory in the U.S., and driving without it can lead to heavy fines, license suspension, or even legal trouble. Most states require liability coverage at a minimum, while some mandate additional coverage like personal injury protection (PIP).
Finding Affordable Car Insurance
International students often face higher insurance rates due to a lack of U.S. driving history. To find the best rates, consider:
Comparing Quotes: Use online tools or contact multiple providers to compare prices.
Choosing the Right Coverage: Liability-only policies are cheaper but may not cover damages to your car. Full coverage provides better protection.
Checking with University Programs: Some schools partner with insurers to offer discounted rates for students.
Tips to Reduce Car Insurance Costs
Take Advantage of Student Discounts
Many insurance companies offer discounts for good grades. Maintaining a high GPA can help lower premiums.
Bundle Policies
If you rent an apartment, bundling auto and renters' insurance with the same provider can lead to significant savings.
Opt for a Higher Deductible
Choosing a higher deductible lowers monthly premiums, but you will pay more out of pocket in case of a claim.
Use a U.S. Driving Record (If Available)
If you have been in the U.S. for a while and have a clean driving history, some insurers may consider this for better rates.
Shopping around and taking advantage of discounts can help international students secure affordable car insurance while staying legally compliant.
How to Register a Car and Get a Driver’s License
Registering your car and obtaining a driver’s license are essential steps for international students driving in the U.S. Each state has different rules, but the process generally includes submitting documents, paying fees, and passing required tests.
How to Register a Car in the U.S.
Car registration is mandatory and must be done through the Department of Motor Vehicles (DMV) in your state. Here is what you will need:
Proof of Ownership – Vehicle title or bill of sale.
Valid Driver’s License – Some states accept an international driver’s license temporarily.
Proof of Insurance – Minimum coverage varies by state.
Smog or Emissions Test – Required in some states like California.
Registration Fees – Costs vary by state and vehicle type.
After submitting the documents and paying the fees, you will receive license plates and a registration sticker for your car.
How to Get a Driver’s License as an International Student
Most states require international students to get a local driver’s license if they plan to drive long-term. The process usually involves:
Providing Documents – Passport, visa, I-20, proof of residence, and Social Security Number (if available).
Passing a Written Test – Covers road signs and traffic laws. Some states offer study guides online.
Taking a Vision Test – Ensures you meet the state’s eyesight requirements.
Passing a Road Test – A driving examiner evaluates your skills on the road.
State-Specific Requirements
Each state has different rules for car registration and driver’s licenses:
New York – Allows international students to drive with a foreign license but recommends getting a NY state license for long-term stays.
California – Requires non-U.S. citizens to apply for a state driver’s license within 10 days of moving if they plan to drive regularly.
Check your state’s DMV website for exact requirements to ensure compliance and avoid fines.
Additional Costs to Consider
When buying a car in the U.S., it is important to factor in more than just the purchase price. Several additional costs can impact your overall budget, both upfront and on an ongoing basis.
Sales Tax, Registration Fees, and Other Costs
Sales Tax – This varies by state and can range from 4% to 10%. Make sure to factor this into the total cost when purchasing a car.
Registration Fees – You'll need to pay fees to register your car, which vary by state and vehicle type. These fees may also include a smog or emissions test.
Title and Documentation Fees – These are required for transferring ownership and typically cost between $50-$200, depending on your state.
Ongoing Expenses
Gas – Fuel costs vary based on your car’s fuel efficiency and how much you drive. Be prepared for regular expenses, especially if you are driving long distances.
Maintenance and Repairs – Routine maintenance like oil changes, tire rotations, and brake checks are essential to keep your car in good condition. Budget for occasional repairs, especially if you buy a used car.
Insurance – As mentioned earlier, car insurance is mandatory and can be a significant monthly cost. Rates will depend on your car model, driving record, and coverage options.
Tips for Budgeting Wisely
Set Aside a Car Maintenance Fund – Save for ongoing maintenance to avoid financial surprises.
Track Fuel Usage – Monitor how often you are filling up to assess your car’s fuel efficiency.
Shop for Insurance – Compare insurance quotes to find the most affordable plan that meets state requirements.
Planning ahead for these additional costs will help you budget more effectively and avoid unexpected financial strain.
Best Places to Buy a Car as an International Student
As an international student, finding the right place to buy a car is key to ensuring you get a good deal and avoid frauds. There are various options available, each with pros and cons.
Dealerships vs. Private Sellers
Dealerships – Buying from a dealership offers more security, as they often provide warranties, vehicle history reports, and financing options. Dealerships can be more reliable for international students, especially if you need assistance with paperwork. However, prices may be higher compared to private sellers.
Private Sellers – Buying from private sellers can save you money, but it carries more risk. You will need to be cautious about the car’s condition and ensure the seller is legitimate. There is no warranty, and the paperwork can be trickier to navigate.
Trusted Websites for Car Shopping
CarMax – Known for its hassle-free experience, CarMax offers a wide selection of used cars with fixed prices and a 7-day return policy.
Autotrader – Autotrader allows you to search for new and used cars from dealerships and private sellers, with various filtering options to help you find the best car for your needs.
Craigslist – While Craigslist is a popular platform, it requires extra caution when buying from private sellers. Always meet in safe locations and request a vehicle history report.
How to Spot Scams and Avoid Bad Deals
Check Vehicle History – Use services like Carfax to check the car’s history for accidents or title issues.
Verify Ownership – Ensure the seller has the title in hand and that it matches the car’s VIN.
Avoid Deals That Are Too Good to Be True – If a deal seems too cheap or the seller pressures you for quick payment, it is likely a scam.
Get the Car Inspected – Always get a mechanic to inspect the car before buying, especially from private sellers.
By buying from reputable sources and being diligent in your research, you can find a great car without falling victim to scams.
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