Facts about Leasing a Vehicle as an International Student, Traveler or Professional

You would definitely not be considering buying a car if you are supposed to be staying in the USA only for a short duration of time. You could opt for renting or leasing a car in case you are thinking of having access to a vehicle for such a limited time span. Some organizations offer carpooling programs also, that you could consider as they cater to your transportation requirements without leasing or renting. It is a fact that most international visitors including tourists, students or professionals who are relocating to the United States would definitely be requiring a car for commuting. Expats are however, not acquainted with the American car purchase procedure and are blissfully unaware of the hurdles and challenges that they would come across while trying to get a vehicle.

The Major Obstacle: Absence of Credit History

Expats would typically desire to lease or finance their car in the USA. However, it is pretty problematic to obtain credit for your auto lease or loan in the absence of any kind of US credit history. If at all you manage to get credit in the USA without a United States credit history, your rate of interest is going to be exorbitantly high in comparison to those with a valid US credit history. This results in depletion of your savings. You could provide about 10 per cent to 20 per cent down payment and opt for leasing within the time frame of the approved US visa.

Can You Lease A Car?

If you would be requiring a car for a few months or a year and you do not really desire to purchase a car, you could opt for leasing a vehicle from only a new car dealership. The car dealership would be asking for the copies of:

• Your DS-2019 or I-20 indicating your expected duration of stay
• A letter from your University, Institution or Organization stating that you are a staff, faculty, or full-time student or employee.
• Your valid International driver’s license having your recent pictured as well as your IDP (International Driver’s Permit)

Car Insurance A Must

Once you have leased or purchased a car you must get an auto insurance. You would need to buy full-coverage auto insurance on the leased vehicle. It is an essential prerequisite of your financial institution to get proper auto insurance in case you are having a lease or loan on your car. The auto insurance rate is actually determined by two vital factors including your driving history while you have been in the USA and your credit history here. You must however, be warned at this juncture that obtaining an auto insurance for an expat is as challenging as obtaining a car lease or loan.

Complete Licensing and Registration Formalities

It is mandatory for you to get your vehicle registered in your name before you start driving it. To register your car you need to provide your driver’s license and also, proof of insurance. At the time when you are going in for registration, you would need to make your sales tax payment for your car. You may note that in the United States sales tax is actually not included in the vehicle’s original price and is usually, paid when the vehicle is being delivered and registered. In case you have been successful in leasing your car, the sales tax would actually be incorporated in the monthly investment.

Author Bio: Mason Gardner is an automobile engineer who is working for a big manufacturer in Detroit. He enjoys the trade, and has been actively involved in it for nearly a decade. In his free time, he enjoys blogging and reading articles on sites like http://www.leasequit.com/.