What You Need to Lease a Car as a non-U.S. Citizen: A Guide
As a recent immigrant, international student, and/or foreign national, you’re probably wondering whether or not you can lease a car. The short answer is yes, but a lack of any U.S. credit history can make things difficult. In many cases, leasing a car may not even be your best option. Read on to learn more about how leasing a car works and whether or not it’s even a good idea for a non-U.S. citizen.
What to Know Before Leasing a Car in the U.S.
It’s possible to lease a car as a non-U.S. citizen, but you need to be able to provide a valid permanent or semi-permanent residency address in the States. This could include an F1 student visa, work visa, or green card.
Whether or not leasing a car makes sense will depend on your own personal circumstances. For example, if you know you only need a car in the short term, leasing a car is more affordable in the short run. Leasing also provides the opportunity to try out the latest cars without buying them outright. On the other hand, there are some definite downsides that come along with leasing a car. Leasing comes with pesky restrictions, fees, and requirements. Not to mention, leasing a car over the long term is almost always more costly than purchasing outright.
Questions to Ask Before Leasing a Car
Do you want to lease a new or used car?
On average, how many miles do you plan to drive in a year?
Will you be able to keep the car in good condition to avoid extra charges?
Are there any lease specials you can take advantage of?
What is the Vehicle Residual Value (how much your car is worth at the end of the lease/how much you can buy the car for once the lease is up)?
Do you understand all of the taxes and fees associated with leasing?
What Do You Need to Lease a Car as a Non-Citizen?
If you want to lease a car as a non-U.S. citizen or international student, you’ll need to meet the various requirements listed below:
A good credit score and history (As a non-U.S. citizen, you won’t have an established U.S. Credit score or history, but may still be able to secure a lease)
Proven ability to make payments
A valid driver’s license (You can apply for a U.S. driver’s license if you are staying in the U.S. on a long-term basis)
Car Insurance (Minimum auto insurance standards are required on leased cars)
Gap Insurance (Optional but recommended)
How to Secure an Auto Loan as a Non-U.S. Citizen
If you decide you want to purchase a car rather than lease, you’ll probably need to take out a loan or find additional funding. Securing an auto loan as a non-U.S. citizen comes with plenty of roadblocks. That’s because lenders in the States rely on credit history and scores, which new immigrants and non-citizens may not already have. You can learn more about building credit as an immigrant here. When it comes to auto loans, you’ll also be required to make a downpayment of approximately 20% for new cars and 10% for used cars.
Your best bet for securing a car loan as a new immigrant is to look for personal loan providers that cater to undocumented immigrants. You’ll still be required to provide additional documentation to make up for a lack of U.S. credit history. At the very least, you’ll need to provide a visa, passport, letter from employer, proof of income, proof of legal presence, proof of residence, and a valid US driver’s license.
As an international student, you may be able to take advantage of additional auto loan programs meant for foreign nationals.
Grow with Upwardli
A car may or may not be essential for your life in the US, but a credit score is non-negotiable. That’s where Upwardli can help! Upwardli was created to help those newly arrived build their credit history and credit score and access the financial services they need.
