In the United States, because of the inconvenience of public transportation, plus the price of buying a car is not expensive, so many Americans will choose to buy a car in installments, so for us who just came to the United States to study or live, because of limited funds, very much want to buy a car in the United States also on loan, how to operate? Now I just came to the United States to share my experience of loan to buy a car, I hope it will be helpful to you.
There are several ways to get a loan in the United States.
I . U.S. bank credit lenders
When you purchase a car through a bank loan, the bank will generally assess the value of the vehicle more accurately and tell you if it has been sold at a higher price.
In addition, the bank’s interest rate is usually the same for the entire loan term, so you don’t have to worry about paying off the loan early.
However, it is not very convenient for international students to get a loan through a bank or credit union because the bank will evaluate your credit history and immigration status to decide whether to approve the loan, the loan term, and the interest rate. For those who are new to the U.S., it is very difficult to get approved for a loan, and even if you are approved, the interest rate can be very high.
For F1 visa students, banks will not offer loans for longer than the maximum period of stay in the U.S. as stated on the I-20.
II. Loans from car dealers
Loans from car dealers are easier to get approved, and the interest rate (APR) and loan term (Term) are more flexible.
When some models are on sale or clearance, car manufacturers sometimes offer low or even 0% interest rates, so you can enjoy the discount if you have a certain credit history when you purchase a car through a car dealer.
Car dealers generally do not examine the status of international students as banks do and can offer longer loan terms, but without understanding the U.S. auto market situation, plus the language communication difficulties, it is easy for salespeople to add extra fees or use low interest rates to
However, if you don’t know the market situation in the U.S. and have difficulty in language communication, you may be easily trapped by the salesperson who adds extra fees or increases the car price with low interest rate.
III. Mortgage property loan to buy a car
If you have a property in the United States, you can also mortgage the property to purchase a car, not only can you reduce taxes, interest rates are also lower, but then the car and the house are bound, there are certain risks. This channel is less used, so I won’t go into details.
Four. Relatives and friends to guarantee the loan to buy a car
If your credit score is not enough and you want to get a lower interest rate and a longer loan term, you can also ask a relative or friend with a good credit history to help guarantee the loan. But there are risks involved in making a guarantee, and unless you are an immediate family member with a particularly close relationship, people are generally not willing to make guarantees for others.
