Deciding to Purchase or Lease a Car
In the United States, it is often beneficial and even recommended for international students to have a car. One of the first and most important decisions for an international student to make is whether to lease a car or purchase one using an international student auto loan. There are benefits to both options but for most cases it is most beneficial for the student to purchase the car and finance the purchase with an international student car loan which is a type of auto loan for students with no social security number and no credit history.
The first reason why deciding to purchase a car using a car loan for international students is that it offers greater flexibility to the international student. Leasing arrangements are often hard to get out of if the student no longer requires the car and limits the number of miles the lessee is allowed to drive before being charged penalty overage fees. If the student finances the purchase with an international student car loan they are in a much better situation. The student would be able to sell the vehicle and pay off the international student auto loan with the proceeds from the sale. This is an important advantage that purchasing a car with an auto loan for students with no credit because the student’s situation may change, and they no longer can afford or require the car. It also allows the student to be able to drive the vehicle as much as they want because there is no penalty for mileage overages for a car that a student purchases with a loan. As many international students will be using the car on a regular basis to commute to and from school, this is an important advantage. Purchasing a vehicle with a car loan for international students also provides the additional flexibility of being able to personalize your vehicle. In the United States many people enjoy and take pride in the appearance of their vehicle. This can include changing the color of the paint, tinting the windows, changing the wheels, and adding decals or bumper stickers to make the car reflect your personality. If an international student decides to lease a vehicle these types of customizations would result in a penalty fee.
Another benefit for an international student to purchase a vehicle with an international student car loan is that it usually makes more sense financially. It is very important to live as economically as possible for many international students (and this goes beyond shopping for holiday gifts on Black Friday). Purchasing a car instead of leasing one helps in this area. There are two main reasons for this, the first of which is that when a student purchases a car they are able to drive the car for as long and as often as they want. As opposed to leasing a vehicle which is only for a limited time period, usually around 3 years. This allows the international student to spread out the cost of the vehicle over many years as long as they keep the car in good working condition. The second reason that purchasing a car can be a more financially sound decision is that the payments the student makes go towards equity or ownership in the vehicle. This creates a valuable asset that the student can sell or use to trade-in for their next vehicle after their auto loan is paid off. The student can also decide to keep the car and continue driving it without having to make any additional payments for it.
At Nomad Credit, we can help you find auto loan options that do not require credit history or a social security number as well as answer any questions or concerns you may have while studying abroad in the United States. For more information, visit Nomad Credit. In addition to international student auto loans we will happily help you find the best option for international student education loans or study loans as well. If you have any questions, send an email to firstname.lastname@example.org and we will happily help!