The International AutoSource Blog

U.S. Car Loans for Foreign Nationals- Fact or Fiction?

Let’s face it. Driving your own car gives you flexibility and freedom to come and go as you please. But if you are living abroad can you get an auto loan if you are not a U.S. Citizen? The answer is: yes, you can.

Luckily, citizenship is not a factor in creditworthiness. Lenders primarily base their loan decisions on borrowers having a verifiable and positive credit history. Since you will be securing credit in your name without a U.S. credit history, other forms of documentation may be required, including:

• Finance/Lease Qualification Form- requests information about your assignment, credit history, living arrangements and employment in the U.S.
• Copy of Work Visa in the U.S.- helps finance companies verify your intention to stay in the U.S. for the duration of your lease and loan term.
• Employment Letter- confirms your salary, additional benefits and allotments, as well as your term of employment.
• Housing related payments- including rent, utilities, phone bills, and cable TV service.
• Insurance-related payments- including medical, life and automobile insurance. Note: an automobile insurance binder is required in order to take delivery of your vehicle.
• ITIN- even if you are not a U.S. taxpayer, the Individual Taxpayer Identification Number issued by the Department of the Treasury is commonly used for opening a bank account and getting a driver’s license.
• Ability to pay the loan back- copies of current paystubs and recent W-2 forms show proof of steady employment. At least a 12-month employment history is typically required.
• Proving that you are “lawfully present” in the U.S.-  documents showing this can include a Driver’s License, Passport, Social Security Card, a Permanent Resident or Green Card, an Employment Authorization Document Card, and your Visa with a legible entry stamp.

Whether financing through a car dealership or through a lender, getting into the driver’s seat in the U.S. is just a few steps away…

Apply- submit a loan application with your personal and employment information, required documentation and the loan amount, (price of the vehicle plus sales tax).

Get a Loan Decision- Turnaround time can take a few days or a few hours, depending on the lender. If approved, you will get a statement of intent listing specific payment details, surcharges, down payments, rebates, sales tax and your monthly payment.

Shop- Negotiate the best pricing you can for your favorite vehicle. Haggling is expected at most dealerships, so do your research. Having financing already in place can lead to exceptional pricing, especially at the end of the month when dealers have a lot of inventory they are trying to move out. Make sure to do price and rate comparisons because the “easier” and “faster” it is to apply and drive, the more likely it is that prices and loan rates are inflated to pay for these “conveniences.”

Sign your Contract- You will sign a finance contract in agreement to the terms provided when your loan was approved. It will include important details about your loan, and payments will coordinate with the price agreed upon when you shopped for your car.

Take Delivery- The car dealership will collect a registration fee from you of $200 or less in order to obtain license plates and a registration sticker on your behalf. Registration renewals are required every two years, which costs under $100. The Vehicle Identification Number (VIN) assigned at registration is required by your insurance agency in order to provide you with an auto insurance binder.

Drive into the Sunset- Soon you will be driving your own car to wherever the U.S. roads take you!

Feel free to contact AutoSource for more information on how we help you get financing on a car in the US!

Are we there yet? Tips for traveling with your children in the US

Traveling with your family can be an exciting and enriching experience. It can also be a bit daunting when children resist staying in their seats for long periods. Whether driving your car, taking a bus trip or flying to your destination, a little bit of prep-work before your trip can add some peace and tranquility to your travels.

Preparation- Let children know about your travel plans in advance by using the internet to show them where you are going. Keep a count-down calendar so your family knows when travel day is near. If your child gets over-stimulated or is unenthusiastic during travel prep, create a simple rewards program that ties cooperative behavior with earning vacation spending money. The goal is to get everyone on board and actively participating in your travel preparations.

What to pack- help your child navigate the unknown by holding onto something familiar. For school-aged children, provide a small back pack and institute an "if you can carry it, you can take it rule".  They can put a favorite stuffed animal, doll or small toy in their travel pack, as well as travel-friendly games, books and activities. Note to Parents: give contents final approval so that noise-making items like horns or kazoos are kept to a minimum, and toy guns and similar items are kept out of their bags, especially when flying. Sunglasses are a must, as the sun is bright in any season.

Comfort items- Since a full mouth gathers no complaints, snacks help to deflect and distract. Pretzels, cheese crackers, trail mix and other low-sugar items can buy you time between stops. Bringing drinks along helps too, (make sure to time when your children drink vs. rest-stop availability.) Consider bringing garbage bags and zippered bags for left-overs or wet items. Place a change of clothes, toothbrush, and wash cloth or travel wipes in an easily accessible place save you time and effort if your travels take longer than expected or present surprises along the way. Children especially like to bring their favorite snuggly pillow or blanket along with them, so if there is room, go for it!

What to play- from technology to simple pleasures, children travel better when they have something productive to keep them busy. Older kids will enjoy hand-held games, videos/DVDs, and CD or Mp3 players. (Remember those cords for recharging these techie toys!) Younger kids can enjoy a travel-size magna doodle or etch-a-sketch, model magic dry modeling clay, sticker books and coloring books with crayons. Everyone on the trip can play games including eye spy, license plate states, who can stay silent the longest, and sing-a-long songs.

Safety and good health on the road- Always discuss the importance of not speaking to strangers and staying together at all times. Remember Passports and ID and review knowing their name, phone number and address, as well as where you are going. Put business cards with your contact information in little one's pockets otherwise. First-aid kit items to remember can include sunscreen, motion sickness medicine, band aids and topical medicines, sanitizer spray and/or wipes, tissues, and a bit of toilet paper, just in case. Writing a checklist with medications will help you manage your first-aid kit once you are ready to pack it.

By engaging the entire family in travel preparations, everyone has something to do and to look forward to until travel day arrives. May your travels bring you laughter, enthusiasm and lots of terrific family memories!

Whats the Best Decision for You: Buying or Leasing a Car?

When it comes to vehicle purchasing, it is difficult to decide whether to buy or lease a car in the U.S. Both buying and leasing has its advantages, but determining what the right resolution is for you presents some challenges. Taking into consideration your driving preferences, amount of travel and lifestyle will help establish what the right choice is and will provide insight on future vehicle purchasing decisions.

Standard law in the United States declares that any person operating a motor vehicle must have a valid in-state driver's license. Each state has different driving laws to abide by, so make sure you receive the correct information on what these rules entail. Along with having a valid driver's license, you are required to have auto insurance before you receive the title to a car. This ensures that you will receive financial coverage in case of an accident, theft or damage caused to the vehicle. You will have to pay taxes, tag fees and a down payment along with your insurance.

To buy a car means you will own the vehicle and get to keep it at the end of the term. When you first buy a car, up-front costs include the cash price or a down payment, taxes, registration and fees, and other charges.

While buying a car, a customer is expected to put down at least 20 percent of the vehicle cost towards a down payment. When a buyer puts down 20 percent at the time of purchase, he or she has effectively paid for the first year's depreciation up front. This means that the buyer is not "upside down" on his or her loan. Being upside down means owing more on the loan than the car is worth. If you plan on buying a vehicle, there are a few pros and cons you need to consider:

Pros:

• You can decide between a new or used vehicle and sell the car whenever you choose.
• The car is yours and you can use the car as security for a loan.
• You many put as many miles on the vehicle and invest as much or as little as you choose in maintenance and repair.

Cons:

• The mileage, condition and popularity of your car will determine its final value.
• If you don't make your car payments on time and in full, your lender can repossess the car and resell it.
• If the resale price of the car is lower than the amount you own on your loan, you could get stuck paying the difference.

When you lease a car, you do not own the vehicle. A leasing company usually owns the vehicle, and lets you "rent" it over a specified period. You get to use it but must return the car at the end of the lease unless you choose to buy it.

With a car lease you are paying monthly installments, which will reflect an interest rate as well as the depreciation of the value of the car you are leasing. If you plan on leasing a vehicle, there are some pros and cons to consider:

Pros:

• The vehicle will most likely be new because used- car leases are hard to find.
• When the lease ends, you can return the car, or buy it for a previously determined price (the residual value).
• Your monthly lease payments will be lower than monthly loan payments for a comparable car.
• You'll be able to lease a more expensive vehicle than you can buy because lease payments only have to cover a portion of the car's entire cost.

Cons:

• You'll probably encounter a penalty if you: break the lease early, exceed annual mileage limits, don't meet a specific maintenance schedule, or fail to make the required monthly lease payments on time.
• You won't be able to pledge it as security for a loan because you don't own the vehicle.
• You'll have to pay for any repairs needed at the end of the lease period to make the car re-sellable.

Overall, for short- term deals it is cheaper to lease a car because they have low monthly costs. Although you will always have a relatively new car if you continue to keep leasing new- model vehicles, it is always more expensive to lease a car long-term than to buy a similar car and keep it for the same length of time. No matter what you choose, you will always have to make your car payments on time. If you fail to make proper payments, your credit record will suffer and you may ultimately lose the car.

Whether leasing or purchasing, be sure to weigh the pros and cons in your decision- making process that best supports your financial situation and mobile lifestyle.