How to Buy a Used Car as an International Student in the U.S.

To some, it is a luxury; to all, it is a necessity, especially in the USA. Yes, today I will be talking about cars. If you are not living in a busy metro in the USA, reliable public transportation is one of the common challenges you will face. Not every city in the USA is like NYC, where you can take a subway ride after midnight. Even if you have accessible public transportation around, it will not meet all your needs. Ridesharing or private taxis are expensive, especially during busy hours the cost of riding will break your bank. You will ultimately look to buy a used car, and if so, then here is a step-by-step guide to help you through the process.

Stick to the Budget:

As international students, most of us prefer to live in a shared apartment unless we have a family. And that gives you a lot of flexibility regarding finance because you save a hefty amount of money from rent. This might tempt you to maximize your budget up to 8 to 10K USD to buy a used car. Don’t do that. First, you will be spending most of your time in the lab during weekdays; your university is perhaps 10-15 minutes of walking distance from your place and the nearest Walmart is probably 15-20 minutes away. Your Saturday will be spent on doing groceries, dining out outside – that’s it. So, your car 8-10 K USD car will be just an overkill for you unless you live 20-30 minutes driving distance away from your workplace. Talk to local people while budgeting for a car that fits your daily needs. You will find better suggestions. Anything around 5-6K USD would be a reasonable budget for a used car after the post-COVID period.

Keep Calm and Do Research:

Do not rush to buy your first car. If you are an international student from an average socio-economic background, you would be very excited to buy your first car in the USA. Being excited is OK, but do not let it overpower you. Your budget is somewhat fixed, and now your job is to find the best deal for you. You can always find used cars throughout the year, but generally, the market gets flooded with used cars by the end of the year or just after the semester ends. Plenty of students graduate at the end of the Fall or Spring semester, and unless it is a major industrial city or state, most of them move out of state with a job, and just before that, they sell their cars. In any winter state, the demand for the car increases when the snow is about to start, and so does the price. There are so many local variables that drive the price of used cars in the market.

Go for Known Brands:

With proper maintenance, a Toyota car can easily reach 300K miles. The same goes for Honda as well. Japanese cars, especially Toyota, are well known for their durability and low maintenance costs. But they come with a steep price due to market demand. There are good alternatives to Toyota, such as the Hyundai Elantra, a strong competitor to the Toyota Corolla. American cars are good for driving up to 100 K miles; after that, maintenance becomes a headache. European cars will be like blackhole and will often suck money from your pocket. Try to buy Japanese cars – they are famous for reliability. A reliable used car will not make any holes in your wallet. To learn about reliabilities, you might check this website which offers detailed information on reliability, recalls, and owner-reported problems so that you can evaluate a specific car model for potential issues.

Dealership vs. Private Seller:

Any dealer will squeeze every penny out of our pocket. Their objective is to maximize profit. While they may charge slightly higher prices, they often inspect and service their cars before selling. Some offer warranties or certified pre-owned programs for added peace of mind. Dealerships may also handle paperwork like registration more easily. 
On the other hand, you might find great deals from private sellers. However, private sellers typically sell vehicles “as-is,” you’ll have to manage most of the paperwork, including title transfer and registration. Always be cautious of scams when buying from a private party and thoroughly inspect the vehicle.

Before you decide:

You should always ask the seller for the VIN and check the vehicle history report from companies like Carfax or AutoCheck. Such a report unveils critical information such as number of previous owners, major or minor accidents, title status (clean or rebuild), odometer readings, and maintenance records (to some extent). Try to buy a car with a clean title. Any car with a salvage title will have a higher insurance rate. On top of that, it is difficult to assess the structural integrity of a car that ran into an accident.

Inspect the Vehicle:

Once you have reviewed the vehicle history and are satisfied with it, it’s time to inspect the vehicle. Whether you purchase from a dealer or a private seller, inspecting the car is crucial. Here’s what to focus on:

  • Exterior: Look for signs of rust, dents, or paint damage. Ensure the tires are in good condition with even tread wear.
  • Interior: Check seat upholstery, dashboard, and functionality of electronic systems (air conditioning, speakers, etc.).
  • Under the Hood: Inspect the engine for leaks, strange smells, or corroded parts. If you’re unsure, hire a trusted mechanic to do a more thorough inspection.
  • Test Drive: This is the best way to assess the vehicle’s condition. Pay attention to braking, acceleration, and any unusual noises.

You will find tons of videos on YouTube that will teach you about the basic inspections of a car. Just watch a couple of them, and you will have a good idea of what to look for.

Before you Pay:

If you buy from a dealer, the salesperson will take care of the paperwork. However, while buying from a private seller, you have to put some extra effort into finishing the paperwork, such as title transfer and bill of sale. Before you hand over the cash, you should go to the DMV first with the seller and ensure that the title is transferred. Vehicle registration is a fairly easy process, and it won’t take much time. But never ever pay someone before the title is transferred.

Buying a used car in the United States as an international student can be a straightforward process if you do your homework and plan carefully. Determine your budget, research different car models, inspect vehicles thoroughly, review their history, and handle the paperwork properly. Obtaining a reliable used car will give you the freedom to explore the country, commute to campus, and make the most of your American education experience. With careful planning and thoughtful decision-making, you’ll be hitting the road in no time.

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