Hey All:

Does the auto dealers or the financial institutions (banks and credit union) provide auto loans for non-residents. I need a car and my pocket is too shallow to pay cash. If they do then what are the crieria? Your advice is appreciated.

Yes, if you have good credit. Some do even if you don't but charge you high interest. And also you have to buy liability and collision as insurence which otherwise you can just do with liability. You're talking about 300 - 500 dollars for a new car every month and on top of that insurence so it's pretty steep as you are shallow in cash. My advise to you is to buy a car not more than 2000 and have a good ride with it. I suggest a Honda Accord Toyota Camry which can last you about 2-3 years with average maintenance.

Thanks. I am looking to buy a used one.
Is it best to go through a dealer or get hold of a financial instituton?

Better to go through your university credit union, if there is one. I got a loan for under 5% with my credit union... the lowest offer from the dealer was 7.5% for the same auto.

AC/DC and Harris had the best suggestions........If you are still in school, without a permanent job, it would be real hard to finance a car, and full coverage insurance on top of it is a back breaker...talking of experience, I bought a Honda Accord 92 back in 2000 and it still runs good, sure beats newer models in Gas efficiency, and maintenance.....Camry is good too ! No Mazda or Nissan if I were you !

joshi10, You can always try with the finance department at the car dealership but the chances are you will get a better APR elsewhere. Majority of dealerships look for chances to make of money out of you (surprise!!), so this is another point where they can rip you off. They always claim that they have hundreds of financial institutions that they can choose from.

One of the easiest things you can do is to go to your banking institution where you have checking and/or savings account and apply for the loan there. Most banks knock off 1/8 of a point if you enroll in their auto pay option (this option directly deducts monthly payment through your checking/ savings account without you having to write a check or money transfer).

Sometimes, it is better to check with credit unions (as it has already has been suggested) as they offer the lowest APR. So you have to shop around but make sure that you limit the number of financial institutions you inquire. Each credit run will affect your credit history.

Finally, make sure that you know the car that you want to buy, the price you want to pay before you walk into the dealership (this will take couple trips to the dealership) and the bank approval for the loan of the car. If the dealer can find you a better rate, you can always go with them. Also, delaer finance department will offer you various waranties and they will try to force you to get warranty, but you have to be able to deny those offers. Don't afraid to say "NO" when you deal with the auto dealerships...

Hope it helps!