Compelled to Have a Car?

Since most students are on a limited budget and most universities are accessible via public transportation, we recommend that you stick it out with public trains and buses, bicycles, and rollerblades while you are studying. We suggest that you consider the idea of buying or leasing a car, should you still want to, once you find employment.

You must remember that when you buy or lease a car, you not only have to pay for the car monthly, but that you also have to pay for car insurance, parking, parking tickets, car washes, maintenance every 3,000 miles, etc. In Tokyo, you cannot even buy a car unless you can prove that you have a parking space for it! In Japan and the UK, you also have the additional challenge of learning to drive from the right side of the car.

An additional procedure you may have to go through is to change your Philippine or international driver's license to a local driver's license. And depending on the rules of your local motor vehicle’s office, you might be required to take the driving test or written test again. Another warning, for some reason, in the US, most Department of Motor Vehicles offices always seem to have long, long lines. It took Titchie, almost five hours to get her driver's license, the actual test only took 15-20 minutes. The rest was spent waiting! Bring something to read when you go.

Once you have made the decision to buy a car, our advice is to make sure that you do all the necessary research before showing up at a car dealership. Car company's web sites usually have all the information that you need: car features, accessories, colors, mileage information, price. Another piece of advice: “If you are female, bring along a male companion, it's sad but that's the reality,” says one of our interviewees. We hate to generalize, but too often many dealers assume that women don't know anything about cars. And yes, you’re a foreigner to boot.

Once you've chosen which car you like and the features that you absolutely need and can afford, go to the car dealership with your guarantor or co-signor and begin the car purchasing/leasing process. The dealer will usually try to convince you to purchase more warranties or additional features as you sign the paperwork so it’s best that you know what you want before you close the deal.

Similar to the guarantor for apartments, the co-signor to your car loan is a legal resident of that country who will assume the responsibility of paying for your loan should you default. Inform the co-signor that their credit history will be checked since you as an international student do not have a credit history yet.

You should also consider used cars (also called pre-owned cars) which are advertised in newspapers, websites (like Craigslist.com in the US), or in the car dealership. You can usually get these at a lower cost. Test drive the car before you buy it, and ask a friend who knows about cars to come with you so he or she can help you inspect the car and see how well it runs. Check the car’s documentation (registration, inspection certificates, etc.) to make sure that these are all in order.

In the US, one is usually expected to make a 20% down payment for new cars, after which you pay the difference via the dealership's credit business monthly. One is also required to have car insurance when purchasing a car. Car insurance rates depend on where you lived, and can be obtained by applying for it on your own or though the car dealership.

Finally, once you have purchased or leased the car, keep track of the mileage you are putting on it. The less mileage there is the more you can get for the car should you want to sell it later.