The answer is a simple yes. You can definitely buy a car without a driver’s license. However, you’ll have to jump through a couple of additional hoops.
While there is no legislation requiring you to have a driver’s license in order to buy a car, not having one may pose issues during the car-buying process, such as securing an auto loan or purchasing insurance. Furthermore, rather than doing everything online, you may need to have face-to-face talks.
Basically, you’ll need a legitimate form of identification if you don’t have a driver’s license, such as a state-issued ID card. Let’s find out other requirements that come with financing a car without a license.
Is it Legal to Buy a Car Without a Driver’s License?
There is no law in the United States that needs you to obtain a driver’s license in order to purchase a car. However, there are parts of the process before and after the purchase that may be difficult for someone who does not have a license. They include the following;
#1. Insurance
If you don’t have a driver’s license, getting auto insurance for your vehicle might be difficult and expensive. Traditional insurance companies may even refuse to cover you. If you are eventually able to obtain coverage, you’ll almost certainly pay more because insurers consider unlicensed drivers to be riskier than licensed drivers.
Meanwhile, consider dealing with an independent insurance agent who can provide rates from numerous insurers and may better understand which firms would insure unlicensed drivers. This will save you time.
You can also add a co-owner during the purchase process, and they will be able to apply for insurance coverage for the vehicle.
Finally, you can choose another household member with a driver’s license as the primary driver.
#2. Financing
To acquire a car loan, you don’t technically need a driver’s license. However, if you don’t have another form of photo identification, the lender may reject your application because you won’t be able to confirm your identity.
Obtaining a state photo ID, which you can show to potential lenders, is a simple solution to this problem.
#3. Registration
To register the vehicle, you may require a driver’s license, depending on where you live. You may be able to get by with another kind of picture identification in some situations but double-check your state’s rules before commencing the car-buying process.
Of course, if you live in a state that requires a driver’s license and have a licensed co-owner, they can use their license to register the vehicle.
More on these later in this article.
Why You Would Buy a Car Without License
The majority of people looking to Buy a car have a driver’s license, but there are lots of reasons why someone without one would want to buy a car. Some of these reasons include;
- Making a gift purchase: You don’t have a driver’s license, but you want to surprise a friend or family member who will be the licensee.
- Having a personal driver: You wish to purchase a vehicle for someone with a driver’s license who will drive you around and assist you with your needs.
- In the process of getting your driver’s license: You want to acquire your driver’s license, but first, you want to buy a car so you may practice driving with a licensed driver.
- Being the proprietor of a company: You want to expand your company’s vehicle fleet so that your employees can use it.
- You’re a car aficionado: You want to buy an automobile to add to your collection, but you don’t intend to drive it.
However, you won’t be allowed to take the automobile for a test drive or drive it home after you buy it unless you have a valid driver’s license.
What Happens If My Driver’s License Is Suspended?
A typical issue borrowers have is how a suspended license affects their ability to buy a car. It is possible to buy a vehicle with a suspended license, however, it is dependent on the state in which you reside. If you get authorized for financing with a suspended license, keep in mind that you won’t be able to drive lawfully until your license is restored.
It’s not easy to wait out the suspension, but it’ll be worth it in the end. Additionally, you will have plenty of time to review your credit reports and scores, conduct vehicle research, create a budget, and prepare for a down payment.
How to Buy a Vehicle Without a Driver’s License
You can buy a car and do (essentially) everything else that comes with car ownership without having a driver’s license in a few different ways. You have the following options:
- For insurance, financing, and registration purposes, naming someone who is licensed as a co-owner.
- On your insurance policy, choose a licensed member of your household as the primary driver.
- When looking for a car loan, look for lenders who don’t require a driver’s license.
- Having a good credit history helps the lender avoid other dangers.
- Consulting an insurance agent who can assist you in locating an insurer willing to operate with unlicensed proprietors.
Alternatives to Financing a Vehicle If You Don’t Have a Driver’s License
There are a variety of reasons why someone might be without a driver’s license. Here are some possible alternatives to buying the car, depending on your situation:
- Rideshare Services: If you only need to move around once in a while, consider using a rideshare service such as Uber or Lyft to get around.
- Public Transportation: Depending on the quality of public transportation in your city, this may be a great, as well as a less expensive, choice. If you reside in a rural or suburban region, however, this option may not be available.
- Bicycle: Riding a bicycle is another option for getting to your destination.
- Get a driver’s license: If you plan to drive the car at all, you must have a valid driver’s license. Even if you don’t, earning your license can help you solve a lot of problems, especially if none of the other options listed are available to you.
The Difficulties of Financing a Car Without a Driver’s License
If you find yourself in a situation where you need to buy a car without a license, there could be a lot of speed bumps in your way.
Insurance
For starters, car insurance is a requirement in most jurisdictions and is an important part of owning a vehicle. An insurance policy not only protects you financially in the event of an accident, but it also protects the drivers around you from unexpected costs.
Insurance companies usually want your driver’s license number when you apply for car insurance, which is difficult when buying a car without a license. Some insurers, on the other hand, are more lenient and will insure a vehicle purchased by an unlicensed driver if you give them the necessary information.
To decide the specifics of a policy and its pricing, car insurance companies need to know who the licensed primary driver of the vehicle will be. On the policy, you’ll still be listed as an excluded driver.
Registration
As earlier mentioned, the registration of your vehicle is the next area that could cause problems. No matter where you live, you must register your car with the Department of Motor Vehicles before it can be driven on public roads and highways. This is where you’ll hit a snag because you’ll need a valid driver’s license to register a car in your name.
This means that you can’t buy a car without a driver’s license if you want to drive it legally on public roads.
In other words, while you may be able to purchase or buy a car without a driver’s license, you will not be able to register it in your name.
Financing
The difficulties in obtaining financing while purchasing an automobile without a driver’s license are next on the list. A photo ID is usually required when applying for a car loan. Although there are alternative types of picture identification beyond a driver’s license, a lender may be concerned if you don’t have one. And, while a lender may be ready to work with low-credit applicants or those on a strict budget, they may be wary of those without a driver’s license.
Purchasing A Car While Holding A Learner’s Permit
If you don’t have a driver’s license, a learner’s permit can make the process of obtaining a vehicle much easier.
However, getting insurance with a learner’s permit can be difficult, but it’s not impossible. Some firms will cover drivers who have a learner’s permit, but only under strict restrictions and at a higher cost.
You can drive with a learner’s permit as long as a licensed driver is in the passenger seat. As a result, if you wanted to buy a car and test drive it beforehand, you could do so even if you didn’t have a license, as long as you had your learner’s permit.
Obtaining a Car Loan Without a Driver’s License: Potential Roadblocks
Most lenders should not have any problems if you apply for an auto loan on behalf of someone else, such as a family member, without a driver’s license. If you’re applying on your own behalf, though, a lack of a driver’s license may be viewed as a danger by some lenders.
You may not intend to drive the vehicle until you obtain a valid driver’s license, but the lender would be unlikely to continue making monthly payments if you were jailed or penalized for driving the car for which your loan was approved without a valid driver’s license.
How to Get Funding
Dealerships have different procedures when it comes to financing customers who do not have a driver’s license. Unfortunately, many lenders may refuse to lend to someone who does not have a license for a variety of reasons.
However, a salesperson may be willing to supply you with a financing plan if you explain your condition. You’ll need a government-issued photo ID, a bank statement, and, if necessary, verification that the DMV hasn’t suspended your license.
Meanwhile, when developing a financing plan, the salesman will also examine your credit score and ability to pay monthly payments.
To Maximize Savings, Keep Your Credit in Good Shape
It is crucial to establish and maintain good credit in order to save money during the car-buying process. It will not only make it simpler to qualify for a low-interest loan, but it will also result in lower auto insurance rates in many jurisdictions. Furthermore, having high credit will make it easier for you to obtain reasonable finance for other uses in the future.
On the other hand, building credit takes time, especially if your credit reports contain bad entries. To get a sense of where you stand, check your credit score. Also, obtain a copy of your credit report to analyze any areas that may require attention.
There are many strategies to build credit, but paying your bills on time and getting caught up on past-due payments, as well as paying down credit card balances, are two of the most effective.
Summary
Buying a car without a driver’s license is perfectly legal, but it’s a lot more complicated than buying with one.
If you’re in the process of learning how to drive and looking to buy a car, consider waiting to get your license before making the purchase. If you do not intend to drive yourself, the information provided above will assist you in determining how to proceed.
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