Can You Buy a Car Without a Driver’s License?

Getting around the streets by car is a dream for many. But can you make the dream come true without a driving license? Can you buy a car without it?

The short answer is yes. Buying a car without a license is not a crime. In addition, it is legal for a car buyer to get an auto loan without it. However, it is a completely different question as to whether a lender will actually want to provide an auto loan to such an auto buyer.

Why do lenders avoid lending automatically without a driver’s license?

Lenders know that you are more likely to continue paying for something if you use it. And you won’t pay the loan if you can’t drive your car. Hence, they refrain from providing auto loans to car buyers without a driver’s license. There are many other reasons such as:

1. Car Insurance

Auto insurance protects lenders in the event of an accident or theft. They know that if your car is totaled or you don’t have a car, you are unlikely to make payments. Hence, they require you to obtain an auto insurance policy.

If you don’t have a valid driver’s license, you won’t be able to get an auto insurance policy. And, without an insurance policy, a lender will not approve your auto loan application.

2. registration

State transportation departments do not make a driver’s license mandatory for completing the car registration process. They accept any state-approved identity card. However, they require you to provide the details of your insurance policy before registering your car. And, getting a car insurance without a license is impossible.

3. Suspension due to DUI

If your license has been suspended or revoked due to multiple DUI (Driving under Influence) convictions, you will not be able to register your car. And, since it is illegal to drive a car without proper registration, the lender will not provide you with an auto loan.

There is an exception for each rule

Lenders will provide auto loans without a license in some exceptional cases such as:

1. When an unlicensed minor wishes to purchase a car so that he can have a car ready as soon as he obtains the license. In such a situation, a parent can get an auto loan by becoming a co-signer and get insurance with the help of his license.

2. When a spouse who does not have a driving license wishes to purchase a car for his partner, he can obtain approval of the car loan if he meets the lender’s requirements to become a co-signer.

Buying a car without a valid driving license is a complicated task. If you are buying a car for someone else, it is justifiable. Avoid it if you intend to use the car yourself.

Source by Kaitlin Miller

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