Don’t Miss These Facts
- There is no law in the United States that requires you to have a driver’s license in order to purchase a car
- You may need to purchase a car without a license for various reasons like purchasing the car as a gift or buying the car for your business
- When buying a car without a license, you will face additional obstacles such as financing, registration, and insurance for the vehicle
Can you buy a car without a license? Buying a car is an exciting step forward. But for a smooth process, you need a driver’s license. However, it is possible to buy a car without a license. This process will come with roadblocks along the way, but there are ways around them.
Continue reading to find out which obstacles you may face when purchasing a car without a license and how to overcome them.
Do you need a driver’s license to buy a car?
The short answer is, no, you don’t need a driver’s license to buy a car. There is no law in the United States that requires you to have a driver’s license in order to purchase a car. However, there are parts of the process of the purchase that may be difficult for someone who does not have a license.
Why would you need a vehicle without a driver’s license?
Without a driver’s license, you can’t legally drive a car, so why would you want to purchase a car? There are a number of possible reasons for this, including:
- Buying a car as a gift. You’re purchasing the vehicle as a present for someone else.
- Buying a car for a driver to operate. If you hire or already have a chauffeur and they have a license, you can buy a car for them to take you around.
- Buying a car for a minor who’s a licensed driver. You can buy a car for a teen who won’t be able to acquire a loan for it lawfully.
- Buying a car for a caregiver to use. Disabled people may require transportation for their caregivers.
- Buying a car for a collection. You can buy a car if you want to add it to your collection of cars, but won’t be driving it.
- Buying a car for your business. You can buy a car if you operate a company and require a car for your staff to use.
Whatever your purpose for buying a car, it’s critical to be aware of the various obstacles you may face.
Obstacles of Buying a Car Without a License
Buying a car without a license, for whatever reason, can be more difficult than doing it with a license. The following are the most common struggles you’ll face while buying a vehicle without a license.
Auto Registration
The registration process is the most difficult part of buying a car without a license.
A car must have a DMV vehicle registration to its legal owner, whose name is on the title, in order to be driven on public roads. This is your name if you plan to keep full ownership of the automobile.
The catch is you cannot register a car without a license, which can prevent you from buying it for yourself.
This is only an issue if you want to keep complete ownership of the vehicle. It does not apply if:
- You’re purchasing the vehicle as a present. As the registered owner, the recipient must have a valid driver’s license and proof of insurance.
- You’re purchasing a vehicle for your company. The registered owner will be your business entity. All drivers must have a valid driver’s license and be insured.
- You’re purchasing the car as a collectible. If a collectible car is never driven on public roads, it may not require registration.
Financing Challenges
As previously stated, car dealerships do not necessarily demand a driver’s license to purchase a vehicle. They’ll require photo identification, although it can be in a variety of formats.
However, you may be unable to finance a vehicle with a dealership if you do not have a driver’s license.
This is because a valid driver’s license demonstrates that you have the legal right to own the vehicle. At the time of purchase, a car dealership will normally assist a buyer with the registration procedure so that they can legally drive their new automobile off the lot. A valid driver’s license is also required to register the vehicle in your name.
Without a driver’s license, you may be unable to obtain an auto loan from a dealership because it demonstrates that you are unable to fully own a new vehicle.
Also, a driver’s license verifies that you are who you claim to be. To buy a car at a dealership, you must confirm your identity, especially if you wish to finance the car. Dealerships and lenders want to make sure you aren’t borrowing money in the name of someone else.
When the dealership checks your financing eligibility and qualification, a valid license also assists them in locating a suitable credit report. If you’re purchasing a vehicle for your business and your company has a strong credit rating, financing will be easier to come by. You could also apply for financing through a third-party auto-loan provider. Before you take out a loan, lenders will ask that you have the right insurance coverage for your car.
Dealing With Insurance
Before you can get financing and your car can legally go on the road, you’ll need to get the appropriate insurance coverage for it.
The difficulty is most insurance companies ask applicants to fill out an application that includes their name and license number. The insurance company can use this information to evaluate your driving record and establish your eligibility.
It’s possible that you’ll be added to the insurance policy as an “excluded driver,” which means you won’t be covered if you drive the vehicle. If you get your driver’s license later and wish to drive the car, you must first tell the insurance provider and make the necessary adjustments to your coverage.
Test Driving
Going for a test drive is an important element of the car-buying process, whether it’s a new or used car. It helps you to ensure that the vehicle is in good working order and that it meets your needs before you take it home. You may notice little characteristics during a test drive that you would overlook while sitting in the parking lot. Make sure to bring a licensed driver with you when searching for a new car.
How to Buy a Car Without a 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, name 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.
- Consult an insurance agent who can assist you in locating an insurer willing to work with unlicensed proprietors.
Can I buy a car without a license?
In short — yes, you can purchase a car without a license. There are various reasons as to why you would need to do this. Some include buying it as a collector’s item, for your business, or as a gift. Regardless of the reason, buying a car without a license will be more difficult than buying a car as a licensed driver. Some obstacles you may face are vehicle financing, auto registration, and car insurance. But, there are different solutions and ways around these obstacles.
