Can You Finance a Car Without a License?

You can finance a car without a driver's license. There’s no law saying you can’t. A dealer won’t let you drive a car off the lot without a driver’s license, so you’ll need to have a legitimate reason for purchasing a car without one. This begs the question of how necessary a driver’s license is in other car-related scenarios.

All states require that a car be registered with its department of motor vehicles or transportation agency. The requirements to register a car differ by state. However, you can register a car without a driver’s license if it's for a family member, caretaker, driver or your business. You will need to provide some other type of valid identification when you register.

Read More: Can You Rent a Car With a Learners Permit?

The laws may differ if you are an out-of-state driver attempting to register your car in a new state. In states such as North Carolina, you may have to furnish your valid out-of-state driver’s license. The laws may also differ if you are a minor attempting to register a car. For example, in states such as California, it is illegal for a minor without a valid driver’s license to buy or accept a car that requires registration.

Other documents that may be required when registering a car include proof of insurance, title to the car and an emissions test document. Be sure to check with your state to determine the requirements for registering a car, whether purchased from a dealer or through a private transaction.

All states require cars to display valid license plates. Getting a license plate for your car requires that you register your car. That means you can get a license plate for your car without a driver’s license in those states where it is permitted.

Similar to financing a car from a dealer, you can obtain a car loan without a driver’s license. It is not illegal for a bank, credit union or other private lender to give you a car loan if you don’t have a driver’s license. Again, just be sure that, when you go to purchase your car, you have a licensed driver with you to actually drive the vehicle off the lot.

Most insurance companies require you to have a valid driver’s license to get car insurance for your vehicle. They need your driver’s license number to check your driving history to determine your insurance rates. However, you can insure a car without a driver’s license through some insurance companies if you can prove certain things.

To insure a car without a driver’s license, you must list on the insurance policy another person who is licensed as the primary driver. The primary driver doesn’t have to be the policyholder, nor does she have to pay premiums. She just needs to be the person who will be driving the car. You will also have to name yourself as an excluded driver, meaning you won’t be driving the car, nor will you be covered by insurance if you do and get into a car accident.

Much like financing or taking a loan out to purchase a car, you do not need a driver’s license to buy a car with cash. Again, keep in mind that you won’t actually be able to drive the car without a valid driver’s license. Doing so can lead to a whole host of trouble with the law that can end up being much more expensive than the price of your car.

Generally, it is easier in most car-related transactions to have a valid driver’s license. When possible, obtain one before purchasing, registering or insuring a car to make the transactions less complicated. If you cannot get a license or are not able to drive, be sure to know your state’s requirements so that you have the needed information from the start.