It is possible to buy a car without a license. While a valid driver's license (or learners permit) is required to drive a car, there is no law in any state that says you need a license just to own a vehicle. Even though purchasing a vehicle without a valid driver’s license may seem like a strange notion, there are reasons aplenty that you, as a non-licensed driver, may want to own a car.
Although car ownership is possible for individuals without driver’s licenses, that does not mean that there will be no drama involved during the process. If you plan on buying a car and you do not have a license, be prepared to jump through some minor hoops. Don't worry, though, you should be able to navigate the process with relative ease as long as you have valid, non-driver photo identification, which is available from the Department of Motor Vehicles or other similar agencies in every state.
Why Buy a Car Without a License to Drive It?
There are many reasons why a person may want to own a vehicle, even if they cannot drive it. While it is uncommon for unlicensed drivers to purchase vehicles, there are several reasons that you might find yourself needing to purchase a vehicle without first obtaining a license. Let us run through some examples of circumstances that might result in non-drivers buying a car.
The car purchase is a gift. Although you cannot drive legally, you may want to gift a friend or family member with a new or used car. The title needs to go into the other person’s name, of course, which is a fairly straightforward process.
It is a purchase for use by your business. If your business needs a vehicle, then you can still purchase it regardless of your unlicensed status. You can purchase one or more vehicles (or even a fleet, if needed) without having your own driver’s license as long as your employees are licensed to drive.
A caregiver will be driving the car. If you are disabled, you may want to purchase a car for your caregiver to drive, for whatever reason (such as taking you places or getting back and forth to your home).
The purchase is for your minor child. Because teenagers can be licensed to drive but cannot obtain financing for a vehicle, in most cases, you may need to finance a car for your teen to drive.
You are buying it to add to your car collection. Buying a car for your collection of antique or other cars does not require a license.
You have a driver on staff. If you hire a chauffeur or private driver to take you where you want to go, you might want to purchase a car just for that purpose.
Can You Register a Car Without a License?
The major challenge associated with buying a car without a license is registering it. The vehicle can only be driven on public roads if it is registered in the owner's name, meaning the name listed on the title. If the goal is to retain full ownership of the vehicle, you will need a valid driver's license for the vehicle to be street legal, even if you will not be driving it. There are some workarounds to registering your car in your name, however. It is important to remember that most car dealerships handle the registration of the car, which can make things a lot easier on your end.
You have a few options to consider as an unlicensed owner of a vehicle. If you are buying a new car for business purposes, for example, you can register it under your business entity's name, rather than your own. Anyone who drives the vehicle will need to be licensed and insured, but you (your company) will still be the sole owner.
If you are buying the vehicle for someone else, as a gift for example, the driver needs to register the vehicle in their name. However, that means that they technically have legal ownership of the vehicle, even though you paid for it. If you take this approach, you must trust the driver, and you may want to consult a lawyer about a contract to protect you in case something goes awry. Another option is to place a lien on the car so that it cannot be sold without meeting your requirements and seeking your permission. The guidelines for placing a lien on a vehicle vary from state to state.
Finally, if you are buying a collectible car, you may not need to register it at all. States have different restrictions depending on whether the vehicle is classified as a historic or classic car. Check your local guidelines to see if your collectible car meets your state's criteria. Still, if you plan to allow the car to be driven on the roadway at any point, it will require registration and insurance in order to be street legal.
The bottom line about registering a vehicle without a driver’s license boils down to the fact that the MVA in every state requires that vehicles are registered before they hit the road. Keep in mind that most states want registration to be obtained within a month of the vehicle’s acquisition.
To register a car in most states, you need to have not only the vehicle’s title, but also your proof of car insurance, and your driver’s license or ID. Once you produce everything the state needs to make your registration legal, you will need to simply pay the registration fee, which varies greatly between states, and affix your new license plates to your vehicle. This shows that the vehicle has been registered appropriately with the Department for Motor Vehicles.
It is important to note that you may not be required to submit proof of insurance for your car purchase immediately. It depends on your state. In California, for example, buyers are given a full 30 days following the registration of their vehicles to give the DMV valid proof of insurance. Owners who fail to produce insurance proof within the allotted time are penalized with suspended registrations and must pay reinstatement costs before they can drive their vehicles again.
You Still Need a Valid Photo ID
Although a driver's license is not necessary to own a vehicle, government-issued photo identification is still required to get a loan, registration, and auto insurance. If you do not currently possess a valid photo identification card, you will need to go to the DMV and obtain one. The requirements to get a non-drivers ID do vary from state to state, but in most cases, you need a social security card, proof of residency, and proof of identification. Contact your local Department of Motor Vehicles for information on your state's requirements and arm yourself with your personal ID prior to applying for a loan or automotive insurance.
Getting Car Insurance Without a License
To register your vehicle as an excluded driver, you will need the bill of sale and auto insurance. Here's where things can get a little bit tricky, in some cases. Some insurance agencies will not provide a policy if you're not the primary driver, so you will need to call around and discover your options.
The reason why getting coverage without a license is hard is because there are many factors that insurance companies examine to determine your rate. Since you will not be the primary driver, an insurance company will need to base the rate on driver-specific information. That includes where they will be driving, their driving record, how many miles the vehicle will be driven annually, and their credit score.
If the licensed driver or primary driver has a bad driving history, plan on paying significantly more for an insurance policy than you would for yourself – that is if the insurance agency is willing to provide coverage at all. Before agreeing to a plan, be confident in the driver getting the insurance. While accidents do happen, you do not want to end up paying high premiums because a friend or family member isn't a responsible driver.
Finding an Auto Loan Without a License
A lender will not give you a car loan unless you are able to provide proof of insurance on the vehicle you are purchasing. Once you have coverage, the next step is to find a loan, assuming you will not be paying with cash or credit. Some lenders will not provide a loan without a valid driver's license. Others may consider it, but only if you prove that you're going to be able to pay for the vehicle. The reasoning behind this is that an unlicensed driver could get arrested, and then will not be able to make payments. That is why you need to prove that you will not be driving the vehicle, perhaps explaining to the lender who will be driving the vehicle and under what circumstances.
If you are looking for the best rate, a big bank may not be the best choice. They tend to have stricter rules, and if you get a loan, it may not be an ideal rate. If you are buying a used car, many banks refuse financing altogether. Instead, you may want to find a credit union in your area. Credit unions tend to be more willing to work with people in unique situations. You will likely need to bring along the primary driver so you can make your case.
If you are not able to obtain a fair loan through a bank or credit union, look into other routes to get a personal loan. Sometimes, a credit card with a low introductory interest rate may cover a sizeable portion of the vehicle's price, especially if the seller is willing to cover the transaction fees. Getting a car without a license is possible, but as you can see, you might end up paying more if not paying with cash.
Shopping for a Car Without a License
Another difficulty associated with car buying without a license is that the dealership (or private sellers, for that matter) won't allow you to test drive a new vehicle or used car without a valid license. Naturally, this makes it challenging for a non-driving car buyer to make an informed purchase. The best approach is to bring the primary driver with you and allow them to test drive the vehicle. While you will not be able to feel what it is like to drive the vehicle, the driver should be able to help you determine if the car is a good buy.
If you do not have a driver — maybe you are buying a collectible car — you can bring someone you know with a license to test drive it for you. A salesperson or the seller may also be willing to take the car out with you as a passenger. Just pay close attention to any bumps, noises, or other occurrences that do not seem right.
You May Want to Get a License Anyways
If you can, you may want to consider getting a driver's license, even if your foot is never going to touch the gas pedal. Of course, that is not always possible, but if it is, you can save a lot of time and effort. A lack of a driver's license limits your options when it comes to finding car insurance coverage, getting a loan, registering the vehicle, and shopping for a vehicle. And it may also cost you more by way of increased insurance rates. It is possible to overcome these hurdles, but it may take more research and time.
If you plan on getting a license in the future, it is easier to wait until you have it before buying a vehicle. That way, you do not need to bother transferring ownership and adjusting your insurance policy. And you may also be able to get an auto loan with better terms.
As you can see, the entire process of buying a car can be a bit frustrating if you are not licensed to drive. However, with enough determination and know-how, you can overcome the existing hurdles and buy a car regardless of whether or not you will ever slide behind the wheel.