Can You Buy A Car With A Permit?
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Everyone’s driving journey is different, and you may find yourself in a position where you don’t yet have an actual driver’s license, but you’d like to purchase a car. If so, don’t fret! As long as you have a decent credit score or some other means to buy a car, you can buy a car with a permit. There are certainly other things you can and can’t do with your car until you have a driver’s license, so we’ll teach you all about the ins and outs of car shopping with a permit!
Quick Answer: Yes, You Can Buy a Car, but You Can’t Drive It Yet
You can indeed purchase a car if you don’t have your driver’s license yet, but you won’t be able to get out on the road and actually drive it until you do have one. Your credit score will actually be a much bigger decider of whether or not you can buy a car. If you have a good credit score, you have nothing to worry about, but if it’s bad, your lack of a driver’s license might make things a bit trickier. Either way, it’s certainly possible to buy a car with a permit.
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How to Buy a Car with a Permit
Whereas it may seem like whether or not you have a driver’s license is the most important factor in buying a car, your credit score is really the important thing. You can buy a car with a permit for sure, but it’ll be much easier if you have a good credit score. How it works is essentially the dealership will check your credit score to see if they believe you’re likely to pay for the car consistently and on time; however you choose to pay for it.
If your score is high, they trust you, and it doesn’t matter if you have a license or a permit. However, if you have a bad credit score, then the process becomes more difficult. You’ll need to go through a subprime lender for an auto loan for people with bad credit, and they can be very particular about the kinds of identification they accept.
While some lenders might be satisfied with a state ID, a large number of them only want to see a driver’s license, which means you might not be able to get the loan yourself. If you have bad credit but have enough cash on hand to buy the car outright, this is irrelevant, but if you need money and have bad credit, you’ll likely need that driver’s license.
Now let’s say you have a great credit score but will be needing a subprime loan to finance your car purchase. You’re off to a good start, but you’re not done yet. Since subprime lenders want to be as confident as possible that the people they lend money to will be able to pay it back, they’ll want to take a look at some other aspects of your finances before approving the loan completely. These may include:
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- Proof of income. This will be a statement proving your current employment and monthly income. According to CarsDirect, many subprime lenders require that you make a minimum of $1,500 to $2,000 before taxes from one particular employer every month for loan approval, so if you don’t have that, you might not get approved. Consistent work history is also a plus because it shows that you have been making money steadily for some time and will likely continue to do so.
- A cosigner. You may or may not be required to have a person you trust cosign the loan with you if you have a bad credit history, but even if you aren’t, it’s always a good idea. You can sometimes enjoy increased savings on your loan payments with a cosigner.
- Residency statement. Subprime lenders want proof of your housing, which can usually be in the form of a bill or any official document that lists your address along with your name on it.
- Outstanding debts. If you already owe money somewhere else, the lenders will want to know and look through a record of your current debts. They don’t want to lend money to someone who already owes a lot of money elsewhere and may not be able to pay it back. Make sure to get your debts in order and pay off whatever you can before you apply for a loan, as that will increase your odds of success.
- Down payment. Lenders will pretty much always want a down payment, so be sure to have enough money available already to pay for some of the car. It usually doesn’t need to be too big, but some money will be needed right off the bat.
Can You Register a Car with a Permit?
In order for your new car to be legally compliant and be driven on the road with no worries, it must be registered with the state. Unfortunately, you definitely need a driver’s license for this, and there’s no way to get around it. Permits are not acceptable for car registration. Once you do have a driver’s license, though, it’s pretty easy to get your car registered.
All you have to do is go to your local DMV with the necessary paperwork (license, the car’s title, and proof of insurance), pay the required fees, and fill out the paperwork that they provide you. When you’re finished there, you’re all set! Your car is legally registered, and you can drive as you please!
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Can You Get Car Insurance with a Permit?
Getting car insurance with a permit is certainly a possibility, unlike registering your car, but it is a little complicated. Although you don’t have a driver’s license yet, someone with a driver’s license will need to help you sign up for insurance.
According to Car and Driver, insurance companies don’t like insuring a car without a person they can point to as the primary driver, and this person must already be legally able to drive. It’s most common to make your primary driver a person that you’re close with and even live with if possible.
If you don’t live with them, the car will most likely have to be titled in their name, with them officially being designated as the owner of the car. After you have insurance set up, you can be added to the policy when you have your own driver’s license.
Navigating the Car Buying Process with a Permit
If you’re ready to start shopping for your car with a permit, having a game plan is essential. Begin by researching different makes and models that fit your budget and lifestyle. Read reviews from reputable sources and ask friends or family for recommendations. Once you have a short list of vehicles you’re interested in, it’s time to start visiting dealerships.
When you arrive at the dealership, be upfront about your situation. Explain that you have a permit and are interested in purchasing a car but will need a licensed driver to assist you with the test drive. Most dealerships are accustomed to working with customers in this situation and will happily accommodate you.
Pay attention to how the car handles and feels during the test drive. Even if you’re not behind the wheel, you can still observe important factors like visibility, comfort, and ease of use. Take notes and ask plenty of questions. If possible, bring along a trusted friend or family member who can offer their opinion and help you make an informed decision.
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