Can You Lease A Car Without A License? What To Know
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A driver’s license is required for plenty of occupations and activities, especially those involving vehicles in the U.S. For passenger cars, motorcycles, and specialty equipment vehicles, having a license is required. But can you lease a car without a license? What to know about those unique situations and what you can do about them.
Having a driver’s license isn’t used solely for driving. Many jobs and occupations require a license in order to get formal certifications to perform day-to-day tasks like public service workers. A driver’s license essentially acts as an agreement for certain activities, like leasing a car.
Can You Lease a Car Without a License from a Dealership?
Car dealerships and ownership groups effectively let customers drive their vehicles for a period of time with little down payment or trade-in vehicle. Leasing regulations are typically more strict than buying a car for cash or with a trade-in vehicle because of its higher risk. Leasing banks demand applicants to have excellent credit and minimal pricing flexibility. A lease application is usually either accepted or refused, but a financed purchase allows the lender to alter the interest rate based on your credit score.
You’ll have a difficult time finding an authorized dealership that will fully let someone lease a car without a driver’s license since it’s a requirement when leaving the lot of the dealer. Dealerships do everything in their power to protect their inventory, and having a driver’s license is the bare minimum that dealerships will require of their customers. It’s typically the first step in a lengthy qualification and documentation process on the part of the dealership.
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How Can you Lease a Car Without a License?
Since you won’t really be able to lease a car without a license from a dealership, what are the alternatives, and what other options do you have?
Using a Learner’s Permit
It’s not a guaranteed solution, but you may be able to lease a vehicle with a learner’s permit from the dealership, but the issue will come from having it registered with an insurance company. Nearly every dealership in America will require their vehicles to be insured by those leasing, and insurance companies typically won’t register a specific vehicle to a driver without having an active driver’s license.
A learner’s permit is basically a driver’s license with additional restrictions. Most states require a certain number of supervised driving hours and passing a driver’s exam before issuing the official state driver’s license. You can drive a vehicle with the permit but can’t put it under the person’s name who has the permit. It’s unlikely that someone leasing the vehicle would use it strictly for learning purposes, and dealerships will stay away from this.
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Leasing the Car in Someone Else’s Name
For many family’s, spouses and children often switch which vehicles they’re driving for a variety of reasons. So while one parent might be the one to lease in their name specifically, most dealerships list the spouse and immediate family members as authorized drivers. It once again comes down to insurance and being a legal driver, and you’ll need a valid license (or learner’s permit) to drive and operate a vehicle.
What Are the Risks of Leasing Without a License?
From a legal perspective, both the business and individuals that are leasing in their name are responsible for the care of the vehicle. If someone is leasing a car for someone else who won’t be a covered driver, they risk financial and legal repercussions if there’s an accident or damage to the vehicle.
When it comes to registering a vehicle, there are really no exceptions to not having a valid driver’s license. You can get insurance, but you won’t be able to officially register with the DMV without the license. When you lease or finance a car, the main driver’s name is on the lease with the dealership, and when you register it under your name, you’re supposed to be the only driver. You can’t lawfully operate a car without registration and a license plate, which both require a driver’s license.
Some states allow you to renew an expired driver’s license by passing a simple written test and clearing a simple driving record check. You can sometimes buy a vehicle and then obtain your license, but the process doesn’t usually translate for a leasing process. You can bring the title and proof of insurance to your local Secretary of State or DMV and renew your license.
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Co-Signer
If you planned on using a cosigner because of an issue with credit, you might be able to put the leased car in their name and be added as an authorized driver when you get your new driver’s license. They will likely need solid employment, good credit and driving history, and proof of their own driver’s license for this option.
Using a Private Lender or Leaser
This is one of the more realistic options if you’re strictly looking to lease a vehicle without a valid existing driver’s license, but it’s ultimately going to come down to the lender. The answer to the question: “can you lease a car without a license?” is a complicated answer, but it is possible.
Check with your local DMV to see if your license can be renewed after having it lost or if you accidentally let it lapse. You’ll want to check with multiple car dealerships to see if they have any options in place for leasing vehicles to drivers that don’t have active licenses, as it will most likely come down to an individual decision depending on the area and dealer.
Ultimately, you’ll most likely need a driver’s license to get vehicle insurance, which most dealers will require regardless to lease a car. Like any type of vehicle purchase or lease, it’s important to do your research beforehand to make sure you’re getting a good deal and a vehicle and dealership that you trust. It may require some additional time and effort, but it’s possible to find a dealership willing to work with you if you don’t have a driver’s license.
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