Do You Need A License To Buy A Car?
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This question can be confusing because the law is set in stone; you need a driver’s license to drive a car on any public road - no wiggle room there. But purchasing a car is a little different. If you have the cash, you can legally purchase just about any legal thing you like within reason.
If you purchase a car without a driver’s license, the hoops you will have to jump will most likely come when you want to register and put insurance on the car. If you have the means to finance a vehicle, you will encounter even more roadblocks, but we’ll discuss that later.
Let’s first look at why you would want to buy a car without a license.
- You’re not of age to drive yet, but you’d like to purchase a car to work on while you wait for that golden opportunity, your driver’s license.
- You’re a business owner and need a fleet of vehicles to run your business properly.
- You don’t need to drive because you have a private driver that drives you around, but you purchase the car they drive.
- You cannot drive, but you have a caregiver that needs a particular accommodating vehicle to drive you around.
- You’re a car collector or a racecar driver.
- You’re buying a car for someone else as a gift.
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Getting a Car Registered
You can not get a car registered in your name at the Department of Motor Vehicles (DMV) Secartey Of State (SOS) if you don’t have a driver’s license. The only way to register your car with the state and obtain a license plate is if a licensed driver does it for you.
In this situation, consider choosing someone to help you with this responsibility because you will give up at least part of the ownership of that car. It’s recommended that if you go this route, you have complete trust in the person you register the car’s name to.
Things can get pretty sticky if there is a falling out of any kind in a friendship, relationship, acquittance, or even with a family member with their name on the title. And in some cases, the courts have to get involved.
It’s also important to note that if you don’t have your license, you still don’t have the legal right to drive any vehicle on a public road, registered or not.
Insuring a Car Without a Driver’s License
Here is another place you will have to jump through some hoops to get a car legal for road use. If you are going to be the policy owner, but you will have someone else drive the vehicle, then both parties will have to be present.
You will need your photo ID and probably your Social Security Number, and the driver will need their driver’s license. The driver will be listed as the primary driver for that car, and all policy premiums, both monthly or yearly, and all deductibles will be based on the driver’s driving record. As the policy owner, you will be responsible for keeping the policy current.
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Financing a Car Without a Driver’s License
Let’s face it, most of us don’t have the money to buy a car with cash, so we go to dealerships for finances. A loan through a dealership usually means taking it through their financial department and the lenders they deal with regularly. Unfortunately, this will bring you a whole new set of problems.
Here is where the most significant problem arises if you ask a salesperson if you need a car license. Their demeanor will go from happy, excited, and pushy to giving you the cold shoulder.
Dealerships will work with all kinds of car purchasing problems. From bad credit and low budgets to no credit, no driver’s license raises a salesperson’s red flags. They have to think about the issues listed above.
How is this person asking about getting the car registered and insured? Unless you know someone at the dealership who trusts you, understands the situation, and is willing to put his neck on the line for you, you’re probably going to get turned away.
Dealerships don’t like to give car loans to a person who doesn’t have a driver’s license because they know to make the vehicle legal to drive; the buyer will have to give up partial ownership of the car at least to get it registered.
You could apply for a third-party loan. Credit Unions are known to work with people in these situations because their loan stipulations are different. Although this would add just that many more hoops to jump through, it might be your only way.
Third-party financial loan institutions usually like the car insured before passing the loan through. Just another hoop you’ll have to work out with the dealership, the insurance company, and the finical institution.
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What About a Car That is Not Going to be Operated on Public Roads?
Let’s say you have a car collection that you want to add to, or you have a vehicle that you only plan on racing on non-public roads. Do you still have to have that vehicle registered? Yes.
According to CarsDirect.com, you can go to the DMV and ask for a non-operational vehicle registration. It’s usually relatively cheap and stays cheap to keep it updated. You have to have this because if the car is driven on a public road, the authorities know to whom they should give the hefty fat fine.
You also may want to put some insurance on your non-operation vehicles, like fire and theft. To do that, you will have to show proof of registration.
So the cut-and-dry answer to the question: Do you need a license to buy a car?
The answer is NO. But you want to be prepared for all the extra obstacles you will face when you go through registration and insurance. Make sure you trust whoever you designate as the insurance policy’s title owner and primary driver.
If you plan on financing a vehicle, ensure your credit score is up to snuff and be prepared to be turned down at a dealership.
Frequently Asked Questions
Q: Can you purchase a new or used car without a license?
Yes. While it may not make sense to buy a car without the ability to drive it, it’s not illegal to buy a vehicle even without a license. However, you’ll likely face some challenges when buying a car without a valid driver’s license. In most cases, you’ll need to be accompanied by a licensed, insured driver who will drive the car home.
Q: Can you insure a car without a license?
Yes, with some workarounds. To insure a car without a valid license, you’ll need to be with someone with a license. Some insurance companies will allow you to insure the vehicle by designating another person as the primary driver. The person without a license can be added as an excluded driver so that they can cover the insurance premiums. If the vehicle is a gift, the recipient must include it on their insurance policy.
Q: Can you register a car without a license?
For those without a license, you can add a licensed driver as a part-owner of the vehicle. This will depend on your state’s regulations on registrations. Typically, the name listed on the registration must match the name on the title.
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