Can i own a car without a drivers license

While it's an uncommon situation, some may want to buy a car without a license. You may wonder, 'Do you need a license to buy a car?' While you don't need one, you probably should have one anyway. There is no requirement to have a driver's license in order to buy a car. Driving the car that you bought requires a license, of course, but the act of purchasing can be done as long as you're willing to pay. Learn everything you need to know about buying a car without a driver's license.

Why Would You Need To Buy a Car Without a License?

Buying a car without a license might seem odd, but there are several situations in which it would be appropriate, according to Policy Genius, and they're all valid. The following are the most common reasons why someone without a driver's license would purchase a vehicle.

• Buying a vehicle as a gift: Just because you can't legally drive a vehicle doesn't mean that a family member or friend is also restricted. You can buy a car as a gift for someone who's a licensed driver. Just make sure the title is in that person's name.
• Buying a vehicle for your business: If you need fleet vehicles or simply a vehicle any of your employees will use for business-related purposes, you can buy one without a license.
• Buying a vehicle for a caregiver to use: Some disabled people may want to own a car for their caregiver to drive them around.
• Buying a vehicle for a minor who's a licensed driver: Teenagers can't legally finance a vehicle in most circumstances, but you can still purchase a vehicle for your teen, provided they have a license, even if you don't have one.
• Buying a car for a collection: Collectors often purchase cars to add to their collection, not to drive, and you don't need a license to purchase a vehicle as a collector's item.
• Buying a car for a driver to operate: If you're in a position in which you have a private driver or chauffeur, you can buy a car for them to drive as long as they have a license.

Dealing With Insurance

One of the greatest obstacles to buying a car and retaining ownership without having a driver's license is obtaining insurance. Most states require all drivers to have some kind of insurance, and insurance is harder to obtain for those without a driver's license. Insurance companies typically require you to list your driver's license number on the application so that they can check your driving history.

Fortunately, some insurers are relatively understanding when it comes to insuring a vehicle you've purchased but can't drive according to LendEDU. All you need is the necessary information about the licensed driver who will be the primary driver of the vehicle. This effectively replaces you on the policy as the primary driver. The new primary driver's information is used to determine policy details and costs—even if you're the one paying the premiums. If that is the case, you will be listed on the policy as an excluded driver, just to include you officially in the process as a non-driver not covered by the policy.

Of course, this is only necessary if you're looking to retain ownership of the vehicle, according to Credit Donkey. Designating your spouse, family member, or friend as the primary driver may have different requirements, but if you're buying the car as a gift, it's up to the recipient to get their own insurance policy if you're willing to relinquish ownership, as explained by Road Loans.

Registration Frustration

Vehicles must be registered through a state's motor vehicle department before they can be driven on public roads. The registration information must match that of the owner of the car's title, which would be you, should you elect to retain ownership, according to Student Debt Relief. This is often one of the biggest hurdles since a valid license is required to register a vehicle in your name. Strictly speaking, this means that, without a license, you cannot buy a car that can be driven legally. There's no law against the purchase, but the legal requirements for registration bar those without driver's licenses from registering their vehicles.

The way around this obstacle is to name a licensed driver as the titleholder of the vehicle. The downside is that you give up at least partial ownership of the vehicle. Just make sure you co-own the vehicle with someone you trust, such as a family member.

Barriers to Financing

Very rarely is one able to purchase a car outright. Auto financing is virtually an essential part of the car buying process, yet financing can be tricky if you don't have a license. Of course, to be fair, financing can be tricky with a license, as well. To start the financing process, you'll have to provide some form of photo ID to prove that you're not taking out a loan in someone else's name. This is easy enough without a license, but the process gets more complicated from there.

Going through a dealership's financial department typically involves taking out a loan through its team. While many dealerships are happy to work with smaller budgets and lower credit scores to some extent, they'll often hesitate to give loans to unlicensed drivers. This is because they know you'll only have, at best, part ownership of any new vehicle due to the registration requirements. You can always apply for a loan from a third-party source that may not have the same criteria, but they typically require that you have insurance coverage first, and that, as previously mentioned, comes with its own obstacles.

Put simply, you can buy a car without a license fairly easily, but getting financing and completing registration will be tough without one. The entire process is purposely designed to favor licensed drivers, but there are still ways to overcome this. So do you need a license to buy a car? No, but you certainly need a license for just about every other aspect of car ownership.

Information and research in this article verified by ASE-certified Master Technician Duane Sayaloune of YourMechanic.com. For any feedback or correction requests please contact us at .

Sources:

https://www.policygenius.com/blog/can-you-buy-a-car-without-a-license/

https://lendedu.com/blog/can-you-buy-a-car-without-a-license/

https://www.caranddriver.com/shopping-advice/a25629230/how-to-buy-a-car/

https://www.caranddriver.com/news/a29831248/americans-not-researching-auto-loans/

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