Touring the streets by car is the dream of many. But, can the dream be fulfilled without a driving license? Can you buy a car without it?

The short answer is yes. It is not a crime to buy a car without a driver’s license. Also, it is legal for a car buyer to get a car loan without it. However, it is an entirely different question whether a lender will actually want to provide a car loan to said car buyer.

Why do lenders avoid making auto loans without a driver’s license?

Lenders know that you are more likely to keep paying for something if you use it. And you won’t pay back your loan if you can’t drive your car. Therefore, they refrain from giving car loans to car buyers without a driver’s license. There are several other reasons, such as:

1. Car insurance

Car insurance protects lenders in the event of an accident or theft. They know that if your car is totaled or you don’t have a car, you’re unlikely to make the payments. Therefore, they require you to obtain a car insurance policy.

If you don’t have a valid driver’s license, you won’t be able to get an auto insurance policy. And, without an insurance policy, a lender won’t approve your auto loan application.

two. Record

State departments of transportation do not require a driver’s license to complete the car registration process. They accept any state-approved identification card. However, they do require you to provide your insurance policy details before registering your car. And getting car insurance without a driver’s license is impossible.

3. DUI Suspension

If your license has been suspended or revoked due to multiple DUI (driving under the influence) convictions, you will not be able to register your car. And, since it is illegal to drive a car without proper registration, the lender will not provide you with an auto loan.

There is an exception to every rule

Lenders will provide auto loans without a license in some rare cases, such as:

1. When an unlicensed minor wants to buy a car to have it ready as soon as they get the license. In such a situation, a parent can get a car loan by becoming a co-signer and get insurance with the help of his license.

2. When a spouse who does not have a driver’s license wants to buy a car for their partner, they can get approved for the car loan if they meet the lender’s requirements to become a co-signer.

Buying a car without a valid driver’s license is a complicated task. If you are buying a car for someone else, it is justifiable. Avoid if you intend to use the car yourself.