Where can i buy a car without license

May 03, 2022

Whether or not you can buy a car when you don't have a driver’s license depends on a number of factors. For the most part, you shouldn’t run into any issues – unless you plan on financing it or registering the car. Even though you shouldn't run into any issues, every situation is unique, and it generally helps to have a valid driver's license if you plan on buying a vehicle.

Can You Finance a Car Without a Driver's License?

To complete the auto financing process, you need to title the vehicle and then get it registered. And this is where you might run into trouble if you don't have a valid driver's license. When it’s time to insure and register it, you’re going to get stuck. You need a valid driver’s license to get full coverage insurance for the car, and, in most states, you can’t register a vehicle or buy license plates without insurance.

If you decide to pay in cash, you could title the car in someone else’s name who does have a driver’s license and they can register it. Keep in mind, though, that the vehicle doesn’t legally belong to you at this point because your name isn’t on the title, and, until you get a driver’s license, you can’t legally drive it on public roads.

What if My License is Suspended?

A common question borrowers often ask is how having a suspended license affects buying a vehicle. It’s possible to finance a car with a suspended license, but it depends on the state you live in. If you do end up getting approved for financing with a suspended license, be aware that you can’t legally drive until your license is reinstated.

Waiting out the suspension isn’t easy, but it’s worthwhile in the end. Plus, this gives you ample time to check your credit reports and scores, do some vehicle research, plan a budget, and save up for a down payment. You can read up on budgeting tips for an auto loan here.

We find out if an unlicensed individual can purchase a vehicle and if you are able to purchase a vehicle that is not licensed for the road.

Published: 15 June 2022, 13:37

Maybe you are an individual under the age of 18 or maybe you have relied on public transport so long that you never obtained a driver's licence. Now a vehicle has come along and you don't want to give up the opportunity of owning that specific model. Are wondering if you can legally own a vehicle even though you are not a licensed driver? 

Unlicensed driver

In short, yes, you don’t need a valid driver’s licence to buy a new or used car from AutoTrader. It is not like buying a television set, where you must produce a licence to buy one. Not having a driver’s licence means you can own a car but not drive it on public roads yourself. You will need a licensed individual to drive the vehicle back to your home or arrange transport for the vehicle.

However, if you are planning on financing the vehicle, you will require a valid driver's licence. This is because lending institutions will require the vehicle to be insured for the entire financing period to ensure that they will be able to get their money back if anything happened to the vehicle. But if you are purchasing the vehicle with your personal savings, you will have no problem at the dealership. 

Unlicensed vehicle

Now let’s look at buying a car without a valid vehicle licence because the rules are quite different for these cases. Firstly, if the vehicle is not licensed you will need the seller to provide a very good reason for it not being licensed. You will also have to get as much ownership information from the seller as possible as sometimes a vehicle that is not licensed could be a stolen car or even built up from a severely crash-damaged car. There is also the likelihood that the vehicle comes from a neighbouring country and hasn't been registered locally.

Buying a car without a current licence can be problematic as it may have been deregistered, and it can be a lengthy and unpleasant process to get it back on the NATIS registry. For this, you will have to obtain a roadworthy certificate, a new MicroDot application and possibly a police clearance certificate before you can register it in your name.

You might be in for even more surprises as if the vehicle does not have a current licence disc, it could also mean you have to pay outstanding licence fees, and possibly you will have to pay a penalty for late licence payments as well. Sure you can try and request that the seller take responsibility, however, it could just end up stretching out the buying process even more. However, you could negotiate for a lower price to cover any of the outstanding licence fees and fines.

Your next question might be, can you drive your newly purchased vehicle home if it is unlicensed? The answer to that question is no. You cannot drive an unlicensed car on public roads. Just like if your tyre tread did not meet the minimum requirements or the vehicle might have a broken or faulty light, not having a valid licence disc on the vehicle deems it to be not roadworthy in the eyes of the law and as such could result in a hefty fine. Unless you are able to obtain the use of trade plates, you must move the car on a trailer.

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