Can You Buy a Car Without a License?

No state or federal laws mandate the requirement of a driver’s license for buying a new car. However, you need a driver’s license to complete the additional steps required to register, insure, and drive a car you’ve purchased. If you don’t have a driver’s license or it’s been suspended, you must have someone else drive the car or risk legal ramifications. 

The reason for your lack of a driver’s license doesn’t automatically put you at risk of legal action. Instead, here are a few reasons why you might want to purchase a car, even if you don’t have a license:

• The car is a gift: Many parents or family members give their children cars as a graduation or birthday present. If you plan on gifting the car and someone else will register it in their name, you don’t need a driver’s license to sign on the dotted line.
• Your caregiver will primarily drive: Buying a car for your primary caregiver to chauffeur you around doesn’t require a driver’s license. 
• Your employees will drive the car: As a business owner, you can purchase vehicles to integrate into your business without needing a driver’s license. 
• You want a car ready to drive: You might currently drive with a learner’s permit but wish to have a car you can register once you receive your license. This preemptive move doesn’t require a full-fledged driver’s license. 
• The car will live on your property only: Cars that you operate exclusively on your property and never touch pavement don’t need to be registered or insured and, therefore, don’t require a driver’s license to purchase. 
• The car will join others in your collection: If you plan on adding your latest acquisition to your car collection, you don’t need a driver’s license to purchase it.

Some cases include instances where you won’t drive the car and others where you will. If you get behind the wheel of any vehicle, whether you paid for it or not, you must have a valid driver’s license if it’s on public roads. 

Car insurance companies consider drivers without a license high risk, especially if that license is suspended or revoked. Insurance companies cover damages caused by accidents and rely on your driving record to gauge how risky your past driving behavior characterizes you as a policyholder. Higher risks can mean sky-high car insurance premiums or refusal of coverage altogether. 

If you have a suspended license and want to register a car, you can get “SR-22” insurance. Technically a financial statement of responsibility, SR-22 insurance represents an agreement between a car insurance company and the local Department of Motor Vehicles (DMV). Within this agreement, the car insurance company is legally responsible for proving that you have the state’s minimum required car insurance coverage. 

Alternatively, adding a driver to your car insurance policy can help you work around this snag. You can list another driver as the primary driver on your car insurance policy and yourself as an excluded driver. Again, car insurance companies need a driver to match with a driving record and risk assessment to calculate your monthly premium. Your presence as an excluded driver helps the insurance company mitigate any assessed risks. 

Buying a car without a license can be a complex process, so it’s best to devise a plan of action before you start car shopping. Ask yourself the following questions: 

• How will I transport the purchased car? 
• Who will register and insure the car? 
• What other forms of identification does the seller accept?

If you purchase a car from a private seller, they may or may not ask to see your driver’s license. However, without a license, you cannot drive the car off the seller’s property. You must arrange for the car to be towed or transported by a third party to its final destination. If the car you purchased is a collectible, you may seek third-party transportation anyway. 

When buying from a dealership, a strong credit score and good credit history can mitigate the risk you pose in purchasing a car without a license. Dealerships use a driver’s license to prevent identity fraud and register the car temporarily. The lack of a driver’s license can threaten the deal on the table, so it’s best to address your lack of a license before you get too far into negotiations. 

Special circumstances can make buying a car without a license complicated but not unachievable. If you are purchasing the car for your business, as a gift, for your caregiver to drive, or to have once you gain your driver’s license, the process just requires a few more steps and communication. However, it's in your best interest if you can wait to buy a car until you have your driver’s license. 

If you don’t yet have a license, you have several alternate transportation options to choose from, including: 

• FINN car subscriptions 
• Rideshare services
• Public transportation 
• Bicycle
• Walk 
• Carpool

FINN car subscriptions offer flexible terms and a wide selection of cars you can choose from. With one monthly payment to cover and plenty of trucks, electric cars, SUVs, and sedans to test-drive, it’s a one-of-a-kind experience that can prepare you for the car buying process better than any online research. Prequalify today to access your next driving experience.