Can You Get a Car Loan with No License?

Getting a car loan without a drivers license is difficult. While a valid license is not required per se, it is one of the documents that you will be asked to produce during the application process.

The Risks of Lending to an Unlicensed Individual

Many lenders will not approve a car loan unless someone in the household has a valid license. After all, if you are unlicensed and operate the vehicle, you risk having it impounded by the police. The police will not release the vehicle to an unlicensed person. That means the impound fees will pile up. The mounting fees may lead you to stop repaying the loan, leaving the lender with an impounded asset to repossess.

Having a Licensed Cosigner and Insurance

So, many lenders will require an unlicensed driver to have a cosigner who does have a valid driver’s license. Even with a cosigner, lenders are going to want to see that you have proof of insurance. You may want to find an insurance company that is willing to cover an unlicensed driver before you bother applying for a loan.

You would probably be better off going through whatever procedures are necessary to get a driver’s license or have your current one reinstated before getting a loan. If you owe fees or court fines, it may be difficult to pay those while making a monthly payment for a car loan.