How to Purchase a Car Without a Driver’s License or Social Security Number
Posted Monday, Feb 27, 2023
People often ask whether they can buy a car without a driver’s license or social security number. The simple answer is that it is possible to buy a car without a driver’s license, but purchasing an automobile without a social security number is a different ballgame altogether. Let’s discuss both scenarios.
Can You Purchase a Vehicle Without a License?
A car can be purchased without a driver's license.. You only need a valid government-issued ID and the money to purchase the car.
However, you won’t be legally allowed to drive if you lack a driver’s license and insurance. Here are a few situations where buying a car without a driver’s license would be worth it.
- You are a business owner that needs a car for your employees.
- You have a hired driver.
- You are learning to drive.
- You are giving the car to someone else.
Things to Consider Before Buying a Car Without a License:
Registration -
Each state has vehicle registration requirements. If you approach a used car dealership to purchase a car, they will submit registration requirements and a title to the Department of Motor Vehicles.
Most states require buyers to provide a photo ID and proof of insurance but not a license. The license is needed only when you plan on driving your car. Remember, registrations vary from state to state.
Therefore, discuss your registration process with your local Department of Motor Vehicles before you decide to buy a car.
Insurance -
Whether you or your dealer registers your car, you must get it insured. It is worth noting that getting a car insured without a license can be difficult and costly.
A buyer without a driver’s license is risky to the insurers. However, you can team up with an independent agency that helps you compare quotes offered by different car insurance companies.
The policy you will need is generally known as a non-owner policy. The good news is most big insurance companies offer this type of insurance.
However, you will have to provide the diver’s license details of the person operating your car.
Without a Social Security Number, Can You Purchase a Car?
Buying a car without a social security number is possible, but it is better to have one since most auto loan lenders require one.
Sometimes, you can get a car with an individual tax identification number (ITIN), but this is rare. Buying a car is about letting your lender look closer at your credit score.
In doing so, they will pull your file from either of the three credit bureaus-Equifax, Experian, and TransUnion.
However, this process needs your SSN as it is your identifier in the US. The social security number was originally introduced in 1935 to track citizens.
With time, the social security number has become the de facto national identification number used for taxation and similar purposes.
However, if you manage to establish a credit record with your ITIN, the lender will be able to gather enough credit information to judge your creditworthiness.
ITIN is issued to people who need taxpayer identification but aren’t eligible to have a social security number. These include non-resident and resident aliens, dependents, and spouses.
Proving Credit Worthiness with Poor Credit
By now, you have understood that buying a car without a driver’s license or a social security number is possible, but having a decent credit score is important.
However, should bad credit keep you from purchasing a car? Not at all. What you need is the right kind of lender. Subprime lenders work primarily with people with poor credit. These lenders look at things beyond your credit score.
Here are a few things you need to prove when working with a subprime lender.
Ability to Handle Loans -
Lenders look at your employment and income status to ensure you can repay the loaned amount. Normally, the minimum income required is between $1500 and $2500 before taxes.
Stability -
Lenders would like to know if they can contact you at the same address you have provided. You can prove this with a utility bill or a bank statement that has the address that is present on your financing application.
Willingness to Take on a Credit -
The best way to express your commitment to making payments on time is by providing your lender with a down payment. If you have a poor credit score, you will have to pay a down payment of 10% of your car’s purchase price.
When seeking an auto loan, stay away from buy-here-pay-here dealerships. These dealerships work closely with people with poor credit. To cover the risk, they charge higher interest rates. They also have several hidden charges that significantly raise the vehicle cost.
Final Word
Some people can lack a driver’s license or a social security number. However, it shouldn’t keep them from buying a vehicle.
If you don’t want these obstacles to get in the way, your best bet is to start working on your credit score today, and there are several ways to do so.
Make credit card payments on time, get a co-signer, try not to accumulate only a little credit, make cash payments, and try to shop around for better rates. Doing so will drive you closer to owning a vehicle more quickly.
