Do I Need a Driver’s Licence for a Car Loan?
Short Answer: No, you don’t. But, you need an official photo ID - like a passport.
Surprisingly, there are many reasons why people want car loans when they don’t have a driver’s licence. Here are a few:
- They might be getting their licence in the near future
- Buying a car for someone else
- Buying a car as a restoration project
- Using the vehicle on private property (eg: a farm)
Whatever the reason, it’s likely doable.
So, how can I get a car loan with no licence?
To apply for loans or other forms of credit, you’ll need an official photo ID. Often, borrowers simply use their driver’s licence as they have it handy and it’s government issued, so is accepted.
If you’re applying for a car loan and don’t have a driver’s licence, make sure you have another form of valid photo id.
For example, this could be:
- Proof of Age or Photo ID Card issued by the Australian Government
- Australian Passport
- Student ID Card
- Overseas Passport
In a nutshell, you’ll need a valid, government issued photo id.
What about insurance?
You can also insure your vehicle without a driver’s licence, although there are some variations between different states in Australia and with different insurance companies. You may also need to look into roadworthy certificates.
The process of getting a car on the road is often much easier with a driver’s licence – especially when registering the vehicle. Most states in Australia allow people to register a vehicle without a driver’s licence but, of course, they won’t be able to drive it on public roads.
You can’t drive on public roads without a valid driver’s licence.
Things to consider:
- Transport: If you finance a car without a licence, you may have to pay to transport the vehicle on a truck from the seller’s location to your home if it can’t be legally driven.
- Other drivers: If you’re buying the car for another driver, be sure that they are trustworthy and sensible. Having car finance in your name is a big responsibility and you won’t want to damage your credit history or financial record if issues arise further down the line.
- State laws & regulations: Australia’s states and territories have different laws when registering and transferring ownership of vehicles. For example, in some states, the minimum age you need to be to register a vehicle is 16, but the minimum age to apply for a car loan in 18. Check your state’s laws.
- Lenders: There are numerous lending institutions in Australia. They have varying rules and regulations so it’s important to do your homework.
The next step:
Positive Lending Solutions has access to a huge number of lenders. The team can give you the answers and point you in the right direction should you need them. Get a quick quote to find out what rates and repayments look like.
If you’re planning to get a car loan with no licence, although it’s doable, never drive on public roads without a licence.