July 14, 2022
You asked, we answered.
Do I Need a Driver’s Licence to Get a Car Loan?
In short: No, typically you don’t need a driver’s licence to get a car loan, but you need an official photo ID – like a passport or Proof of Age card.
But there are some things to consider
According to the experts at OnlineLoans.com.au, wanting a car loan without having a locence does happen and more often that you might think.
With their years of experience, we asked the team to provide some insights.
Why might someone want a car loan without a drivers licence?
This can be for a variety of reasons. For example, someone 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, finance can likely be arranged.
How can I get a car loan with no licence?
When applying for any type of loan, you’ll need a government issued photo ID. Often, borrowers simply use their driver’s licence as they have it handy and it’s government issued.
This means, without a driver’s licence, you might need to think outside the box and get 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
- Firearms licence (official and with a photo)
- Motorbike licence
- Heavy vehicle licence
- Student ID Card (for initial submission only, not loan settlement)
- Overseas Passport (but you’ll need a valid visa too)
In a nutshell, you’ll need a valid, government issued photo ID so most people use a driver’s licence to get a car loan.
Things to consider
If you don’t have a driver’s licence and therefore, can’t legally drive on public roads, you’ll want to get your ducks lined up.
Transport
Don’t forget that 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. This will add costs, especially if you plan on transporting the car long distances or interstate. You might still need to get the car from a depot in your area to your home too.
State laws & regulations
You’ll need to be over 18 years of age to apply for finance in Australia, but, in most states and territories, over 16 to transfer a vehicle into your name. This might cause a few issues so be sure to check on your local government’s website.
Other drivers
If you’re buying a car for another driver, it’s super important to 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 have any problems if they damage the car or anything.
Lenders
Many people instantly think of the big 4 banks when they think of lenders in Australia, but there are dozens of options available. Each lender will have their own requirements for approving a loan which can make it a bit of a grey area for borrowers.
Luckily, the experts at OnlineLoans.com.au can help you navigate the right lender for you and will help you navigate the process (we understand it can be stressful).
Insurance?
Don’t forget that all cars bought with a car loan in Australia need to be comprehensively insured.
It can be tough to insure your vehicle without a driver’s licence, although there are some variations between different states in Australia and between different insurance companies.
Give your insurance company a call to find out if you need a licence to get comprehensive insurance.
Registration?
Why do so many people forget rego when thinking about new cars?
It’s clear that the process of getting a car on the road is often much easier with a driver’s licence and the same can be said when registering your new car and/or transferring the registration into your name.
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.
So, what’s the next step?
If you are ready to apply for a loan but don’t have a valid drivers licence, a great place to start is with an OnlineLoans.com.au quick quote.
Our friendly team of experts is able to match your circumstances and needs to a lender (niche or mainstream) from our panel of over 40, which means we have options for almost all situations.
A quote quote with Onlineloans.com.au won’t impact your credit score and can help you understand your options quickly and easily.
Other Q&A with OnlineLoans that may help
Can I Get a New Car Loan if I Already Have One?
Can Sole Traders Get Car Loans?
Stay tuned for more Q&A With OnlineLoans as we clear up car loan confusion.