Finding an Auto Loan Without a License
A lender will not give you a car loan unless you can provide proof of insurance on the vehicle you are purchasing. Once you have coverage, the next step is to find a loan, assuming you will not be paying with cash or credit. Some lenders will not provide a loan without a valid driver’s license. Others may consider it, but only if you prove that you’re going to be able to pay for the vehicle.
The reasoning behind this is that an unlicensed driver could get arrested and then not make payments. So that is why you need to prove that you will not be driving the vehicle, perhaps explaining to the lender who will be driving the car and under what circumstances.
If you are looking for the best rate, a big bank may not be the best choice. They tend to have stricter rules, and if you get a loan, it may not be an ideal rate. Many banks flat out refused to finance used cars anyway. Instead, you may want to find a credit union in your area. Credit unions tend to be more willing to work with people in unique situations. You will likely need to bring along the primary driver so you can make your case.
If you cannot obtain a fair loan through a bank or credit union, look into other routes to get a personal loan. Sometimes, a credit card with a low introductory interest rate may cover a sizeable portion of the vehicle’s price, especially if the seller is willing to cover the transaction fees. (más…)