Getting a learner’s permit can be an exciting moment that marks a successful step toward obtaining a standard driver's license. As an aspiring driver, getting your permit may even have you jumping ahead and shopping for cars.
While it’s never too early to shop, actually buying a car with a permit will pose many obstacles. Odds are, you’ll be waiting until you have your official driver’s license before you buy a car.
Challenges of buying a car with a permit
It’s very unlikely you’ll be able to buy a car with only your permit. A driver’s license is required in some capacity to test drive, finance, insure and register a car.
Can I test drive a car with a permit?
For liability reasons, most dealerships will require you to have a valid driver’s license before letting you test drive a car. Feel free to call around and inquire whether a dealer will allow drivers to test drive cars with a permit, but the answer might be “no.”
Can you finance a car with a permit?
Unless you get a hand-me-down or pay cash for your first car, you’ll need to apply for financing. Lenders may accept a state-issued ID or passport may be acceptable, but for a car loan, most lenders will require a driver’s license to verify your identity. The lender will then review your credit score, debt-to-income-ratio and other financial information to determine if you qualify for a car loan.
Can you buy insurance with a permit?
When buying a car, you usually have to provide proof of insurance to the dealer. Most dealers won’t let you drive off the lot without verifying insurance. Most insurance companies require you to hold a driver’s license to purchase a policy. While unlikely, there is a slight chance that another form of ID will be accepted to open a car insurance policy in your name.
Can you register a car with a permit?
Registering your car will be difficult if you only have your permit. State requirements can vary. Consider checking with your state’s Department of Motor Vehicles (DMV) to understand if registering a car with a permit is possible. However, as is the case with other steps in the car-buying process, a driver’s license is often the required ID for vehicle registrations.
How can you prepare to buy a car with a permit?
The official car-buying process may not be worth starting when you have your permit. Major steps like insuring the car, qualifying for a loan and registering the car are difficult without your driver’s license. However, there are some steps you can take to get ready for the long-awaited day when you earn your license.
1. Set a budget
If you plan to borrow money for your car, it may be important to know if you can afford your monthly car payment first. Use an online monthly car payment calculator to help estimate what you might expect to pay each month and over the full loan term.
2. Explore financing
Before you apply for financing, consider seeing if you prequalify for a loan. This can help estimate your likelihood of securing financing and clarify your budget. If you hold a permit and don’t have much or any established credit, or want to finance a car with a bad credit score, you may be able to do so with a co-signer.
3. Shop for insurance
Finding an insurer that is open to working with permit-holders will be challenging, but you may be able to locate one after calling around different companies. Liability coverage is usually the minimum requirement to purchase a car, whilecomprehensive insurance policies cover a variety of possible issues.
4. Shop for your car
Now, the fun part. You’re free to browse the numerous websites and print media devoted to car shopping. Even if you feel limited to buying a used car, there are plenty of resources available to help you understand your options when it comes time to complete a purchase.
5. Get your license
Awaiting the day you get your license can test your patience. A couple ways you might pass the time are continuing to practice driving and brushing up on tips to help you pass your driver’s test. Once you do, smile for your picture and leave the DMV a licensed driver.
6. Purchase your car
Once you purchase insurance coverage and, if needed, secure financing, then you’re ready to purchase your car. All your research and preparation leads here, and soon enough you can be driving on your own.
In summary
Buying a car with only a permit poses significant challenges. You may find few dealerships and insurance companies willing to work with you. Without car insurance or a driver’s license, you may not be able to finance a car purchase. Registering a car without a driver’s license is also very unlikely. Overall, while you may not be able to buy the car, there are plenty of steps to take to prepare.
