A learner’s permit is the first step towards becoming a licensed driver. It is a restricted license that first-time drivers need before they can get a full driving license. The learner’s permit, also the driver’s permit, provisional license, or learner’s license allows you to drive before you pass the driving test, albeit with certain restrictions.
You cannot drive on your own with a permit. You will need a fully licensed adult driver in the car with you as you drive. The learner’s permit requirements vary by state. Some states make it mandatory for people under a certain age while others make it mandatory for all new drivers, irrespective of their age.
Buying A Car With A Permit Basics
With a driver’s permit, you can drive on all public roads and highways, as long as you are driving with an adult licensed driver in the vehicle. The permit gives you the opportunity to practice driving. A permit also enables you to buy a car as long as you have good credit.
However, you will not be able to register the car in your details until you have a valid driver’s license. The registration process requires a valid driver’s license, making it impossible to register the vehicle in your name. Nevertheless, you can register the vehicle with the details of someone you trust who has a license. Alternatively, you can jointly register the vehicle with a licensed driver.
Why People Buy a Car With a Permit?
Some people fail to understand why you can buy a car you cannot drive, but there are many scenarios where you may need to buy a car with a permit. You can buy a car with a permit if you are disabled and you need to have a car your caregiver can drive.
It is also a good idea if you have a business that needs a motor vehicle for your employees to drive. You can also buy an automobile as a gift to a licensed person. You also do not need a license to buy a collectible unit that you have no intentions of driving or if you have a chauffeur to operate the vehicle.
Difficulties and Solutions to Buying a Car With a Permit
Registration
The biggest handle you will experience when buying a car with a permit is getting it registered. You cannot drive a car on public roads unless the car is DMV-registered to the legal owner, whose name is on the title. The person on the title is technically the owner of the vehicle, irrespective of the buyer. You cannot register an automobile in your name unless you have a valid driver’s license. The issue is a problem if you want to maintain full ownership of your investment.
You can solve the problem by registering it with the details of someone you trust as long as the person has a valid license. The downside is that the car technically belongs to the registered person. Another option is to register it jointly with a close family member. Alternatively, you can register a company and use the details to register the vehicle.
Financing
You do not need a license to purchase a car as long as you have photo identification. That said, the lack of a driver’s license can affect financing options. You may find it difficult to finance a vehicle with a dealership as they require some license details.
Dealerships help buyers register their new car, which requires a license. It is always important to ask whether the dealership accepts buyers with a license before you can start the process. However, you will not experience any difficulty with bank and cash financing.
Insurance
You will need proper insurance before leaving the dealership. Most insurance providers require car owners to give their name and license number on the application, which is not possible for a person with a permit. You will not have any insurance difficulties if you are buying the car for someone else with a driving license.
However, when it comes to insuring a car with a permit, you will need to talk with your insurance provider. Some insurance companies are flexible enough to cater to different needs. You will need a primary driver to get approval, but the company can add you as an excluded driver.
Test drive
A dealership will not let you test drive the automobile with a permit. The sales agent can take you on a road test, enabling you to feel the ride experience as a passenger. Alternatively, you can bring a licensed driver to the car lot.
Steps to Buying a Car With a Permit
1. Identify the primary driver
You will need the help of a licensed driver throughout the buying process from test drive to car registration. You will also need to determine if the primary driver will legally own the vehicle. You can simplify the process by ensuring the primary driver is also the registered owner. Get the driver’s full name and license number before starting the process.
2. Get insurance
Look for insurance providers willing to work with you without a license. To avoid paying excessive fees, you should look for insurance companies that provide insurance services to unlicensed individuals at affordable rates. You will need insurance coverage to get financing and purchase the vehicle.
3. Look for friendly car lots
You will need to look for a car lot that sells cars to unlicensed buyers. Some sellers will charge a premium when selling cars to unlicensed buyers. You do not have to pay higher fees when buying a car with a permit than a person buying a license. You can also purchase from a private seller, simplifying the entire buying process as you can complete the registration later on once you get the license.
4. Pay for the vehicle
You can pay with cash, an auto loan, or through dealership financing. Paying with cash and auto loan financing is straightforward. With car dealership financing, you will need to look for a company that offers financing to permit holders.
5. Take the vehicle for a test drive
You need to bring a licensed driver to take the car for a test drive. A test drive helps you to ensure the car is in good condition and offers the driving experience you are looking for.
6. Finalize registration
The last step in buying a car with a permit is completing the registration by giving the details that you want to register the vehicle with as per the reason for buying the automobile.
