The simple answer is, under certain circumstances, you may be able to purchase a car with a suspended license. The reality, however, is that a suspended driver’s license can often stop the process, especially if you’re financing and depending on the state you live in.
Getting a Vehicle during Suspension
Technically, you don’t need a driver’s license to purchase a vehicle, especially if you’re paying in cash. When financing, some lenders will accept a valid state ID, but whether or not you can finance without a valid license depends on lender requirements.
The trouble comes when you’re trying to register and insure the vehicle – which, in most states, you can’t do if you don’t have a valid license. This is because you can’t get insurance without a valid license and anyone financing a vehicle is required to have full coverage insurance in their name. Additionally, in an effort to lower the number of uninsured drivers on the road, most states will require that a vehicle be insured before it can be registered.
It’s also illegal to drive a vehicle under a suspended license. So, you won’t be able to drive your car off the lot even if you were to get over all the hurdles. Every state is different, however, and whether or not you’re able to get all the details worked out can be a matter of where you live.
Waiting out the Suspension
At this point, the best course of action to take is typically to wait until your license is reinstated. Since it pays to be prepared, this is a great time to research vehicles, build your budget, and work on your credit.
Some tips to keep in mind:
- Make a list of features and equipment you must have for your next vehicle.
- Use online tools to help you estimate loan amounts, down payments, and possible loan terms that’ll fit into your budget.
- Calculate your debt to income and payment to income ratios.
- Get a copy of your credit reports, so you can ensure accuracy and know what to expect when the lender sees them.
- Know your credit scores.
- Make sure all your paperwork is in order for the dealership, including proof of income, residency, a working phone in your name, and six to eight complete personal references.
Remember, a car loan can be a great way to build credit if you’re struggling with challenges. So, when you’re ready, make sure you take the proper steps.
Once Your License is Reinstated
When you’re in the position to get auto financing and are able to drive a car, SLG Progressive + Commercial Insurance Agency wants to help put you on the right path. We work with a nationwide network of special finance dealers that have subprime lenders who can work with credit-challenged consumers. Get started today by filling out our auto loan request form and we’ll help you begin the process of going to the right dealer.