Auto Loan with Learners Permit (drivers License)

Anonymous · ‎05-18-2015

I got asked a very interesting question yesterday about my friend's wife having a driving license permit in texas but not a TX drivers license.

She has been in the US for 8 years and have established credit, however, never ever had a need to drive a car. her FICO scores are 590 TU, dont know other scores.

She was about to buy her first ever car and needed to know if she could get an AUTO loan based on having a TX learners permit?

She has always had her Texas ID with her and renewed her driving learner's permit for another 5+ yrs i guess.

ezdriver · ‎05-18-2015

Wow...that is an interesting situation. I would say no because a learner's permit does not meet the requirements for a driver's licence as the former has restrictions that the latter would not? Learning to drive ...for more than 5 years? I don't know how one explains that to a lender.

StartingOver10 · ‎05-18-2015

@ezdriver wrote:
Wow...that is an interesting situation. I would say no because a learner's permit does not meet the requirements for a driver's licence as the former has restrictions that the latter would not? Learning to drive ...for more than 5 years? I don't know how one explains that to a lender.

Agree 100% with EZ^^^.

She needs to actually get her license. How would she insure the vehicle without a drivers license? A learners permit does not equal a drivers license. There are significant restrictions to a learners permit.

Anonymous · ‎05-18-2015

UpDate:

Credit Union/ Banks/Dealerships allow a Auto loan under the learner's permit holding driver as long as she can be the named person on the auto insurance policy.

Thats very very good to know.

She is listed on husbands auto insurance policy as a learners permit holder but being member of household over 25 and a form of drivers license, she had to be enlisted along with husband.

With a learners permit, all she cannot do is drive a car alone. (Has to have someone with her while driving).

When applying for auto loan under her name, the requirement if i understand it correctly is a valid drivers license ? whats considered valid is iffy at best?

i was indeed wondering about it myself. will call around dealerships and confirm? i m in Texas. Hopefully its the same nationwide.

StartingOver10 · ‎05-18-2015

@Anonymous wrote:
UpDate:

Credit Union/ Banks/Dealerships allow a Auto loan under the learner's permit holding driver as long as she can be the named person on the auto insurance policy.

Thats very very good to know.

She is listed on husbands auto insurance policy as a learners permit holder but being member of household over 25 and a form of drivers license, she had to be enlisted along with husband.

With a learners permit, all she cannot do is drive a car alone. (Has to have someone with her while driving). Not just someone with her, but a legally licensed person over the age of 21 has to be with her. I consider this to be significant. Aren't there other restrictions too - like not driving after a particular time of night? I will see if I can find the Texas restrictions for you.

When applying for auto loan under her name, the requirement if i understand it correctly is a valid drivers license ? whats considered valid is iffy at best? I don't think the DMV would agree with your assessment - the license is either valid or not. There are specific requirements. Will look for that link for you too.

i was indeed wondering about it myself. will call around dealerships and confirm? i m in Texas. Hopefully its the same nationwide.

I think it is very scary that someone is driving with a learners permit for years on end. When they are in a 'student driver' automobile you can avoid them because the automobile is marked as a warning so other drivers steer clear. When she is driving in her own vehicle there is no such warning. It is one thing to have a learners permit for a couple of months but to have it for years on end is another matter entirely. What is keeping her from actually following through? It must be significant or she would get her license.

EDIT: link for invalid DL in Texas and how to reinstate: https://www.txdps.state.tx.us/DriverLicense/dwli.htm

EDIT: link to Texas DMV http://dps.texas.gov/DriverLicense/

Make sure you are on a .gov site and not one of the many consumer sites that look like .gov

At least then you will get the right info.

Anonymous · ‎05-19-2015

Thanks for the links starting over.

My research is ongoing.

Anonymous · ‎01-04-2017

How does this work in Ohio?

My girlfriend has a learners permit for the past 4 months. She isn't able to practice much (no car) and needs to purchase one as soon as possible. It's not really an issue of finance or credit since she would be paying cash for an old beater that she will learn to drive with.

In Ohio, with a learners permit, is one able to be insured (only the state mandated minimum coverage is required, not full-coverage) and thus purchase a vehicle?

If no one can answer this, maybe can you point to the right direction?

fltireguy · ‎01-08-2017

@StartingOver10 wrote:
@ezdriver wrote:
Wow...that is an interesting situation. I would say no because a learner's permit does not meet the requirements for a driver's licence as the former has restrictions that the latter would not? Learning to drive ...for more than 5 years? I don't know how one explains that to a lender.
Agree 100% with EZ^^^.

She needs to actually get her license. How would she insure the vehicle without a drivers license? A learners permit does not equal a drivers license. There are significant restrictions to a learners permit.

Playing the devils advocate here.

Progressive will insure you if you are suspended. They will also insure you if you are unlicensed.

NFCU $60.4k/PenFed $22.5k/Commerce $15K/53 $11K/Synovus $14K/BBT $11K/CapOne $12K/DCU $7.5K/BMO $7.5K/Chase $14.5k/Cabelas $10K/ and many many more!
Total CL $398600, plus car and RV loan.
Ooh. Ooh. Getting closer to that $500K mark!

StartingOver10 · ‎01-09-2017

@fltireguy wrote:
Playing the devils advocate here.
Progressive will insure you if you are suspended. They will also insure you if you are unlicensed.

^^^Wow! This is unbelievably scary! It's one thing to intellectually know that some people drive when they have no business being behind the wheel of a vehicle - it is something else to know that the number is so large that at least one insurance company has decided to service this dangerous market!