It is absolutely legal to purchase a car in Canada without having a driver’s license. However, the buying of an undocumented vehicle is legal and more especially easy but it comes with some problem that touch on insurance, registration and even usage of this vehicle. Here is the list of the primary considerations that should be made.
1. Buying the Vehicle
Buying a car in Canada does not need a driver’s license. Whether it is cash or an agreed amount that you are going to take a loan to pay, you can purchase a car. But getting the funding might be slightly easier said than done. Many conventional lenders and banks ask for a valid driver’s license when approving an auto loan. If you don’t have a license, you may have to go for a financed package where you have to pay the amount in full or consider taking a license holder co-signer. A few of the dealership may accept in house financing with some other form of identification like passport etc., but they are very few and are very costly with high interest rates.
2. Insurance Challenges
It is possible to buy a car without a driver’s license but to insure it is where you can run into the most problems. In Canada, one must have car insurance before even getting a vehicle registered on the road. Many insurance companies insist on having at least one licensed driver to be included in the insurance policy. If you do not have a license, you can include another licensed person, say a relative, spouse or friend to be the main driver on your insurance policy. However, this is likely to raise the premium of the policy for the primary policy holder.
If you do not have a valid license then your insurance coverage is very restricted and is in most cases costly. Some specialty insurance companies are known to offer coverage but this is usually limited and charges a lot of money for it. In fact, without insurance, it is impossible to register your car and drive it legally.
3. Vehicle Registration
After you have bought the car you need to go to the local provincial government and register the car. In order to register a car in Canada one has to provide a proof of insurance, driver’s license and identification. This can be a problem for people who do not possess a driving license because in order to register the vehicle you must insure it. Did you know that even if you have legal title to a car you cannot drive or register the car without solving the insurance and registration issues.
4. Owning Without Driving
A lot of people make purchases with automobiles for reasons other than transportation. For instance, some buy cars with a view of reselling them or they buy them for use by somebody else. Some may be involved in purchasing cars for collection. If you do not plan on to actually drive the automobile but you wish to acquire one, you can provided it is not to be driven and is well kept. However, you will still need to make sure it has insurance and registration done on it.
Further, two extra costs should be considered, which may be observed in the further prospect, including the cost of storage, further maintenance, and insurance. If you are incapable of driving then there are some other costs that you would be able to mark in the process such as towing of the car.
5. Policies for Buying Without a License
If you find that buying a car without a license is too complicated, you have other transportation options:
- Car Sharing and Rentals: Other examples of firms include Zipcar or Car2Go where one can hire a car for short periods without having to purchase the car. There are probably some services that are less strict in their demands but in most cases you still need a driver’s license.
- Ridesharing: If you don’t need a car for long distances, there are platforms like Uber or Lyft for shorter distances at a relatively low cost.
- Public Transportation: Though every large Canadian city has the system of buses, subways, and trains well developed so one can easily use them till the moment he gets the license.
Conclusion
Therefore, while it is legal to buy a car without having a driver’s license in Canada, owning as well as using the car is in many ways unlawful. Insurance and registration are the largest barriers, and without a driver’s license, you will have to rely on a licensed person to be the main driver in the insurance policy. However, if you do not plan to use the car you are purchasing, then additional expenses such as the cost of maintaining, insuring as well as storing the car are additional costs ought to be included. Especially if you do not mind getting a license in the near future, there are better alternatives, for example car-sharing, or using public transportation.
