Q&A with OnlineLoans: Do I Need a Driver’s Licence to Get a Car Loan?

Online Loans

January 12, 2021

You asked, we answered.

Do I Need a Driver’s Licence to Get a Car Loan?

In short: No, but you need an official photo ID – like a passport or Proof of Age card.

But there are some things to consider

People want car loans, even if they don’t have a driver’s licence, for a variety of reasons. For example, they might be:

  • Getting their licence in the near future
  • Buying a car for someone else
  • Buying a car as a restoration project
  • Using the vehicle on private property (eg: a farm)

Whatever the reason, finance can likely be arranged.

Things to consider

If you finance a car without a licence, you may have to pay to transport the vehicle on a truck from the seller’s location to your home if it can’t be legally driven. This will add costs, especially when transporting long distances.

State laws & regulations
Australia’s states and territories have different laws when registering and transferring ownership of vehicles. For example, in some states, the minimum age you need to be to register a vehicle is 16, but the minimum age to apply for a car loan is 18. Check your state’s laws.

Other drivers
If you’re buying the car for another driver, be sure that they are trustworthy and sensible. Having car finance in your name is a big responsibility and you won’t want to damage your credit history or financial record if issues arise further down the line.

There are numerous finance companies in Australia. Each lender has specifics about what they require which can be a bit of a grey area for borrowers. OnlineLoans helps borrowers navigate requirements to the right solutions.

How can I get a car loan with no licence?

When applying for finance, you’ll need a government issued photo ID. Often, borrowers simply use their driver’s licence as they have it handy and it’s government issued.

If you’re applying for a car loan and don’t have a driver’s licence, make sure you have another form of valid photo ID.

For example, this could be
  • Proof of Age or Photo ID Card issued by the Australian Government
  • Australian Passport
  • Student ID Card (for initial submission only, not loan settlement)
  • Overseas Passport (but you’ll need a valid visa too)

In a nutshell, you’ll need a valid, government issued photo ID.


Don’t forget, all cars bought with a car loan need to be insured. It can be tough to insure your vehicle without a driver’s licence, although there are some variations between different states in Australia and between different insurance companies.


The process of getting a car on the road is often much easier with a driver’s licence – especially when registering the vehicle and/or transferring the registration.

Most states in Australia allow people to register a vehicle without a driver’s licence but, of course, they won’t be able to drive it on public roads.

The next step

OnlineLoans has access to a huge number of lenders that match a variety of needs. Get a quick quote to find out what rates and repayments look like.

Other Q&A with OnlineLoans that may help

Can I Get a New Car Loan if I Already Have One?

Can Sole Traders Get Car Loans?

Am I eligible for a car loan?

What is Car Loan Refinancing?

Stay tuned for more Q&A With OnlineLoans as we clear up car loan confusion.

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