Car Finance on Learners

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CrenulateInk98

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Evening Everyone,
A good friend of mine who has been using public transport for a few years has recently passed his learners and is looking at getting a small car, something like an i20 or a Corsa Lite.
He asked me if he would be able to get finance with only a learners under his belt. Seeing that I have absolutely no idea I opted to ask you guys instead.

Thanks
 
Well that's an interesting question. I know you don't need to submit your driver's license with your finance application. You do, however, have to show the dealership your proof of car insurance before you can collect a car from the dealership. For car insurance, you do need a driver's licence.
 
KhoisanX said:
It will make no difference. Can't recall an insurance company ever asking for a licence.
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You mean apart from where they ask you for how many years have you had a driver's licence? :P That's one of the critical factors influencing your insurance premium.

I've got no clue what they'd say if you answered "Zero years" lol.
 
You friend should go book driving lessons because driving without a licence it's a disaster waiting to happen. I don't know about finance house financing someone without licence but I know you can get insurance for learner driver, but you must always drive with someone with driving licence.

Honestly I advice many people to go do licence even if you are not planning to buy a car anytime soon. So by the time you buy a car the premium will be less. I'm currently paying R1 150 for a small car because my licence is new. My best friend she was paying R1 900 for Ford Figo.
 
HapticSimian said:
:wtf: You do. Banks won't finance unlicensed applicants, nor will insurers cover them.
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Does a learners qualify as "licensed" then? I see some learners drivers on the road and always wonder how they were able to finance the vehicle if not bought with cash
 
HapticSimian said:
:wtf: You do. Banks won't finance unlicensed applicants, nor will insurers cover them.
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*scratches head* I can't remember, honestly, it's been five years since I financed a car (thank goodness!). I don't have any specific recollection of handing over my driver's in the dealership, but I guess it happened somewhere between the penis measurements and the anal probing.
 
EthanJappie said:
Does a learners qualify as "licensed" then? I see some learners drivers on the road and always wonder how they were able to finance the vehicle if not bought with cash
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How do you know they are learners?
 
EthanJappie said:
Does a learners qualify as "licensed" then? I see some learners drivers on the road and always wonder how they were able to finance the vehicle if not bought with cash
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It absolutely doesn't qualify, no. And no, you see some people with red Ls stuck to their cars' rear windows; it doesn't follow that the driver is necessarily on a learner's license. ;)

When you see people on the road with that red L on their car, give them a wide berth regardless. It's become common practice for novice, but licensed, drivers to adorn their cars with learner's signs. Their thinking is that other drivers will be more careful around them, thus lessening their odds of being driven in to. Observation will show you though that a large number of them can't bloody drive anyway. :D
 
EthanJappie said:
Assuming from the big red L on the back
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What makes you think they own the car?

****

You cannot insure a car without a driver's license and therefore you cannot finance one.

Not from a reputable vehicle finance institution anyway.

You can go to a loan shark of course.

There's a simple solution to all of this though...just get a license and THEN buy the car.
 
Foxhound5366 said:
*scratches head* I can't remember, honestly, it's been five years since I financed a car (thank goodness!). I don't have any specific recollection of handing over my driver's in the dealership, but I guess it happened somewhere between the penis measurements and the anal probing.
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It's in the same section of the application where you need to state your blood type. :p

It's a condition of finance, so the only time a dealer might not bother asking would be in the case of a cash purchase. It's also necessary for insurance, and even if your insurer doesn't ask at inception of your cover - they should - come time to claim you'll be up **** creek without a paddle if you're not licensed.
 
EthanJappie said:
Assuming from the big red L on the back
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Lol dude are so wrong I'm one of those with big red L on the back, and I have a driving licence. Having that big red L on the back is to warn other drivers that you are new and you may make mistakes. They must be careful while driving close to you . My driving I'd perfect now but I still have that big red L just to be on a safe side.
 
No guys you can get insurance without licence just learner driver but you must always drive with someone with licence always. I know mi way offer this but my advice get license
 
I had insurance on learners. However cannot get finance on learners. Insurance on learners is a bit more than on license and if you get involved in a crash, even if its not your fault you have to have a licensed driver with you otherwise they wont pay. They might pay the other party though if it is your fault.
 
1. You can own a car without being a licensed driver. Even a minor child can be the legal owner, as can a company, for example. If the proposed owner is creditworthy then he/she/it can negotiate a loan from a finance company.

2. To take out insurance on a car (or anything else for that matter), all you need is an insurable interest. It's up to you to negotiate with the insurer. It is perfectly possible for someone without a driver's licence to own and insure a car. An old lady, for example, owns several cars, has no driver's licence, and has a driver on her staff. All her cars are comprehensively insured.

3. Operating a motor vehicle on a public roadway requires that the operator be duly licensed by a competent authority.

4. Most insurance companies contractually stipulate that their indemnification ceases (ie there is no cover) if a loss occurs while the vehicle is operated by an unlicensed driver. Depending on the circumstances, this may or may not stand up in court.

5. If you are the owner-driver, make sure you have a valid driver's licence. You don't need a licence to obtain the insurance, but you will most certainly need it for any claim to be upheld. Your insurer might also have a whole raft of other stipulations, eg other defined drivers, whether other driver is employed/paid as a driver, private use vs business/professional use, etc, etc. Make sure you understand.
 
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Semisane said:
Lol dude are so wrong I'm one of those with big red L on the back, and I have a driving licence. Having that big red L on the back is to warn other drivers that you are new and you may make mistakes. They must be careful while driving close to you . My driving I'd perfect now but I still have that big red L just to be on a safe side.
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If you no longer have a learner in your car, please take the L off, you don't need it once you've become a driver and it doesn't indicate other drivers to be careful around you, they will more than likely drive impatiently around you. If you've had your license longer than a month you should definitely take the L off.
 
IIRC a few years back Nedbank financed vehicles if the purchaser had learners. Interest rates started at prime + 8% to 10% for good credit scores. I don't even want to think what insurance would've been.
 
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