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A lender will not give you a car loan unless you can provide proof of insurance on the vehicle you are purchasing. Once you have coverage, the next step is to find a loan, assuming you will not be paying with cash or credit. Some lenders will not provide a loan without a valid driver’s license. Others may consider it, but only if you prove that you’re going to be able to pay for the vehicle.

The reasoning behind this is that an unlicensed driver could get arrested and then not make payments. (more…)