I was asked a curious question about car loans: Can a car loan be declined because the applicant doesn't have a driver's license? My response was that there is nothing in a Reg that would address that, as it is not a prohibited reason. If the applicant qualifies based on our criteria, then we make the loan. I would think that might be a call the dealer would make as to whether or not to sell the car.

Any thoughts?

If the person is financially qualified for the loan, the fact that they do not have a drivers license is not an issue. For example, what if a person wanted to purchase a van because they are handicapped and since they have seizures, the state will not allow them to have a drivers license. By not declinign the loan, you could be violating fair lending laws by discriminating.

My question would be more along the line can the owner of the vehicle get it insured without a valid DL? If not I definitely would deny based on that reason.

As for denying based on no DL, I tend to agree with complianceman but in reality someone not having a DL is not a protected class. However, the reason they don't have a DL could throw them into one.

So if Stevie Wonder wanted to add a Lexus to his fleet, do you think a dealer's going to refuse the sale?

Stevie Wonder could be buying the vehicle (and appying for financing) for his driver to drive him around in. Stevie wouldn't have a driver's license, but his driver would. Therefore, the vehicle would be insurable.

I would want to get more details than the "applicant doesn't have a DL."