4315 North Service Road, Burlington, ON, L7L 4X7
My Garage

Can you get a car loan to be an Uber driver?

Can you get a car loan to be an Uber driver?

There is no doubt that Uber is one of the few companies to ever live up to it’s ‘disruptive’ moniker. It has changed taxis and paid travel completely and shows no sign of letting up. Not only has it changed the way we travel, it has also opened up different opportunities to earn. Which begs the question, can you get a car loan to become an Uber driver?

You can get a car loan to become an Uber driver. The more pertinent question is should you.

Uber has some requirements for the vehicles their drivers use. The vehicle has to be:

  1. No older than 15 years old.
  2. Have four doors.
  3. Carry at least 4 passengers.
  4. In good condition and roadworthy.
  5. Not salvaged or rebuilt.
  6. Have no commercial branding or taxi ads.
  7. Fully insured for hire.

Uber and car loans

Uber used to run their own car finance arrangement but sold it on. It never seemed to offer very good value to my eyes but quite a few people took out Uber-funded finance for their cars. You can also lease a car from an Uber partner, but again, you will have to check carefully to see if it is competitive or not.

If you’re thinking of becoming an Uber driver, either as your main income or to supplement it, you can use a standard car loan to finance it.

Car loans and Uber

The big question is not can you get a car loan to be an Uber driver but whether you should or not. It isn’t for us to tell you the answer to this question, rather for you to figure out for yourself.

If you’re planning to supplement your income with Uber, the loan is less of an issue. As long as your main income could cover slow weeks and you have a few payments in the bank just in case, there should be no issue with a car loan.

If you’re planning to use Uber as your main or only income, you need to think carefully about whether borrowing is a good idea. Uber drivers increasingly complain that they cannot earn enough to survive. Some drivers also report that being an Uber driver is not enough for a main income. This will obviously vary depending on how many hours you can work, your other outgoings and the city you’re working in but don’t believe the hype.

Do your research thoroughly and make sure your city has the demand for another Uber driver, has enough work to satisfy your needs and you are prepared to put in the hours and effort to earn enough to pay your car loan and other outgoings.

Some drivers can make enough money from Uber to live comfortably. Many cannot. Some drivers work for both Uber and Lyft. Like any career change, do your research carefully to make sure the move is the right one for you. Only when you have done your math should you commit to a car loan.

Car loans are fixed borrowing. They do not consider months where you don’t earn and do not have sympathy for slow months. Like any financial commitment, they can be the perfect solution in some circumstances. They can also be a burden in others. Make sure you know which is which before you commit.

Then come visit Car Nation Canada. We have access to some great lenders who offer competitive rates. We also have a huge range of new and certified used vehicles ideal for Uber.

Categories: News

Tags: , ,