Car Loans for Uber Drivers
Need a loan to help you purchase a car for Uber? Compare your finance options right here with Savvy.
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Uber has established itself as a giant among the growing rideshare industry, opening doors for employment and side-hustles around the country. However, before you start thinking about signing up to become an Uber driver, it’s important to know whether you can get a car loan.
That’s where Savvy can help. We’re partnered with a diverse range of lenders who can work with a wide variety of profiles. Get a quote with us today and speak to one of our consultants to get the wheels in motion on your new car before you know it!
Can I get a car loan as an Uber driver?
Yes – provided you meet the eligibility requirements set by your lender, you can qualify for a car loan as an Uber driver. However, the type of loan that’s best for you will come down to how you use your vehicle. Your main options are:
Secured car loan
Under a secured car loan, you can use your vehicle however you like. This product is best suited to those who are using it predominantly for personal purposes, such as commuting and ferrying the kids to and from school. With this arrangement, you can claim the portion of your car’s use which is dedicated to Uber work as a tax deduction, so it’s worth knowing what you can and can’t claim.
Chattel mortgage
Chattel mortgages are designed for those who use their car 51% or more of the time for business purposes. For example, if Uber is your sole income source and/or you’re working close to full-time hours, a chattel mortgage may be the most suitable option for you. These loans work the same way as standard car loans but come with a range of tax benefits, such as claimable interest, GST and depreciation. However, you can only claim this for the business portion of your car’s usage.
Car lease
Alternatively, some providers offer leasing arrangements specifically for Uber and rideshare drivers. At six to 18 months, these may be shorter terms than standard leases (one to five years), but you may look to this option if you wish to ensure continual turnover of your vehicle without the risks associated with ownership.
What are the car requirements for Uber drivers?
The specific requirements for your vehicle depend on the city you’re driving in and the type of service you’re offering. For Sydney, all cars must meet the following criteria:
- Must have a five-star ANCAP safety rating or fall under Uber’s vehicle exemption policy
- Must be in excellent working condition
- Must be no older than the maximum age for the Uber vehicle option chosen
- Must be a 4-door car or passenger van
- Must be no more than 12 seats, including the driver’s seat
- Must be able to pass a pink slip inspection
- Must be registered and CTP-insured in New South Wales
- Free from damage such as scratches, scuff marks and indentations like hail damage
- Free from commercial branding (which Uber classes as graphics or wraps greater than 20cm × 20cm)
It’s also worth noting what the specific requirements are for each Uber class. In addition to the above, these are:
- Must be no older than 15 years (as measured by the manufacture date)
- Must seat four to seven passengers (plus the driver)
- Must have working windows and air conditioning
- Must not be taxis, ex-taxis, ex-driving school, branded, government or rebuilt vehicles
In addition to UberX requirements:
- Must be a four-door SUV or large passenger van
- Must seat six to seven passengers (plus the driver)
In addition to UberX requirements:
- Must be considered easily accessible for passengers
- Must be able to accommodate folding wheelchairs, collapsible scooters, walkers and other assistive devices
In addition to UberX requirements:
- Must be a mid-sized vehicle with extra legroom (Uber considers this to be at least 91cm
- Must be no older than seven years (as measured by the manufacture date)
In addition to Uber Comfort requirements:
- Must be a fully electric vehicle from Uber’s approved car list
In addition to UberX requirements:
- Must be a minivan or people-mover which comfortable seats a minimum of seven passengers (plus the driver) with at least three rows of seats
- Must have rear sliding doors
- Must have sufficient luggage space without folding down any rows of seats
In addition to UberX requirements:
- Must be no older than seven years (as measured by the manufacture date)
- Must be a high-end four-door vehicle
- Must comfortably seat four passengers (plus the driver)
- Must have commercial vehicle insurance if operating as part of a fleet
Can I finance my car through Uber?
Yes – depending on the city you’re driving in, you may be able to take out a rental, short-term rental or rent-to-own arrangement through Uber. Rental agreements can vary from as little as seven to 14 days (or sometimes not have a minimum), while rent-to-own may have a minimum six-month term. However, it’s important to compare your options carefully to determine which is the most cost-effective and suitable for your needs.
How much will my Uber car loan cost?
The cost of your car loan will come down to a wide range of factors, including the following:
- The size of your loan
- Your interest rate
- The fees charged by your lender
- The length of your loan term
- Whether you make additional repayments
- Whether you pay your loan weekly, fortnightly or monthly
- Whether you’ve chosen to have a residual payment (also known as balloon payment) and its size
Arguably the most significant cost factor of all is your interest rate. You can see in the table below how this occurs:
| Loan amount | 7.00% p.a. interest | 8.50% p.a. interest | 10.00% p.a. interest |
|---|---|---|---|
|
$20,000 |
$396 |
$410 |
$425 |
|
$35,000 |
$693 |
$718 |
$744 |
|
$50,000 |
$990 |
$1,026 |
$1,062 |
|
$65,000 |
$1,287 |
$1,334 |
$1,381 |
|
$80,000 |
$1,594 |
$1,641 |
$1,700 |
All figures above are calculated based on a five-year term with monthly repayments.
As you can see, the higher the interest, the more you’ll pay overall, with the same applying to increasing loan sizes. You can speak with one of our experienced consultants about your loan needs and we can help you compare your options to find the cheapest available for your situation.
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