Uber car loans

Driving for Uber can be a profitable side hustle or even a full-time gig. But if you’re going to earn money as a rideshare driver, you’ll need your own car. Unless you have enough money to pay the full sticker price, you’re going to need a car loan. In this guide, we’ll show you how to compare Uber car loans and get the financing you need to start earning as an Uber driver.

Compare car loans for Uber car financing

Related: How to make money online

Can Uber drivers get car loans?

Yes, Uber drivers can get car loans. However, you’ll need to meet the lender’s eligibility criteria to qualify for financing.

The exact criteria you need to meet varies between lenders. While traditional lenders like banks and credit unions have strict requirements, online lenders tend to be a little more lenient. You can also apply for dealership financing when buying a car, but it’s worth comparing other car loan offers first to make sure you’re getting a good deal.

Lenders will consider your credit score and income when assessing your ability to repay a loan. When applying for a loan, you can include income you’ve previously earned driving for Uber. But some lenders may not view rideshare driving as a stable or sufficient source of income, so it could be a little more difficult to get approved if this is your sole source of income.

Must read: Best car loans in Canada

What are Uber car requirements in Canada?

It’s up to you to decide which type of car to drive for Uber, but there are a few vehicle requirements for Uber that your car must meet. These vary based on where you live, but generally:

• Your vehicle must be less than 10 years old (or newer, depending on the city you’re in).
• Your vehicle must have four doors.
• Your vehicle must be in good condition with no cosmetic damage or commercial branding.
• Your vehicle must not be salvaged or rebuilt.
• You must be listed as an insured driver if the vehicle you’re using isn’t yours.

Your vehicle will also need to pass an inspection each year, and you’ll need to ensure that all routine maintenance is completed.

Eligibility requirements for Uber car loans

While eligibility requirements vary among lenders, you generally need to meet the following criteria:

• Be the age of majority in your province. This is either 18 or 19, but keep in mind that you need to be at least 21 to drive for Uber.
• Be a Canadian citizen or permanent resident.
• Have a steady source of income.
• Meet minimum credit score requirements.

How to compare Uber car loans

Consider the following factors when comparing your Uber car financing options.

Eligibility requirements

Requirements vary by lender. Basic eligibility requirements include being a Canadian resident with a valid address, government-issued ID and a bank account. After that, lenders focus on your credit score, employment situation and income.

Interest rate

Compare car loan interest rates to find the best available rate. Financing as low as 0% is available, but you’ll need strong credit to qualify for this type of deal.

Loan term

Car loan repayment periods generally range from 12 - 96 months. A longer loan term means smaller monthly payments, but it also means that you’ll end up paying more interest over the full repayment period.

Repayment schedule

Check if the lender will let you choose a repayment plan that suits your income, such as weekly, bi-weekly or monthly payment plans. Also be sure to check if you can pay off the loan early without incurring a prepayment penalty.

Fees

Some lenders will charge an origination fee when you take out a loan, which is often calculated as a percentage of the amount borrowed. You should also check the fine print for details of any late payment or NSF fees attached to your loan.

Down payment

Check if the lender requires a minimum down payment, such as 10% or 20% of the vehicle’s price. Zero down payment car loans are available, but you may need to settle for a high interest rate.

How to apply for Uber car loans online

You can apply for a car loan by completing the following steps:

1. Choose the vehicle you want to buy, and make sure it meets the vehicle requirements for Uber in your city.
2. Compare lenders and loans to find an Uber car loan with a competitive rate and repayment terms that suit you.
3. Visit your chosen lender’s website and select Apply now.
4. Submit an application with your personal information, contact details, income & employment details, down payment amount, desired loan amount and details of the vehicle you are purchasing.
5. Provide any documents the lender requests to process your application, such as proof of ID, proof of income and proof of employment.
6. If approved, your lender will send you a loan contract for review. Carefully review all the details of the contract before signing.

Representative example: Lana gets Uber car financing

Lana works part-time as a substitute teacher in Ontario, but decides she wants to also drive for Uber to supplement her income. She wants to buy a 2025 Honda Civic LX. After choosing her desired trim and accessories, she knows her new vehicle will cost $29,500.

After comparing a range of car loan providers, Lana gets approved for a car loan with an interest rate of 7.99%. She needs to make a 10% down payment of $2,950, which leaves her with a total of $26,550 to repay over a 5-year loan term. Here’s the full cost of the loan.

Loan amount	$26,550
Loan term	5 years
APR	7.99%
Monthly payment	$538.21
Total cost to repay loan	$32,292.67

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

How much will my Uber car loan cost?

Use this calculator to view your potential monthly payments based on the loan amount, interest rate and loan term.

• How to use this car loan payment calculator

  1. Enter the amount you want to borrow to buy a new car under Loan amount. This might not be the same as the cost of your car, since many lenders require a down payment.
  2. Write the amount of time you have to pay off your car loan under Loan terms (in years). If your loan term is in months, divide it by 12 first.
  3. Enter the interest rate you expect to pay on a car loan under Interest rate. If your car loan comes with fees, enter the annual percentage rate (APR) instead.
  4. Click Calculate.

  In addition to your monthly payment, this car loan calculator shows how much you’d pay on your loan’s principal amount and how much you’d pay in interest overall. The principal amount is the amount you borrowed and should be equal to your loan amount. Total interest is the amount you would pay on top of the principal. This is the cost of having your loan.

Can I rent a car from Uber to earn as a driver?

Yes, but this option is currently only available in Montreal and Vancouver. In these two cities, Uber has a Vehicle Marketplace where you can rent a road-ready vehicle from Hertz or Avis.

Once you’ve signed up as a driver, visit the Vehicle Marketplace via the Uber app to find out what cars and offers are available in your city. Then follow the vehicle partner’s instructions to reserve and pick up the vehicle. You’ll also have to provide a refundable security deposit (for Hertz, it’s $265).

Renting a car may be a viable short-term option if you need some extra cash or want to try driving for Uber before making it a regular gig. But in the long run, getting a car loan to buy your own car might make better financial sense.

Bottom line

If you need a car loan to drive for Uber, there are several financing options available. Compare Uber car loans to find the best rates and repayment terms for your needs. Learn more about your car financing options here.

Frequently asked questions

• Does Uber offer car financing or an Uber car buying program?

  No. While Uber previously offered a financing program, this is no longer available. If you need a car loan to buy a vehicle to use as an Uber driver, you'll need to consider financing options from other providers.

• Can I lease a car for Uber?

  It depends on the terms of your lease. Many lease agreements prohibit you from using your vehicle for rideshare purposes. A lease also comes with vehicle mileage limits, making it impractical to use a leased car for Uber.

• Are there any separate requirements for driving for Uber Eats?

  No. Getting approved for Uber Eats requires the same documentation needed to drive for Uber. However, older vehicles are eligible for Uber Eats delivery drivers to use. Vehicles from 1990 are acceptable, but vehicles older than this are not.

• How much can I make driving for Uber in my spare time?

  It depends on where you live, how many hours you clock in and what days of the week you drive. Check online forums where other drivers share their experiences working with Uber in your city to get an idea of how much you could make.

• What documents will I need to apply to become an Uber driver?

  Uber requires new drivers to provide the following documents:

  • A valid driver's licence
  • Proof of work eligibility
  • Proof of vehicle registration
  • Proof of car insurance
  • Proof of vehicle inspection
  • A driver profile picture

  You may be asked to provide additional documentation, depending on where you live.

• What are the best cars for Uber?

  If you're wondering which car is good for Uber, there are a few factors that make specific cars well suited to Uber drivers. As vehicles need to be less than 10 years old to qualify for Uber—or potentially even newer, depending on where you live—you'll want a new or late-model car.

  The best cars for Uber also have excellent fuel economy, which lowers gas costs. You may want to consider a hybrid vehicle, because these can be cheap to insure and maintain. The CAA's Driving Cost Calculator is a handy tool you can use to get an idea of how much various models cost to own.