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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. Find out all about your finance options as a rideshare driver with us today!
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 primarily 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 50% 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
- Must be free from damage such as scratches, scuff marks and indentations like hail damage
- Must be 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 a taxi, ex-taxi, ex-driving school, branded, government or rebuilt vehicle
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 an eligible hybrid or fully electric vehicle
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 that comfortably 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 apply with Savvy and speak to 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.
Common questions about car loans for Uber drivers
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Written by Fact checked
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for car loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
