Uber has established itself as a giant in Australia’s rideshare industry, creating opportunities for full-time work and flexible side income.
If you’re considering becoming a driver and need a vehicle, there are several ways to access one. While Uber’s approved partners offer rental and lease options, buying your own car with a personal or commercial car loan may be a more practical choice in the long term.
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. The type of loan that’s best for you will come down to how you use your vehicle.
As an independent contractor, your main options are:
Secured car loan
With a secured car loan, you can use your vehicle however you like. This product is best suited to drivers using their car primarily for personal purposes, such as commuting and ferrying the kids to and from school, and undertaking occasional ridesharing work on the side.
With this arrangement, your car doesn’t need to be registered as a business asset, and you won’t need to provide an ABN as part of the application. However, you can claim the portion of your car’s use that is dedicated to Uber work as a tax deduction.
Chattel mortgage
If you use your vehicle primarily for business purposes (more than 50% of the time), a chattel mortgage may be the most suitable option.
These loans may also come with a range of tax benefits. However, you’ll usually need an ABN registered for at least six months to apply.
What expenses can Uber drivers claim?
If you have a chattel mortgage, you may be able to claim loan interest, GST on the purchase price, depreciation and running costs.
If you have a secured car loan and use your vehicle for both personal and Uber driving, you can generally only claim the business-use portion of eligible expenses.
Why apply for a car loan with Savvy?
Can I get a car through Uber?
Uber doesn’t provide car loans or financing itself, but it does partner with third-party providers like Karmo and Splend through its Vehicle Marketplace to help drivers access cars.
Depending on where you live, you may be able to choose from short-term rental or rent-to-own arrangements to suit your situation and budget, with rental terms ranging from as little as 7 to 14 days and rent-to-own options often running for a minimum of six months.
You’ll need to arrange the agreement directly with the provider, and once your vehicle is ready, it must be added to your Uber profile, though some partners can assign the vehicle automatically to your account if you give consent to link your Uber profile.
You can also access a rideshare-ready vehicle through providers that aren’t connected with or endorsed by Uber. These may offer short-term rentals, leases or rent-to-buy arrangements, although the vehicle will still need to meet Uber’s eligibility requirements before you can use it on the platform.
Uber Vehicle Marketplace vs car loan: how should I finance my car?
The right option depends on your budget, how often you drive and whether you're in it for the short or long term.
| If you… | Consider… |
|---|---|
| Drive Uber occasionally | Secured car loan |
| Use your vehicle mainly for business | Chattel mortgage |
| Need a vehicle quickly | Uber Vehicle Marketplace |
| Aren't sure Uber is long term | Rental or lease |
| Want potential business tax benefits | Chattel mortgage |
Each option comes with its own advantages and trade-offs. Here’s a breakdown of the pros and cons:
Uber Vehicle Marketplace
Pros
- You can access a vehicle quickly, often within a few days, with no credit check required by many providers.
- Most rental options include registration, insurance and maintenance, helping reduce upfront costs and simplify ongoing expenses.
- All vehicles listed meet Uber’s eligibility criteria, and you can see which services (like UberX or Comfort) each car qualifies for.
- Most partners allow personal use, meaning you can drive the car outside work hours for day-to-day tasks.
- Your vehicle choice is limited to what Uber’s rental partners have available in your city, and may not be available at all, depending on where you live.
- While personal use is generally permitted, you may need approval for extended travel or non-rideshare use, such as a long road trip.
- Most rental agreements come with weekly kilometre limits, which can be restrictive for high-kilometre drivers.
- Weekly kilometre limits and ongoing rental fees can add up quickly, making long-term renting more expensive than buying. You also won’t have any ownership or equity in the vehicle.
Car loan
- Taking out a car loan allows you to own the vehicle outright, giving you full control over how and when you use it.
- There are no restrictions on how much you use the car or what for, so you can drive the car for work, errands, road trips or anything else without limitation.
- You have access to a wide range of makes, models and price points, allowing you to choose a vehicle that best suits your budget and preferences.
- Financing a car is often more cost-effective in the long run, especially if you plan to drive full-time or keep the car for several years.
Cons
- The application and approval process can take time, so it’s not the fastest way to get on the road.
- Your credit history and financial stability may affect your ability to qualify, especially for lower interest rates.
- You’ll be responsible for all ongoing costs, such as maintenance, servicing, insurance and roadside assistance, as well as any wear and tear caused by passengers.
- You’ll need to ensure the car meets Uber’s vehicle requirements, which can vary by city and service type.
What should I look for in an Uber vehicle?
To drive with Uber in Australia, your vehicle must meet Uber's minimum standards. While the exact requirements vary depending on your city and the specific Uber service, most vehicles will need to:
- Be a four-door passenger vehicle able to transport at least four passengers.
- Meet Uber's maximum vehicle age requirements for your location.
- Be registered and insured in your state or territory.
- Be in good mechanical and cosmetic condition.
- Pass any required vehicle inspection.
- Meet Uber's safety requirements, including any applicable ANCAP standards.
Before buying a vehicle, it's worth checking Uber's latest eligibility requirements for your city, as the services available as well as the accepted vehicle models and age limits can change over time.
You should also consider:
-
Upfront cost and value
A cheaper vehicle may be more affordable to buy and operate, while a more expensive model may qualify for higher-fare Uber services. Consider whether the additional earning potential is likely to justify the higher repayments and running costs.
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Reliability
The fewer mechanical issues your car has, the more time you can spend earning on the road. Look for a dependable model with reasonable servicing and maintenance costs.
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Fuel efficiency
Fuel can be one of your largest expenses, particularly if you drive full time. A fuel-efficient petrol car, hybrid or EV may reduce your running costs, although hybrids and EVs can cost more to purchase and insure.
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Passenger comfort
Consider legroom, climate control, cabin noise and ride quality. A comfortable vehicle can improve the passenger experience, particularly on longer trips.
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Size and luggage space
A sedan or small SUV may offer enough room for most passengers, while a larger vehicle can accommodate more luggage andcan qualify you for more Uber services, such as Uber XL.
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Insurance costs
Rideshare insurance can be more expensive than standard personal car insurance, so compare premiums before choosing a vehicle.
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Resale value
High kilometres and additional wear can reduce a rideshare vehicle's resale value, worth considering if you're financing the vehicle, particularly if you expect to sell or upgrade it in a few years.
