Financing a car for Uber

Buying a car may be the best long-term option, but it's a big commitment.

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Driving for Uber is one way to supplement your income from another job — or as a main job if you like to work on your own schedule. While the company recently ended its financing and leasing programs, you still have other rental and financing options to choose from.

LoanConnect Car Loan

  • Min. Loan Amount: $500
  • Max. Loan Amount: $50,000
  • Interest Rate: 4.6% to 46.96%
  • Loan Term: 1-5 years
  • Pre-approval in as quick as 60 seconds
  • Quick and simple financing
  • Safe and secure loans
  • All provinces

LoanConnect Car Loan

Get access to 25+ lenders through Loan Connect's brokerage, and receive pre-approval in as fast as 5 minutes, and financing up to $50,000 in as little as 24 hours from the time of your application.

  • Min. Loan Amount: $500
  • Max. Loan Amount: $50,000
  • Interest Rate: 4.6% to 46.96%
  • Loan Term: 1-5 years
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Does Uber offer financing or leasing?

No. Uber ended its financing program in 2017, when it was reported that many drivers struggled to earn enough money from driving to pay for the high monthly payments and outstanding interest rates from their car loans.

Similarly, Uber sold its leasing program Xchange to Fair in 2018 after reportedly losing $9,000 per car on average. While Uber does mention on its website a fleet program that involves driving a car that someone else owns, there isn’t any further information on how this works.

How can I get a car to drive for Uber?

If you don’t currently have a car and need one for personal use as well as for your side hustle, you may want to consider buying or leasing your own car. The cost of buying a car would vary based on if you buy new or used, while leasing would likely run you at least $200 per month with an extra amount due at signing.

While buying or leasing independently may cost you more up front, it gives you freedoms you wouldn’t have if you were renting. These include the option to customize the car to your liking and not having to pay any extra fees for any mess that may occur.

Can I rent a car for Uber?

Yes, but you’ll need to rent from one of Uber’s partners. Options include hourly, daily, weekly and monthly rentals.

Compare your car loan options to drive for Uber

Name Product Min. Loan Amount Interest Rate Fees Loan Term Min. Credit Score
LoanConnect Car Loan
$500
4.6% to 46.96%
Varies by lender, loan type and province
1-5 years
420
Get access to 25+ lenders through Loan Connect's brokerage, and receive pre-approval in as fast as 5 minutes, and financing up to $50,000 in as little as 24 hours from the time of your application.
Auto Arriba Car Loan
$3,500
8.99% to 29.50%
Contract fee of $499.00
1-7 years
N/A
Auto Arriba offers car loans starting at $3,500 up to $50,000, with as little as a 30 minute loan turnaround time.
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Compare up to 4 providers

Name Product Min. Loan Amount Interest Rate Fees Loan Term Min. Credit Score
Ferratum Personal Loan
$2,000
18.9% - 54.9%
None
1- 5 years
N/A
Ferratum provides Canadians in need of quick cash with loans for car purchases from $2,000 to $10,000 for 1 year to 5 years.
Fairstone Personal Loan (Unsecured)
$500
26.99% - 39.99%. Varies by loan type and province
None
6 months - 5 years
N/A
Fairstone offers unsecured personal loans up to $20,000
LendingMate Personal Loan
$2,000
43% (British Columbia and Ontario) and 34.9% (Quebec)
None
1-5 years
N/A
LendingMate offers loans to Canadians with poor credit with no credit checks. Guarantor required for application.
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Compare up to 4 providers

*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

What are Uber’s vehicle requirements?

While it’s up to you to decide which type of car to drive for Uber, there are a few requirements it needs to meet and these vary based on where you live. Generally speaking your vehicle needs to be:

  • Less than 10 years old (or newer depending on the city you’re in)
  • 4 doors
  • Carry at least four passengers
  • Good condition with no missing pieces or cosmetic damage
  • Not salvaged, reconstructed or rebuilt
  • No commercial branding or taxi paint jobs
  • Listed as an insured driver if using a vehicle you don’t own

Should I buy or rent a car?

Whether you should rent a car or buy or lease your own car depends on your personal situation, including your budget and goals.

Consider renting a car to drive for Uber if…

  • You don’t want a long-term commitment.
  • You don’t want to be responsible for maintenance.
  • You can’t afford to buy or lease a car just yet.

Consider financing or leasing a car to drive for Uber if…

  • You want a long-term commitment with one car.
  • You want to use the car for personal use as well.
  • You can afford it, as it saves you more money in the long run.

Representative example: Sergei buys a car to drive for Uber

Sergei lives in Ontario and recently got a side job working as an Uber driver in a fairly affluent region. He wants to get a car for both work and personal use. Knowing his clientele will prefer a luxury vehicle, Sergei decides to buy a 2020 BMW 330I XDRIVE Sedan for $53,000.00 from a dealership. After putting a 15% down payment of $7,950.00 on the car, he heads to his local bank where he applies for an auto loan to cover the remaining cost.

Because Sergei has a solid credit history, he is approved for loan to cover the outstanding amount plus 13% HST on the purchase price. Along with the cost of his loan, he also pays approximately $180.00 to register his vehicle with the province of Ontario – this includes the cost of license plates, a sticker and a vehicle permit.

Cost of new car$45,050.00 ($53,000.00 less $7,950.00 down payment)
Loan typeAuto loan (term loan)
Loan amount$51,940.00
Interest rate (APR)5.90%
Loan term7 years
Additional feesOrigination fee of 3.00% ($1,527.20)
Payment $756.28 monthly or $348.68 biweekly
Total loan cost$63,527.52 with monthly payments or $63,459.76 with biweekly payments

Had Sergei chosen to rent a car through one of Uber’s drivesharing partner companies instead, he could’ve ended up paying around $5-$10 per hour (plus tax) to rent the same type of vehicle. Assuming a rental cost of $6.50/hour and a 15-hour work week, this would’ve cost just over $5,000/year plus tax.

Bear in mind, though, that this would’ve only been the cost of renting a vehicle for Sergei to drive for Uber. He still would have had to find (and pay for) another means of transportation to use when not driving for Uber.

*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.

I got a car to drive for Uber. What’s next?

If you have a car that fulfills all of Uber’s vehicle requirements, you’re ready to sign up. Either download Uber’s mobile app or go to its website to begin the process. You’ll also need to upload a photo of your driver’s license, vehicle insurance card and vehicle registration for the background check.

What documents will I need to apply?

Uber requires new drivers to provide the following documents:

  • A valid driver’s license issued at least one year ago
  • Proof of residency
  • Proof of insurance — only if you’re driving your own car

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

Bottom line

Driving for Uber may be able to help you earn some extra cash on the side. But you’ll need to use your own car or rent one through its partners to qualify.

You can learn more about your car financing options here.

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