Financing a Car For Uber in 2021 | Finder Canada

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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.

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 Loan Term Min. Credit Score Requirements
Car Loans Canada
$7,500
3.99% to 29.95%
12-84 months
300
Min. income of $2,000 /month, 3+ months employed
Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
CarsFast Car Loans
$500
4.90% to 29.90%
12-96 months
300
Min. income of $1,800 /month, 3+ months employed
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
Loans Canada Car Loans
$500
0% to 29.99%
3-96 months
300
Min. income of $1,800 /month, 3+ months employed
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
Canadian Auto News
$7,500
4.49% to 29.90%
12-84 months
300
Min. income of $2,000 /month, 3+ months employed
Answer a few simple questions to get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
Canada Auto Finance
$500
4.90%-29.95%
3-96 months
300
Min. income of $1,500 /month, 3+ months employed
Canada Auto Finance is a broker that connects borrowers with partnered local lenders. Financing for a new or used car is available for borrowers with bad credit, no credit, CERB, EI or bankruptcy.
Carloans411 Car Loans
$500
1.90% to 19.99%
Up to 72 months
300
Min. income of $1,600 /month, 3+ months employed
Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $50,000. Check eligibility for this loan through LoanConnect.
LoanConnect Car Loans
$500
9.90% to 46.96%
3-120 months
550
No min. income requirement
Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.
Fairstone Secured Personal Loan
$5,000
19.99% to 23.99%
36-120 months
560
Established credit history and own your home
Fairstone offers secured personal loans up to $35,000.
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Compare up to 4 providers

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.

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.

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.

Frequently asked questions

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