A Guide to Car Loans for Uber Drivers

Written by Rob Shapiro and 1 other
Nov 20, 2024

An Uber Driver can get a car loan, but the question is whether it’s a good idea. Keep reading to learn more!

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You’re minutes away from saving on your car loan.

Most lenders will approve an Uber Driver for a car loan even if they plan to pay off their loan with their Uber salary. There shouldn’t be too many obstacles or surprises, especially if you have a good credit score and a more secure income to supplement what you earn from Uber. You can also opt for a co-signer.

There are several requirements anyone who wants to be an Uber driver has to meet. The most important, though, is having a car that meets a certain standard. Lenders typically view Uber drivers the same as any applicant—despite understanding the pitfalls of the job, such as low salary and high car usage.

To help Uber drivers better understand the process for being approved for a car loan, the trusted super app for drivers, Jerry, has created this guide of what it takes to get a car loan for Uber drivers.


Learn more: Does my car insurance cover me if I drive Uber or Lyft?


YOU’RE MINUTES AWAY FROM SAVING ON YOUR CAR LOAN

How do car loans work?

Cars are expensive, so a car loan is a popular way for most people to pay off the cost of their vehicle over an amount of time determined by the loan agreement. The lender makes money off the interest the borrower pays with every installment. Essentially, the borrower pays interest in addition to the principal loan.

A car loan is a secured loan, meaning the car you purchase with the loan acts as collateral. If you fail to repay the loan, your car could have a lien placed on it or even be repossessed.

Lenders look at several aspects of a borrower’s ability to repay the loan. While the process can be secretive, an applicant’s credit score could determine if they’re approved or not. A good credit score is typically between 725 and 759, and you’ll have a better chance of getting a loan with a reasonable interest rate if your score falls in this range.

Keep in mind that the application process does vary per lender, whether it’s a bank or a credit union.

Key TakeawayA car loan is a secured loan where the purchased car is used as collateral. Anyone, including an Uber driver, can be approved if they have a good credit score (725 or higher) and meet the lender’s other requirements.

Consider getting a co-signer

If your application for a car loan is rejected, you can get someone to co-sign your loan. This will satisfy most lenders that someone will repay the loan if you are unable to.

A good co-signer should have the following:

  • A credit score that is viewed as good or better
  • Sufficient income to qualify as a co-signer
  • The appropriate debt-to-income ratio
  • Good standing with the financial institution if they’re a previous or existing customer
Key TakeawayHaving the right co-signer is an efficient way to get approved for a loan. Consider it to be a good option if your application is rejected.

Where to apply for a car loan

The two most reputable places to apply for a car loan are banks or credit unions. You do not need to only apply at an institution where you are already a customer. It’s perfectly reasonable—and always a good idea—to shop around. This will increase your chances of getting approved and finding the best loan terms.

Banks are often the most popular choice, but if you’re looking for a smaller loan for an inexpensive or used car, you might want to make an appointment with your local credit union.

Will lenders give car loans for Uber drivers

The quick answer to this question is yes. There is nothing to say that a financial institution will turn away an applicant because they will be using the loan to buy a car to be an Uber driver.

Here is what a financial institution reviews concerning applicants for a car loan:

  • Income
  • Credit score
  • Proof of identity and residence
  • Debt-to-income ratio
  • Employment
Key TakeawayIf you meet the requirements outlined by the financial institution, including credit score, income, and debt-to-income ratio, then it shouldn’t matter if the applicant is an Uber driver.

Advantages of a car loan for Uber drivers

Uber drivers need to have a safe, pleasant vehicle. They also need one that can withstand heavy driving and whatever the road and weather throw its way.

Unless you have a hefty down payment or can fully pay out of pocket, a car loan can let you buy a better or newer car.

The benefits of a car loan for Uber drivers include:

  • You can buy a more expensive car than your finances would allow.
  • You can buy a newer car model with features that will appeal to passengers.
  • By getting pre-approved, you can shop with more confidence

What makes it hard to get a car loan for Uber drivers

The main obstacle an Uber driver might face in getting a car loan is if Uber is their only source of income. Because of the fees and other costs involved, Uber is often viewed as being better as a side hustle. This doesn’t mean it can’t be your primary source of income, but you will have to prove that you earn enough to repay the loan per the loan agreement.

If you’re a new Uber driver, remember that Uber takes a cut of the driver’s income for the services they provide. This means that you’ll pay a percentage to Uber for every ride you give.

There is a reason that many Uber drivers have a second job, like working for a cab company or another ride-sharing program.

Also, the laws around Uber and ride-sharing programs vary per state. Even if you live in a state that allows Uber to operate, this can change at any time. Uber tends

How to get affordable car insurance

Every Uber driver needs to protect their investment with the best car insurance. You should consider using Jerry, the #1 rated insurance app around.

Jerry makes buying car insurance straightforward. Just download the app, answer some basic questions, and in 45 seconds, Jerry will provide you with customized quotes from top insurance companies. Just choose the one that best fits your driving needs and your budget, and you’re good to go!

Jerry will never spam you with calls or sell your information, and you could save an average of over $800 on your car insurance!

YOU’RE MINUTES AWAY FROM SAVING ON YOUR CAR LOAN

FAQ

  • Can I get a car loan as an Uber driver?
  • Should an Uber driver get a car loan?
MEET OUR EXPERTS
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Rob Shapiro

Rob Shapiro is an insurance writer with over a decade of experience in publishing and writing for both print and visual media. Rob specializes in a broad range of car ownership and insurance-related topics in pursuit of his mission to bring car owners the content they need to save money, master their repair and maintenance skills, and choose the best car insurance for their driving style. As a member of Jerry’s team, Rob has authored over 600 articles on topics ranging from car repair to CDL requirements. Prior to joining Jerry, Rob produced scripts, manuscripts, websites, marketing materials, bios, proposals, articles, and more.

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Jessica Barrett

Jessica Barrett is a senior insurance writer and editor with 10 years of experience in the automotive and travel industries. A specialist in car insurance, car loans, and car ownership, Jessica’s mission is to create comprehensive content that car owners can use to manage their costs and improve their lives. As a managing editor for a team of writers and insurance specialists, Jessica has edited over 2,000 articles for Jerry on topics ranging from local insurance shopping tips to refinancing car loans with bad credit. Before joining Jerry as a senior content editor in 2021, Jessica created visual content for clients such as Expedia, Vivid Seats, Budget Direct Car Insurance, Angie’s List, and HomeAdvisor. Her content was published in Business Insider, Forbes, Apartment Therapy, and the BBC.

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Editorial Note: This article was written by a paid member of Jerry’s editorial team. Statements in this article represent the author’s personal opinions and do not constitute advice or recommendations. You should consult with an insurance professional about your specific circumstances and needs before making any insurance decisions.