How Car Loans for Uber Drivers Work

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Rideshare services such as Uber or Lyft can certainly be lucrative ventures. But if you want to purchase a vehicle, you’ll need to secure a third-party loan.
You might love your daily vehicle, but there are some rigorous requirements to meet if you want to drive for Uber. So, you might find yourself needing to buy or lease a new ride. 
Buying a new car is a big financial commitment, and you’ll likely need to take out a loan to make it happen. Since Uber doesn’t offer financing, the car insurance comparison and broker app Jerry is breaking down what you need to know about car loans for Uber drivers.

Does Uber car finance exist?

In short, no
Until 2017, Uber offered a fairly comprehensive financing program called XChange, which helped drivers make steady payments on service-approved cars. However, the company found that drivers were unable to consistently meet monthly payments. Uber ended XChange after losing an average of $9,000 per car. 
With that option off the table, you’ll have to look elsewhere if you need a car loan for Uber.

How can I finance a car for Uber?

A few companies offer special rideshare deals that should make financing a car relatively simple—as long as you meet certain requirements. Here are the three most common options.

Carvana

Carvana rideshare loans are perhaps the easiest to attain. Here’s what you need to know about them:
  • No minimum credit score requirement 
  • APRs as low as 3.9% (though poor credit will net you a rate of closer to 30%)
  • Guaranteed annual income of at least $4,000 and no bankruptcies

Monevo Auto Loans

Monevo Auto Loans might also be worth looking into. They ask for a minimum credit score of just 500 and can rent you a car for up to 12 years. You have to be a legal permanent resident of the US to qualify. 

Car.Loan.Com 

Car.Loan.Com is another decent loan service, though perhaps the most difficult to attain. Here’s what you need to qualify:
  • Minimum credit score of 300
  • Full-time employment 
  • Proof of US citizenship
Rates from Car.Loan.Com vary, but if you’re employed and financially stable, this is the best option. 

Independent financing

You also have the option of securing a standard auto loan to purchase a new vehicle. Rates vary between credit unions, banks, and online lenders—but if you have a good credit score and reliable income, you’ll likely find reasonable rates.

What are the requirements for Uber cars?

It might be nice if you could just cruise around in your 2005 sedan, picking up passengers and making a good buck off Uber. But the service has a fair few requirements that your vehicle must meet to qualify. Here are the basics for your vehicle: 
  • Less than 15 years old
  • 4 doors
  • Room for 4 passengers or more
  • No obvious cosmetic damage or missing pieces
  • Good overall condition
  • Not a rebuilt, reconstructed, salvaged, or custom-built vehicle
  • Not a taxi (and no other commercial paint jobs)
If your car fails to meet even one of those requirements, you’ll have to invest in a new vehicle to drive for Uber. While that may be a pain, a lot of Uber drivers get a new car—especially if their daily ride is a gas-guzzling machine. 

Should I rent or buy a car for Uber?

Deciding whether to buy or rent a car is stressful at the best of times. Making that decision for a car that you can’t guarantee will be your daily ride for personal use is even more difficult. 
Here are some of the benefits of each:
Benefits of Buying an Uber carBenefits of renting an Uber car
Quality: If you have your eye on something nice and can afford it, purchasing something outright serves as a good investment—especially if you plan on having it for a while.Flexibility: Renting a car is more flexible in the short term. If rideshare is a side hustle short-term opportunity, renting is a better option.
Financials: Leasing a car might seem cheap over 12 months, but if you plan on driving for Uber for a long time, buying a car is simply more cost-effective. Buying now can save on the extra fees later.Maintenance: Renting means you aren’t responsible for the maintenance costs and other bumps and bruises that come with outright car ownership.

Can I get a short-term Uber rental? 

Yes, and a short-term rental might be the most cost-effective and flexible arrangement for an Uber driver. 
If you don’t plan on driving for multiple weeks in a row, Uber has a partnership with Hertz that offers weekly rentals and insurance. Packages start at roughly $200 per week with all fees and coverage included. If you plan on putting in a long week and don’t own a suitable car, renting from Hertz might be your best option. 
Other rental services like HyreCar and Maven Car also offer short-term rentals at competitive prices. Note that some might have fairly strict requirements about how many miles you can rack up—or even where you can drive. 
Key Takeaway You have to drive a lot with a short-term rental to make sure it’s profitable. 

How do I find the right insurance for my Uber?

Uber offers insurance for when you’re on the job, but you’ll need your own coverage while you’re in between rides or going about personal business. 
Getting the right insurance for your Uber car doesn’t have to be expensive—just use Jerry!
Jerry is the super app that helps you save time and money on all your car expenses, including insurance. Sign-up takes less than a minute and then Jerry will scour quotes from dozens of insurers—including top names like Progressive and Travelers—to find you the best deal.
Once you find the right coverage at the right price, Jerry will handle the paperwork and even help you cancel your old policy. The average user saves $879 per year on their insurance!
“Quick and easy! Jerry saved me $100 a month! They ask basic questions and show insurance companies offering the policy coverage you want. Select which policy and they will do the rest!” —Maria K.

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