Uber Car Financing: How to Get a Car for Rideshare Driving

Looking for Uber car financing? It’s easier than ever before to finance a car to drive for Uber, the most popular ridesharing app. 

If you don’t own a car yet, don’t worry. You may be able to rent or purchase one through financing options and utilize Uber car financing. 

However, as is the case with most financing products, every option has pros and cons.

Is it worth it? Likely yes, as Uber drivers can make a little over $20 an hour in the US. 

This article will provide you with all the information you need to finance a car to drive for Uber. 

Can You Finance a Car to Drive for Uber?

You can finance a car specifically to drive for Uber. Many drivers opt for car financing to meet Uber’s vehicle requirements, often demanding newer, well-maintained vehicles. 

Not everyone owns a car, and even if they do, it might not be suitable for Uber drivers. For instance, driving a truck for Uber wouldn’t be so economical or convenient. That’s why they offer Uber car financing. 

Financing allows you to spread the cost of purchasing a car over time, making it easier to start as a rideshare driver. 

In comparison, buying with cash can be quite a significant upfront investment, even if you’re buying a used car.

It’s essential to understand the financing options available and ensure you choose one that aligns with your financial situation and long-term goals.

If everything goes right, you may just be able to pay off the car with the income you make driving it for Uber. That’s a viable way to own as an asset. 

Uber Car Financing Options

There are multiple options when it comes to Uber car financing. Let’s look at each, along with its pros and cons. 

1. Traditional Car Finance

The most straightforward way to finance a vehicle to drive for Uber is to finance it with a financial institution. 

This option requires a down payment, so you must have some cash to pay. You can pay the rest in monthly payments over three to five years. 

However, there’s a caveat to this route. In some cases, you may be unable to avail of this option. 

The thing is, many banks don’t finance Uber vehicles. They may deny your application if they find out that you plan to use it for Uber car financing. 

Secondly, this option requires a good credit score and a steady income. You may not qualify or get very high interest rates if you have a low credit score. This applies to both new and used cars. 

Pros

• Lots of car choices
• Predictable monthly payments
• Low interest rates (if you have a high credit score)
• Leads to complete ownership

Cons

• Requires credit check
• Requires down payment
• Responsibility for insurance and maintenance

 

1. Rent or Buy Through Uber Vehicle Marketplace

Uber also offers car financing options through third parties on its Vehicle Marketplace. These partners mainly provide rental options, but you may also be able to purchase one. 

If you go with the rent-based financing option, you can rent a car that is available in your city. Cars can be rented by the hour, day, or week. 

With this option, insurance and maintenance is usually included. So, it’s not the responsibility of the driver. 

Also, as these programs are exclusively for Uber drivers, the cars meet Uber’s safety and comfort requirements. You can find electric vehicles (EVs), too, with some of the partners, which may come with incentives. 

To finance the car through Uber Vehicle Marketplace, you must first sign up as a driver and be an active driver. 

The rates vary by the partner platform and car type and make. Also, the partner will set all the terms and conditions, not Uber. 

Pros

• User-friendly vehicles
• Flexible renting options
• No maintenance if you rent

Cons

• Rates can be high
• No ownership if you rent

1. Personal Loan

If you don’t have the upfront payment to pay for traditional car financing, you can purchase a car to drive for Uber with a personal loan. 

Banks and credit unions offer personal loans that range from a few thousand to tens of thousands of dollars. 

These loans do require a credit check, and the rate you get depends on your credit score, history, and income for Uber car financing. 

Personal loans tend to have high interest rates, which means this is the most expensive option to finance a car. 

Repayment terms typically range from one to five years. 

Pros

• Easy to apply
• Can be used to buy a car with cash

Cons

• Very high interest rates
• Minimum credit score requirements in many cases

 

1. Merchant Cash Advance

If you’re a gig economy worker, you may want to explore the option of merchant cash advance (MCA). 

It’s a quick and easy solution for independent contractors like folks who drive Uber, and need Uber car financing. This funding option provides cash upfront for Uber car financing. 

It differs from a loan in that there are no interest or fixed monthly payments. 

The repayment is made as a small percentage of the future income. So, you can pay back the advance as you make money driving for Uber. 

You can use the advance to buy a suitable car, according to Uber’s requirements. 

The best part is that you don’t need a credit score or proof of steady income to qualify for an MCA. 

Fundo, an MCA designed exclusively for gig workers, offers an advance of up to $10,000. 

The approval is quick, and funds can be deposited in your account on the same day or the very next business day. 

It’s an effective option to purchase a decent, used vehicle to use for your ridesharing business as an Uber driver. You own the vehicle from the get-go. 

Pros

• Easy, quick access to cash
• No minimum credit score requirement (no credit checks)
• Flexible repayment according to earnings

Cons

• Not ideal for buying a new vehicle. 
• Insurance and maintenance must also be paid

Things to Keep in Mind

Before committing to a financing option, consider the following:

• Uber’s Vehicle Requirements: Check the car requirements from Uber specific to their product (for example, UberX, UberComfort, etc.). Ensure that the car you plan to finance meets Uber’s standards. These can vary by location, so check accordingly. 
• Earnings vs. Expenses: Ensure your earnings from Uber driving will cover your financing costs, including loan repayments, insurance, fuel, and maintenance.
• Contract Terms: Carefully read the terms and conditions of any financing agreement to avoid unexpected costs or restrictions. 
• Long-Term Viability: Consider whether your financing choice aligns with your long-term goals, especially if you only plan to drive for Uber temporarily.
• Renting vs. Ownership: See if renting is a more suitable option for you. For example, you only plan to drive for Uber for a few months or a few days per week as a side thing. Otherwise, go with an option that ultimately gives you ownership of the vehicle. 

FAQs

Does Uber give you a vehicle?

Uber doesn’t offer vehicles for rideshare drivers. However, it offers a marketplace with car purchase and financing partners, where drivers can buy a car to drive for Uber if they don’t have one.

What credit score do I need to finance a car for Uber driving? 

The credit score requirements vary depending on the financing option. 

Traditional car loans typically require a good credit score (650 or higher), while personal loans or merchant cash advances may have more flexible requirements. 

It’s best to check with the lender for specific criteria. Besides your credit score, they may also look at your income in the past year or so. 

How does Uber’s Vehicle Marketplace compare to traditional financing? 

Uber’s Vehicle Marketplace offers flexible renting and leasing options, which can benefit drivers who want to avoid long-term commitments. 

However, traditional financing may be more cost-effective in the long run, especially for drivers with good credit who plan to drive full-time.

Ready to kickstart your rideshare journey?

With Fundo, self-employed rideshare drivers can access a Merchant Cash Advance in as little as 24 hours. Get the funds you need to finance your car and grow your business today!