Car Loans for Uber DriversCar loans for Uber drivers are becoming increasingly common in the so-called gig economy. If you’re looking to make money, becoming an Uber driver is a flexible option. You can drive as little or as often as you like, whatever suits your lifestyle. Lots of drivers of all ages work as Uber drivers in Australia to earn some or all of their income.
Read on to find out everything you need to know about car loans for Uber drivers in Australia, including answers to FAQs.
Can Uber drivers get car loans?
Yes. But only a few lenders allow it.
But before you apply for a loan to buy a car to use as an Uber driver, check Uber’s minimum vehicle requirements in your city for the type of driver you want to be. You obviously need to make sure the car you want to buy will be approved by Uber for you to use as one of their drivers.
Uber driver car requirements in Australia
There are six main types of Uber drivers in Australia, and each has slightly different minimum vehicle requirements.
3) Uber Assist
4) Uber Eats
5) Uber Comfort
6) Uber Premier
Let’s look at the vehicle requirements for each type of driver in turn.
UberX vehicles must meet all of the following requirements to be approved for use:
- ANCAP 5-star safety rated.
- less than 10 years old.
- 4 door.
- have the ability to seat 4 – 7 passengers, plus you as the driver.
- not previously or currently used as taxis, government or driving school vehicles.
- never previously written off.
- compulsory third party insurance for you as the driver.
- have working windows and air conditioning.
- no cosmetic damage.
- good working condition and ability to pass a vehicle inspection.
UberXL vehicles are larger vehicles than UberX vehicles, such as SUVs and vans. They need to have the capacity to seat 6 or 7 passengers. Other than that passenger capacity requirement, all other UberXL vehicle requirements are the same as those for UberX vehicles.
Uber Assist vehicles are for passengers with a disability or the elderly who require additional assistance to enter and exit. They need to be able to accommodate folding wheelchairs, collapsible scooters and walkers. Other than that requirement, all other
As a driver, you also need to meet the following requirements to be eligible to be an Uber Assist driver:
- complete a free training course so that you are aware of the needs of Uber Assist passengers when they are entering, exiting and travelling in your vehicle.
- have already completed over 100 trips as an Uber driver.
- have a minimum 4.7 rating as a driver.
Uber Eats has the least stringent vehicle requirements of any of the four types of Uber drivers. All you need is a vehicle that is newer than a 1990 model that is registered and has compulsory third party insurance.
Uber Comfort vehicles need to be no older than 7 years. Other than that age requirement, the vehicle requirements are the same as UberX vehicles.
As a driver, you also must have completed over 500 Uber trips and have a minimum rating of 4.85 to be eligible to be an Uber Comfort driver.
Uber Premier vehicles are specific luxury models that are less than 6 years old and designed for 4 passengers. The other requirements are the same as for UberX vehicles.
As a driver, you also must have completed over 20 Uber trips and have a minimum rating of 4.6 to be eligible to be an Uber Premier driver.
Does Uber help you buy a car?
Uber currently offers car financing options in Australia through the Uber Marketplace through a limited range of partner lenders. However, there is currently a very limited range of partner lenders available in a limited number of Australian cities.
The bottom line is that you’ll probably be able to find a better deal with the larger range of lenders available in the wider Australian car loan market. You should speak with a car finance broker to get a wider range of options.
How do I finance a car through Uber?
Uber has 3 main car financing options through its limited range of partners:
2) renting with an option to buy
3) a standard car loan.
What are my other car finance options?
If you talk to a car finance broker, you’ll find that you have additional car financing options from the broader Australian car loan market. They include loans from banks, credit unions, finance companies and other lenders.
Most car loans in Australia are secured loans. Secured loans are low interest car finance because the vehicle is used as security for the loan. This means that the lender is legally able to repossess and sell it if you don’t make your repayments. Obviously, the best way to avoid that is to make all your car loan repayments on time!
Once you’ve fully repaid your loan, a lender can no longer repossess your car for any reason.
Unsecured loans are the opposite of secured loans. They don’t require you to put up your car or any other asset as security. This means that unsecured loans are higher risk for lenders, so they charge higher interest rates.
You can read more about both secured and unsecured car loans here.
Other Uber car loan FAQs
How many people buy a car on finance in Australia?
According to the latest statistics, 90% of all car sales in Australia involve finance. Only 39% of those buyers get their finance through car dealers. The majority (61%) access finance from other sources like banks or other financial institutions.
How does a lender register their interest in your car for a secured loan?
They register their interest on the Personal Property Securities Register (PPSR).
What will my car loan repayments be?
This depends on a range of factors:
- how much you borrow,
- the interest rate,
- any other lender fees
- the term of your loan, and
- how often you make your repayments (most car loans have monthly repayments, but you can arrange fortnightly or weekly repayments).
How can I lower my car loan repayments?
There are four main ways to lower your car loan repayments:
1) borrow less (for example, by saving a larger deposit or buying a less expensive car).
2) find a loan with a low interest rate and low or no fees (a good car finance broker can help you to do this).
3) take out your loan over a longer term.
4) take out a loan with a balloon payment at the end. A balloon payment is a larger single repayment at the end of the loan. You can read more about balloon payments here.
How long is a car loan for?
Car loan terms in Australia typically range from 1 to 7 years. 5 years is the most common loan term. If you borrow the same amount over a longer term, your repayments will be lower (but you’ll also pay more interest).
On the flip side, your repayments will be higher if you borrow the same amount over a shorter term, but you’ll pay less interest.
What is a comparison rate on a car loan?
The comparison rate includes the loan interest rate and any ongoing lender fees. As the name suggests, you should always use the comparison rate when comparing different loans.
You can read more about comparison rates here.
Can you get a car loan with bad credit?
Yes, it’s possible but it can be more difficult. You should talk to a good car finance broker for advice.
Good car finance brokers know the different lending criteria of different lenders. They’ll be able to let you know which lenders will be most likely to approve your car loan application so that you don’t waste your time by applying to lenders that won’t. If you do get any car loan applications rejected, this will further damage your credit score. You can find out more about how to get a car loan with bad credit here.
How we can help
If you’re looking to buy a new or used car to use as an Uber vehicle and you need finance, talk to one of our licensed and experienced brokers at Auto Car Loans.
We’ll save you time and hassle by helping you find you a great deal from our panel of over 50 Australian lenders. We’ll also help you with your application so you can get it approved quickly.
Whatever you do, don’t use Uber Marketplace or let yourself get talked into finance arranged by a car dealer. If you do, you’ll probably end up paying more for your car finance than you should.
Simply call 1300 301 051 during business hours to speak with one of our expert car finance brokers instead. We’ll take the time to understand your situation so that we can provide you with the right advice. We’d also be happy to answer any questions you have.
DISCLAIMER : The thoughts and opinions conveyed on this website are those of the authors only and are of a general nature. This does not constitute financial or general advice to you from Auto Loans Group. You should seek your own independent advice from a professional which is specific to your circumstances before considering any of the items referred to in this article, including finance, insurance, and car buying.