Today, Uber the ride-sharing service is available in 83 countries and more than 674 cities. Each month, this service provides more than 40 million rides with more than two billion rides annually.
If you have decided that you have a few extra hours during the week and want to make a bit of extra money driving for Uber, the first step is to ensure you have a reliable vehicle. After all, to drive for Uber, you have to meet a few requirements.
If you don’t, then now may be the time to consider loans for Uber drivers. The good news is, there are several loan option for Uber drivers, and knowing your options can help ensure you are approved for this funding.
Choosing Your Vehicle for Uber: Requirements You Must Meet
In most cases, newer vehicles will qualify to drive with UberX, which is now the most popular options for passengers. To qualify to drive for UberX, you need a vehicle in excellent working condition, with four doors and that is less than eight years old.
You also have to have windows that work as well as a working air conditioner. Once you have met these basic requirements, your vehicle has to pass an inspection and hold four to seven passengers.
In most cases, any small or medium-sized vehicle will be suitable, as long as there are four doors. As you can see, you will have several options when it comes to a car for Uber.
Understanding Car Loans for Uber Drivers
If you have plans to drive for Uber, the first step is going to be to purchase an Uber-worthy vehicle. Some tips that will help you get this loan can be found here.
Acquire a Loan and Use Uber to Pay it Off
Uber has many more passengers than drivers. If you have plans to get a car loan anyway, and you want to pay for it with additional income from driving it, then you can get a job with Uber. The car loan you get is based on your regular income, rather than on what you make from Uber.
What this means is that you can drive on the weekend or after work. Working for Uber is completely flexible and fits your current schedule.
Record How Much You Make with Uber
If you are trying to save for a deposit on a vehicle, Uber will allow you to drive a vehicle you don’t own. Also, while you are driving, you can prove you have a reliable, steady source of income that can be used for paying off a car loan.
If you are listed as being an insured driver, you can hire or borrow a car. After a few months of earning a regular income, you can get a loan based on what you make with Uber alone. Uber pays weekly, so you will know how much you can expect to make on a regular basis.
Use a Used Vehicle when Driving for Uber
You don’t have to have a brand-new vehicle to drive for Uber. In fact, as mentioned before, any vehicle under eight years old is fine. As a result, you can easily purchase a suitable vehicle for under $10,000.
It makes perfect sense for your personal vehicle to double as your Uber car. Doing this means if you ever decide not to drive for Uber, you still have a loan for a vehicle that you use.
Be Approved as an Uber Driver
You should be approved as a driver for Uber before you apply for a loan. That way, if you aren’t approved, you haven’t lost anything. The actual criteria you must meet will vary from one state to another.
Become Familiar with the Loan Options Available
There are several loan options to choose from when you are purchasing a car to use to drive for Uber:
- Personal loans
- Secured car loans
- Bad credit car loan
Secured Car Loans
This is the most popular type of vehicle loan and offers a lower interest rate because you use the vehicle as security for the loan.
You need to prove you have plenty of surplus income to make the repayments in a timely manner.
Personal loans provide you with access to a bigger lump sum that will let you purchase a vehicle for Uber. You can also use the money for any other need you may have.
Once you have secured the loan, you can repay it using the income you earn from driving for Uber.
Bad Credit Car Loan
If you have missed credit payments or a bankruptcy, you can still utilize a car loan to purchase a vehicle for Uber. You just have to prove that you are able to afford the payments owed.
After you are approved, just make sure to make all your payments on time. This should not be an issue if you are earning additional income driving for Uber. After a steady history of on-time payments, you can refinance with a regular car loan.
Getting a Loan as an Uber Driver
As you can see, there are several options for car loans for Uber drivers. If you are thinking about driving for this company, making sure you have the right type of vehicle is essential.
Also, once you are earning a steady income as an Uber driver, you can easily repay the loan you have taken out.
If you need more information about getting a loan or improving your finances, visit our blog. Here you will find a wide array of resources and other helpful financial information.