Buying a Car For Uber: Everything You Need to Know
Buying a Car For Uber: Everything You Need to Know
Posted on March 27, 2023
Are you thinking about starting a side hustle as an Uber driver, or are you currently working and want a new vehicle?
Our auto loans team are going to give you the tips needed to make the best possible decision.
Why Buying a Car for Uber Might be a Challenge
Auto loan providers make money by issuing loans, everyone understands that, but these loans come with risk.
There is always a risk that the person taking the loan is not going to pay it back, and the lender is out of money and has to go through a costly collections process with no guarantee of being able to recover their capital.
The only effective way to deal with this risk is to look at the credit score and income sources of the prospective borrower and compare that to other borrowers over time.
Since you want to get a loan to buy a vehicle for work, this will generate additional income, but the lender will need to know how much additional income you plan on generating while working with Uber. Click here to learn more about proof of income for car loans.
This can be a tricky calculation because different drivers earn different amounts based on variables like time, location, and even the type of vehicle they are using.
Documenting Your Income is Key
To address the legitimate concerns of the prospective lenders, if you are already working with Uber, either part-time or full-time, you need to show the details on how much income you have earned and that you have paid taxes on it.
If you aren’t sure how to substantiate that request, your income tax assessment and bank account statements should meet those requirements.
Keeping Track of Your Credit
Lenders are going to pay extra attention to your credit score, especially with the economy headed into an inflation-induced recession.
Your credit score indicates how much of a credit risk you pose; the higher the number, the less likely you will not keep your commitments.
To be on the safe side, your score should be over 660; if your score is significantly lower than that, you need to start taking proactive steps to raise your score.
One of the things that you can do is reduce the total amount of debt you are carrying, but it could be something as simple as an error inside your credit report that is causing you issues.
The only way to know for sure is by signing up for free access to your credit report with both TransUnion and Equifax; there is just a simple verification you need to complete.
Getting the Right Help
The most important thing you need is a professional who can help you navigate the Canadian automotive world and come out ahead.
To realize that goal, you must work with a dealership in your area.
The dealership has assisted other self-employed Canadians, just like you, and will ensure you get the best deal possible, but you must pick up the phone or visit them today and get things rolling.
If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.