Everything about Uber car financing
In South Africa, working as an Uber Driver is a decent side hustle or full-time gig if you need extra cash. However, a deal with Uber requires you to have your own car. In cases where you don’t have a car or your car needs an upgrade, and you don’t have the funds, then applying for Uber car financing is one viable option.
If you’re interested in Uber car financing for South Africans, it’s good to know all the available options. This article covers the important parts so you can make the best decision for yourself.
Advantages of driving for Uber
- You can pick your own working hours;
- The freedom to work with no supervision;
- Surge pricing can help you make more money especially around holidays;
- Uber driving can become your full-time job if you need decent work; and
- You can also join the Uber Eats program to increase your income.
Uber car financing in South Africa: What are the options?
To get a good car to drive for Uber, lenders in South Africa usually offer the following options:
Secured car loans for Uber drivers
With this option, you can buy a new or used car from a private seller or car dealership. You can also choose between an instalment sales agreement and a financial lease. An instalment sales agreement allows you to drive the car and pay for it in instalments. You’ll only own the car after you have paid back the loan in full.
On the other hand, a financial lease allows you to rent the car for an agreed period. After the lease ends, you can buy the car, return it, or renew the lease. With secured car loans for Uber Drivers, the car is used as security. If you fail to make the car loan payments, then the lender takes the car back.
Personal loans for Uber drivers
Unsecured personal loans for Uber drivers have higher interest rates because of the high risk the lender faces. However, when you use an unsecured personal loan to get a cash advance and buy your Uber car, ownership of the vehicle is immediately yours. You pay back the loan in monthly instalments, but if you fail to pay back the loan, there is no risk of losing the car.
Bad credit car loans for Uber drivers
You can still apply for Uber finance if you have bad credit, or a low credit score. Usually, this may result in a rejected application, but if you choose a high interest loan, some lenders can accept your application. If you make your car loan payments on time, you can improve your credit score enough to refinance the high interest loan and to choose a loan with a lower interest rate.
Other loan options
These include dealership finance, using the cash from a home equity loan, mortgage, or a credit card. While choosing any of these options, it is better to avoid high interest rates that make it difficult to finish your car payments.
What are the requirements for Uber car financing in South Africa?
When you apply for Uber financing in South Africa, lenders typically have the following general requirements:
- Valid South African ID;
- Valid South African or International driving licence;
- South African Bank account where your income goes;
- Proof of residence; and
- A good credit score.
While there are other requirements for Uber drivers, depending on the model, the following are considered must-haves:
- Model year must be 2013 or newer;
- 4-door minivan or sedan;
- The car must be in good condition with no damage to its appearance;
- The car must not be a hatchback;
- Commercial vehicle insurance;
- Operating licence obtained from the department of transport;
- Vehicle certificate of registration; and
- No salvaged or rebuilt vehicles.
Use the Uber vehicle finance calculator and apply for financing
Our easy-to-use Uber car loan calculator helps you to compare a variety of loans. If you input your loan amount and loan term and then click “Calculate Repayment” you’ll be able to see the estimated monthly payment for that particular loan. While comparing loans and looking for an affordable loan, also consider the following factors:
- Interest rate: A lower rate saves you money. You also need to choose between a fixed or variable interest rate.
- Repayment plan: Find out how long you have to pay back the loan and how much you have to pay back every month. Also, check if a deposit or balloon payment is required.
- Fees and other charges: These add up to the total cost of your loan. Therefore, a loan with lower charges is better for you, overall.
To apply for a loan through CompareLoans.co.za simply scroll up to our comparison tables. Next, click on the “Go to Site” button for your chosen lender. This takes you to their website where you can fill an online application form.
Frequently asked questions about Uber car loans in South Africa
Can I get financing directly from Uber?
No. While Uber used to offer auto loans for its drivers, that program has since been closed.
How do I join Uber after getting a car?
You can sign up online using your PC or smartphone. You’ll need to provide your email address and upload the required documents.
Can I make enough money to cover my monthly payments while driving for Uber?
Once you have been approved and you start working regular hours, it is possible to make enough money to cover your loan payments.
Should I rent or buy a car if I want to drive for Uber?
It depends on your situation. Renting a car for Uber driving is a good option if you can’t afford to buy a car or if you want to avoid maintenance costs. On the other hand, buying a car is a long-term commitment that can help you save money as time goes on.
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