How to finance a car for Uber in Toronto, Ontario?
Posted on July 12, 2017
If you live in Markham, Richmond Hill, Barrie, Vaughan, Oakville, Burlington or especially if you're in Toronto, you know all about Uber, a popular alternative to taxis, hitchhiking or the bus. Maybe you’ve even thought about becoming an Uber driver yourself. After all, if you love to drive and you love the idea of flexible hours even more, it seems like a great fit. Ideally, you already own a car when you fill out your Uber driver application form. But even without immediate access to a car, you still have a shot. To drive people from A to B for Uber, both you and your car must meet certain standards.
-Must be 10 years old or newer (model year 2007)
-Must be a four-door car, truck, or minivan. Manual transmission is fine
-Must pass a vehicle inspection and have seatbelts for 4 passengers
-Driver’s full name must be on the insurance for the vehicle
-Driver’s name does NOT have to be on vehicle registration
-Driver must pass a background check
Need a car to drive for Uber or Lyft? Should you buy, rent, or lease?
It seems backward: apply first, then get the car. But better to get the qualifying process underway. Then, if for some reason you don’t make the grade to drive for Uber, you won’t be stuck dealing with a hefty car payment. Don't rush to buy a car purely to drive for Uber or Lyft. Not right away. That’s a pretty major investment that might not pay off if your city or town isn’t busy enough with ride requests. In Toronto, the demand is likely there even with that many more Uber cars on the road. But after expenses, most drivers can expect to earn from $10–$25/hour. You won't exactly get rich quick, in other words. Avoid splurging on a more expensive dream car till you're sure you can break even or see a profit. Test out your local ride request markets before committing to a purchase. Most Uber-watchers feel that using your own car rather than renting or leasing direct from Uber is the best approach. Even if you have a monthly car payment, it's probably going to be lower than leasing from Uber Xchange, for example, which costs in the range of $600 per month.
Did you know that Uber has a tiered ranking system for ride requests based on what type and size of vehicle drivers offer? Uber X cars are the basic 4-passenger vehicles. In the Uber XL category, cars have to be able to transport 5-6 passengers. Drivers often opt for Dodge Durangos, Caravans, and Jeep Cherokee quite often earning higher fares for added size, swag and comfort.
-Use the car you already own
-Buy a car, often a used hybrid or compact for fuel efficiency
-Lease a car through Uber Xchange
-Rent a car for Uber use through Enterprise or another rental car program
-Rent a car through a peer-to-peer or car-share service
The advantage to buying or leasing a newer car for Uber use is that the company can't disqualify you for having a car that's old before it's time. If you've checked it out, driven a few shifts and decided that you love this income stream and could make it work for you, click here to learn more about pre-approved financing and leasing at Ontario Chrysler.