Are you thinking about purchasing a new vehicle? If you are a driver for Uber or are thinking about becoming one, your income as a Uber driver could help you qualify for a better financing option. It would also make sense to choose your vehicle in function of what your needs as an Uber driver are. Here is how you can obtain affordable financing for the vehicle you will be using while driving for Uber.
Check Your Credit Score
The best way to obtain affordable car financing for a vehicle is to have a large down payment and to improve your credit score before applying for a loan. This is true whether you are shopping for a personal vehicle or will be using the car to drive for Uber. You can request a free credit score from Experian, Equifax and TransUnion to find out what your credit score is and to review your credit history. Look for mistakes in your credit history and have them fixed. If you can, pay off credit cards and loans with a small remaining balance and try increasing your payments on your accounts with larger balances. It might be worth it to wait a few months before applying for a car loan if there are a few things you can do to boost your credit score.
Gather Your Proof Of Income
Explaining that you have a secondary income as an Uber driver won’t do you any good unless you can prove that you have been earning a consistent income while driving for Uber. You can show proof of income for your regular job by bringing pay stubs and tax documents. You can prove that you have been earning money with Uber by keeping track of all the payments you receive. Your tax documents can also be used to show how much you have earned by Uber but you should keep screenshots of the payments made by Uber as well. Showing that you keep track of your mileage and that you keep a regular schedule will help lenders and car dealerships understand that you are serious about working as an Uber driver.
Choose An Affordable Vehicle Adapted To Your Needs
You can boost your earnings as an Uber driver by choosing a vehicle with good fuel-efficiency. A vehicle that is designed for city driving and that does not require a lot of maintenance would be a good option. You might want to consider getting an SUV or a luxury vehicle so you can qualify for the most expensive services offered by Uber but you need to be realistic about what you can afford. There might not be enough passengers requesting these more expensive rides in your area to justify investing in a more expensive vehicle. Unless you can afford the payments for an SUV or a luxury vehicle with the income you earn outside of Uber, a smaller economy vehicle will probably be a better choice. Get free advice from https://www.ridesharesolutions.com.au/ – or search for other similar providers.
Shop around for financing before applying for a loan. You should go over your budget to determine how much you can afford to spend on your car payments. Leasing a vehicle probably won’t be a good option since most leases will charge you more if you go over the mileage limit. Keep in mind that Uber does not provide insurance coverage for collision, which means you will have to buy this type of coverage out of pocket. Take the time to improve your credit score and to gather proofs of income before you start shopping around for a financing option for your new vehicle.