If you drive (or want to drive) for a rideshare platform like Uber or Lyft, a reliable vehicle is a necessity. But financing that car or SUV isn’t always straightforward. This difficulty is largely due to the fact that many lenders cater only to traditional employees with W-2 income.
With fluctuating pay, no employer-issued paycheck, and frequent vehicle use, rideshare drivers often fall outside the standard profile banks prefer. But that doesn’t mean auto financing isn’t possible for rideshare drivers; you just need to know where to look.
Why traditional lenders may say no
Most banks and credit unions rely on predictable income and low-risk vehicle use when deciding whether to approve auto financing. Rideshare drivers often don’t check those boxes.
Your income might be respectable, but it’s variable. Instead of a W-2, you receive 1099 income — and may not have years of tax returns to show. Unfortunately, lenders can struggle to assess your risk without a consistent pay history.
Financial institutions typically have concerns about vehicle wear and depreciation, too. Vehicles used for rideshare work rack up mileage quickly and are on the road for long hours. That can reduce its long-term value, which is troublesome for lenders. Insurance can complicate things further, especially if it doesn’t include a rideshare endorsement.
Tips to improve your approval odds
If you want to increase your chances of approval, regardless of the lender, it helps to be prepared. Use an app like QuickBooks Solopreneur to track and summarize your income over time. The more consistent your deposits look, the easier it is for lenders to understand your earning potential.
Bringing on a cosigner with a stable W-2 job can make you more attractive to lenders. And if you’re flexible on your vehicle choice, opting for a used car under $20,000 can reduce the financed amount, lessen lender scrutiny, and open more doors. In the meantime, building your credit through secured credit cards or timely bill payments can help you secure better terms in the future.
What are your auto financing options?
Some banks and credit unions do provide auto financing for rideshare drivers, particularly if your credit is strong and you can document consistent earnings. In those cases, you may qualify for low interest rates and predictable monthly payments that lead to full ownership of the vehicle.
Others turn to alternative forms of financing. Equipment loans or small business loans may use the car as collateral, so they tend to be more flexible with income requirements. Merchant cash advances (MCAs) are yet another option. These let you borrow against future rideshare earnings, with repayment based on actual income flow. While these options usually have higher rates (or costs), they may provide options when others don’t exist.
Additionally, a few automakers recognize the growing role of gig work in today’s economy. Brands like Subaru and Kia offer dedicated rideshare financing programs for drivers who meet minimum FICO scores and can show proof of their work with Uber or Lyft.
Some dealerships may also create tailored financing packages specifically for rideshare drivers. These may require little more than a driver’s license, insurance with a rideshare addendum, and earnings documentation from the rideshare platform itself.
Where Credit Acceptance comes in
Credit Acceptance is one of the few national lenders that routinely approve auto financing for Uber and Lyft drivers. We partner with over 15,000 dealers across the country that work with drivers who have nontraditional income, credit challenges, or no credit history at all.
Unlike many lenders, Credit Acceptance evaluates more than just your credit score. If you can show consistent rideshare earnings through bank statements, QuickBooks reporting, or tax filings, you may qualify.
Crucially, Credit Acceptance is OK with borrowers using their vehicle for commercial purposes, as long as the correct insurance is in place. That makes our dealer network one of the most accessible options for part-time and full-time rideshare drivers alike.
So, if traditional financial institutions and dealer/manufacturer programs aren’t an option for you, Credit Acceptance can get you pre-qualified online and connect you with nearby dealers who understand how rideshare work fits into the modern economy.