# No bank financing for Uber drivers?



## Med_driver88

Hey guys! I'm new here, but I've been driving for uber for about a year. Sorry if this has been discussed in the past I couldn't find anything that fit my particular situation.

Uber is part time for me but I've finally gotten to a point where I make enough money between both of my jobs to have a pretty nice car payment. I went and found the car that worked best for my, my family, and uber. Test drove it, love it, decided on it. 

I made sure to ask the salesman if they have dealt with uber drivers and he said yes. Went through the hole process of buying my first car (on my own) and knew if I didn't get it it would be due to low credit history/score. 

No. I did not get financing because I drive uber and it's not a risk the bank is willing to take. Has anyone come across this? Without uber income I look like I cannot afford a car payment but with it I become a liability?


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## Jimmy Bernat

Yep when I was buying my car they told me that most banks won't give loans to Rideshare drivers if that's their main source of income. They want to see a regular paystub from a regular job . They won't even consider income from Rideshare . 

If this is something you're doing for awhile I think you could make yourself regular paystub by getting a business licence and having your uber earnings funnel through said business and then cut yourself a 1099 or owner draw . I'm not a CPA so I'm not sure if that is how it would work but I think you can technically start a separate business license for Uber/Lyft and pay your self from that . Which would show your net earnings if you had the business pay for all expenses . 

But in reality if Uber is your primary source of income and you don't have good enough credit to do a non income verification type loan you're kinda SOL , maybe a buy here pay here type place ??


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## Med_driver88

My main source of income is from a medical practice, but when all is said and done it's about even. half comes from med half from Uber. Def not my main source of income.


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## Jimmy Bernat

So you should probably not even mention you're doing Uber at all . 
I think the main reason banks don't like Uber is because you're going to depreciate the car much faster then a normal driver . 

Try again but don't even mention Uber as a source of income


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## rtaatl

Banks won't generally loan to most people in the livery business because you're greatly depreciating the asset that's used as collateral to offset the loan they're giving you. This is where our favorite word in UP forum "depreciation" really comes into play. Some might not believe it exists, but it's a hard lesson learned when you go for financing on a new vehicle. This is why Uber had to come up with sub prime leasing since most drivers would never get traditional financing...not necessarily because of bad credit, but the type of industry the vehicle is going to be used for.


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## Med_driver88

I figured that was going to be what happened. Thanks for the input.


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## tohunt4me

Med_driver88 said:


> Hey guys! I'm new here, but I've been driving for uber for about a year. Sorry if this has been discussed in the past I couldn't find anything that fit my particular situation.
> 
> Uber is part time for me but I've finally gotten to a point where I make enough money between both of my jobs to have a pretty nice car payment. I went and found the car that worked best for my, my family, and uber. Test drove it, love it, decided on it.
> 
> I made sure to ask the salesman if they have dealt with uber drivers and he said yes. Went through the hole process of buying my first car (on my own) and knew if I didn't get it it would be due to low credit history/score.
> 
> No. I did not get financing because I drive uber and it's not a risk the bank is willing to take. Has anyone come across this? Without uber income I look like I cannot afford a car payment but with it I become a liability?


Thank Uber for destabilization of anything and EVERYTHING to do with rideshare !

Go to the Uber company store ,and pay $250.00 a week lease.

They have ensured that is all that is available to you.


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## I_Like_Spam

The difficulty you will encounter is that the vehicle you are financing is depreciating a lot more rapidly than one used for strictly personal use.

Since the car is also the collateral for the loan, it makes the loan a lot riskier for the lender, as they won't be able to get as much back if you default.


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## SEAL Team 5

Med_driver88 said:


> Hey guys! I'm new here, but I've been driving for uber for about a year. Sorry if this has been discussed in the past I couldn't find anything that fit my particular situation.
> 
> Uber is part time for me but I've finally gotten to a point where I make enough money between both of my jobs to have a pretty nice car payment. I went and found the car that worked best for my, my family, and uber. Test drove it, love it, decided on it.
> 
> I made sure to ask the salesman if they have dealt with uber drivers and he said yes. Went through the hole process of buying my first car (on my own) and knew if I didn't get it it would be due to low credit history/score.
> 
> No. I did not get financing because I drive uber and it's not a risk the bank is willing to take. Has anyone come across this? Without uber income I look like I cannot afford a car payment but with it I become a liability?


I know what you mean. I went to buy a new home and during escrow the lender found out I was going to use the home as a brothel. So they denied my loan. They told me the only reason is because I was charging for services and that opens the residence up to many lawsuits. They told me no problem with the loan if the services were free. So if you drive Uber, accept the ping, pick up the pax, cancel the ride, and drive them for free. Your loan just might go through then.


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## David Sullivan

I had the same problem commuting long distance for a job as a 1099 temp the car was a write off or a non asset asset if you will. It depreciated so fast the bank didn't believe I wasn't taxi driver. It's a conundrum .


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## JaniceCT

Don't mention uber. I got a car loan and all I said was I was an independent contractor. They went by m credit score and approved me


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## I_Like_Spam

JaniceCT said:


> Don't mention uber. I got a car loan and all I said was I was an independent contractor. They went by m credit score and approved me


You could run into a problem however, if you they asked and you didn't tell them that you were using the vehicle for commercial purposes.

Probably nothing will happen if you make all of your payments on time, but if you default and the bank finds out their collateral isn't worth anything due to the hundred thousand miles you put on the car ubering, this could be a fraud situation.


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