Rideshare car finance

For a rideshare driver, the car is the whole business — the shopfront, the equipment and the biggest expense. Financing it as a business vehicle, rather than a personal car loan, means the paperwork, tax and planning line up with how you actually earn.

Is rideshare driving a business?

As far as the ATO is concerned, yes. The ATO says ride-sourcing drivers must have an Australian business number and be registered for GST before their first trip — and that, unlike most businesses, you have to register for GST regardless of how much you earn. That’s what makes rideshare car finance a business finance question: you’re a sole trader buying a vehicle to earn income.

How is a rideshare car usually financed?

Most drivers use a chattel mortgage, owning the car from day one with the lender holding security over it. Hire purchase and finance leases are alternatives. Because you’ll generally claim only the business-use portion of the car’s costs, your accountant should help you choose the structure.

What do lenders look at for rideshare drivers?

Rideshare income is variable, so lenders look for evidence that it’s steady enough to cover the repayments:

1. Platform earnings statements covering several months.
2. Bank statements showing payments arriving regularly.
3. Your ABN and GST registration, and how long you’ve been driving.
4. Your credit history — considered case by case.
5. The car — price, age and whether it meets platform rules.

Drivers who also have other income — a part-time job, another business — sometimes find that helps. If you’d like to know where you stand, make a quick enquiry; there’s no credit check just for asking.

Check the platform and state rules before you buy

Ride-sourcing platforms set their own vehicle requirements, typically including a maximum vehicle age, minimum number of doors and seats, and condition standards. States and territories may also have point-to-point transport rules. A car that’s cheap because it’s older may only have a short working life left on the platform — which matters if the finance term is longer than that.

Question to ask	Why it matters
What’s the platform’s maximum vehicle age?	Sets how long the car can earn
Does the model qualify for premium services?	Can affect earning potential
What does my state require?	Registration, inspections or accreditation
How long is the finance term?	Should end before the car ages out

Kilometres, fuel and replacement

Rideshare cars cover big distances, often in stop-start traffic. That makes running costs — fuel or electricity, tyres, brakes and servicing — a much bigger share of your costs than for most business vehicles. Hybrids and electric cars are popular for that reason. The government’s Green Vehicle Guide is a useful place to compare models’ fuel and energy use before you choose.

High kilometres also mean faster depreciation, so be careful with balloons. A large balloon on a car that’s done big distances can leave you owing more than it’s worth when the term ends. Read balloon payments explained and try the numbers in our fleet cost planner.

Keep a logbook from day one

Most drivers use the car privately too. The ATO explains that a logbook or diary recording business and private travel is what supports the business-use percentage you claim. Many drivers use an app; whichever method you choose, start on the first day. Our guide to fleet total cost of ownership shows how to put all the running costs in one place.

Running more than one car?

Some drivers grow into small fleets, hiring cars to other drivers. That’s a different business model with its own insurance and accreditation questions, and lenders will want to see how the cars are rented and managed. If you’re heading that way, mention it on the form so we can match you with lenders comfortable with rental fleets.

Insurance for rideshare work

Standard private car insurance may not cover you while you’re carrying paying passengers. Lenders typically require comprehensive insurance on the financed car, and for rideshare work it needs to suit how the car is actually used. Get quotes for the specific model before you buy, because premiums for rideshare use can change the overall cost noticeably.

New, used or nearly new?

Many drivers choose a late-model used car — one or two years old — to avoid the steepest early depreciation while still having plenty of years left before it reaches the platform’s age limit. A new car brings full warranty and the longest possible working life on the platform. An older car is cheaper upfront but may have only a short time left before it ages out. Whatever you choose, run a PPSR search on a used car’s VIN before paying, and make sure the finance term ends before the car stops qualifying. The new vs used vehicles page has more.

Let’s get you driving

Tell us about the car you want, how long you’ve been driving and what you earn through the platform. There’s no credit check when you enquire, your details stay with one specialist rather than going to a crowd of lenders, and a real person will call you to talk it through. Please give accurate numbers on the form — especially your earnings and how long you’ve been driving — so we can find the right fit first time.

See if you qualify →