Quick answer
Rideshare and taxi drivers mostly borrow to buy or replace the car they drive for work, and sometimes to cover repairs or a gap between cars. Because the car is used to earn business income through an ABN, it can often be financed with a business car loan or chattel mortgage secured by the vehicle. Lenders look at how long you've been driving, your platform or network statements, your GST and BAS record, and your personal credit.
Key points
- The ATO treats ride-sourcing as taxi travel, so drivers need an ABN and GST registration before their first paid trip, whatever their turnover
- Platforms report driver earnings to the ATO under the sharing economy reporting regime, so lenders and the tax office can see the same figures
- Fuel tax credits don't apply to cars, taxis or rideshare vehicles on public roads, so fuel efficiency feeds straight into your margin
- Lenders weigh time on the platform, steady weekly earnings and a clean BAS history more heavily than one strong month
Driving for a rideshare platform or a taxi network is a business, even when it’s just you and one car. The ATO sees it that way, and so do the lenders worth talking to. That’s good news when you’re financing a car, because it opens up business vehicle finance assessed on what the car earns, not only on a payslip you don’t have.
Below: how lenders look at drivers, what they’ll ask for, the tax settings that affect your numbers, and a few traps to steer around.
Why does the ATO matter to your car loan?
Two ATO rules shape how lenders see rideshare drivers, and both can work in your favour.
GST from the first trip. The ATO treats ride-sourcing as taxi travel for GST purposes. That means you need an ABN and GST registration before your first paid trip, regardless of how much you earn. The usual $75k GST turnover threshold doesn’t apply. Lenders know this, so one of the first things they check is whether you’re registered and lodging BAS on time. A clean lodgement record is quiet proof that you run the driving like a business.
Platform reporting. Under the sharing economy reporting regime, ride-sourcing platforms report driver transactions to the ATO. Your earnings are already on the record, so there’s little room for different versions of your income. When your platform statements, bank deposits and BAS all line up, a lender can work out your income quickly.
If you’re behind on BAS or haven’t registered for GST, sort that out first. It’s the most common reason a driver’s application stalls. Our GST calculator helps you work out what you owe on your fares.
How do lenders work out what you earn?
Lenders don’t just look at gross fares. They want to know what’s left once the platform’s service fee, GST and running costs come out. Typically they’ll:
- average your platform or network earnings over several months, often six or more
- check those earnings match deposits in your bank account
- look at how many weeks you drove and whether income is steady or patchy
- weigh any other income, such as a part-time job or a partner’s wage, if the loan is in joint names
- review your own credit history too, since for a sole trader there’s no real line between personal and business borrowing
Time on the job matters. A driver with two years of steady earnings has far more to show a lender than someone a month into the job. If you’re newer, our page on loans with an ABN under 12 months explains what lenders look for instead of a long history.
What finance suits a rideshare or taxi car?
| Situation | Finance that often fits | Things to weigh |
|---|---|---|
| Buying a car used mainly for driving work | Business car loan or chattel mortgage | Assessed on business use; the car is the security |
| Buying a newer hybrid or EV to cut running costs | Chattel mortgage, sometimes with a balloon | Lower fuel costs help serviceability, but a balloon must be paid later |
| Major repair or replacing a written-off car | Small short-term business loan | Fast, but weigh its full dollar cost against the fares you’d miss |
| Taxi operator buying an additional vehicle | Commercial vehicle finance | Lenders look at network income and driver arrangements |
| Refinancing an expensive car loan | Business vehicle refinance | Worth checking once you have a longer income record |
Our enquiry range starts at $5k and covers business purposes only, which suits most car purchases for driving work. If you’re comparing car options, our page on buying vehicles for a business sets out the main structures side by side.
When you’ve found a car and want to know where you stand, a short enquiry gets your situation in front of a real person, and nobody runs a credit check for asking.
What running costs should you plan for?
Lenders are really testing your margin, so know yours.
- Fuel. The ATO doesn’t pay fuel tax credits for light vehicles on public roads, and its examples specifically include taxis and ride-sourcing. Every litre you save goes straight to your bottom line, which is why many drivers move to hybrids.
- Platform fees and levies. Platforms take a service fee from each fare. In NSW, a passenger service levy applies to point-to-point trips; Transport for NSW says it rose from $1 to $1.20 in July 2023 and is due to stay in place until 31 December 2030.
- Insurance and registration. Commercial use usually means higher premiums than private cover, and in some states extra registration or authorisation conditions for vehicles used to carry passengers.
- Servicing and tyres. High kilometres mean frequent servicing and faster depreciation, which also eats into the car’s value by the time the loan finishes.
What should you watch out for?
- Weekly rent-to-own deals. Some schemes look cheap per week but cost far more in total and leave you without ownership protections. Always compare the total you’ll pay in dollars.
- Big balloons on high-kilometre cars. A car doing tens of thousands of kilometres a year can be worth well under the balloon by the time it’s due.
- Stacking short-term loans. One quick loan for repairs can be sensible. Several at once, each taking repayments, can sink your cash flow and your next application.
- Vehicle eligibility. Platforms and state regulators set their own rules on vehicle age and type. Check them before you buy, not after the loan is approved.
What to gather before applying
- Your ABN, GST registration and recent BAS lodgements
- Platform or network earnings statements for at least the last several months
- Business and personal bank statements showing those earnings arriving
- Driver’s licence and any state authorisation for passenger work
- The car’s details, price and seller, plus a PPSR check if buying privately
- Details of any existing car loans, leases or personal debts
An example: replacing a high-kilometre sedan
An illustrative example; numbers are invented. A Brisbane driver has driven rideshare full time for 20 months as a sole trader, registered for GST from day one and lodging BAS quarterly. Their current sedan has passed 300,000 kilometres and repair bills are climbing.
They find a two-year-old hybrid for $29k. Their bank won’t consider it because it only lends on personal income from employment. A vehicle lender approves a chattel mortgage instead, using 12 months of platform statements that match the bank deposits, a clean BAS record and a $3k deposit from the sale of the old car. The driver keeps the balloon small, because the hybrid will cover high kilometres quickly.
The fuel saving alone covers a large share of the new repayment, which is the point the lender focused on. For more on how lenders assess sole traders like this, see sole trader business loans.
Ready to look at your next car?
If the car stops, so does your income, so getting the right finance in place matters more than getting the flashiest car. We help drivers with business car finance, repairs and refinancing, including drivers whose bank only looks at wage income.
Our form is quick, about sixty seconds between fares. Enquiring leaves your credit score exactly where it was, and your details aren’t handed on to a stream of lenders and brokers. A real person on our team looks over what you’ve sent and rings you for a chat. Honest answers about your earnings, GST registration and existing car loan help us line up a suitable lender straight away.
Frequently asked questions
Can I get car finance as a new rideshare driver?
Sometimes. A new ABN makes it harder, but some lenders will consider it with a deposit, a good personal credit history and evidence of other income or driving experience. Many lenders prefer to see at least several months of platform earnings deposited into your account before they rely on rideshare income.
Do rideshare drivers really need to register for GST?
Yes. The ATO treats ride-sourcing as taxi travel for GST purposes, so you need an ABN and GST registration from the day you start, even if you earn well under the usual $75k threshold. Food delivery is different and follows the normal threshold.
Should I use a business loan or a personal car loan?
If the car is mainly used to earn income through your ABN, a business car loan or chattel mortgage usually suits better, because it's assessed on business use and may let you claim interest and depreciation for the business portion. Mixed private use needs to be apportioned, so speak to your accountant.
Will lenders finance a hybrid or electric car for rideshare?
Generally yes, if it's a recognised make and model with a resale market. Lenders assess it like any other car. Hybrids and EVs can lower running costs, which improves the margin lenders look at, but check the platform's current vehicle requirements before you buy.
My car needs urgent repairs and I'm off the road. What can I do?
A small short-term business loan can sometimes cover repairs quickly if you have a steady record of platform income. Compare the total cost in dollars with the income you'd lose while the car is off the road, and avoid stacking several short-term loans.