When was the last time you took an Uber or a Lyft? If you did then you probably sat back in comfort as you were ferried around.
But some amongst you might have wondered whether this was an easy way to earn some extra cash. Setting your own hours and picking up passengers when you have a few hours to spare could be a great way of earning some additional income.
But if you are thinking of joining the thousands of drivers signed up to ride-sharing apps then did it ever occur to you that you can rent a car that meets the requirements and standards set by Uber and Lyft rather than buying your own?
Let’s examine leasing vs buying a car.
The Cost of the Matter
The first question you need to ask yourself is whether renting a car is going to be a financially viable option.
Renting cars can be expensive. If you’re not going to be earning enough from ride-sharing apps to cover the rent, fuel and maintenance costs then there is no point in renting.
Uber also now lets you rent cars by the hour in 5 U.S cities. So if you’re just looking for some short term cash this might be an option to consider.
Another expense you need to factor in is rideshare insurance. Although ride-sharing firms do have their own insurance to cover passengers in case of an emergency, ride-sharing companies like you to have your own insurance. This is in case of an accident when you were not in a live ride.
But that is not to say that buying a brand new car for ridesharing is always a smooth ride. If you already have a car that works well but does meet the high standards of Uber or Lyft then make sure that your new car is a worthy investment.
You may wish to consider personal uber car loans that can help you cover the cost of all the expenses of renting a car. This is with the added bonus of no credit check needed.
The Perils of Leasing Vs Buying a Car
The amount of work available could change quite quickly. Whilst you may think there is lots of work available, ride-sharing apps have a reputation for over-saturating the market.
Uber alone boasts it offers 15 million trips a day, worldwide. This works as a great busniness model for the company as it means there is always a car available at short notice for the customer but it means there might be less work for you.
What Uber and Lyft expect in terms of standards varies from state to state so it is important you check out what is required for your local area. For instance in New York a ca,r must be newer than 15 years old and cannot be a salvaged or rebuilt vehicle.
Different states also have different types of Uber. In South Florida, which encompasses Miami, riders have the option of a normal Uber X, an Uber Lux, and an SUV Lux. In New York riders can only choose between Uber X and Uber XL.
To drive an Uber Lux you need to have a car that is newer than 2010 and leather or vinyl interiors with a railing of 4.7 or higher. A Lux driver must, therefore, have already have gained some experience in a normal Uber X and proved themselves before he or she can upgrade and start earning more money.
If you’ve just started college in Florida maybe this sounds like a great way of funding your studies with the ability to rise through the ranks to a luxury driver over the years you’re studying and a pretty sweet ride to impress your new college mates with.
But this could also be a massive gamble if you’re planning on buying a luxury car specifically for becoming a Lux driver.
Renting a car first to gain some experience and boost your raising as an Uber X driver could be a more sensible option. But again tot up the costs and benefit as if it were a busniness before you make any decisions.
Uber Rentals For Drivers With Bad Credit
But what if you’re thinking about renting and you’ve got bad credit? There is a service called Uber Xchange. They will lease drivers with poor credit cars by partnering with car dealers.
The catch is that while you don’t need good credit the weekly or monthly interest repayments are a lot higher than if you set up a traditional financing arrangement.
This service also includes insurance and any fees involving servicing or fixing the car. But while this provides an all-in-one easy service, this can cause problems if the company takes too long to fix your car: every day it is in the garage is every day you’re losing money.
Ridesharing is The Way Forward
Despite much talk about the so-called gig economy destroying traditional 9-5 jobs and ride-sharing apps undercutting taxi drivers, ride-sharing apps can be a revolutionary force for good.
The riddle of leasing vs buying a car can be made easier by weighing up your options and studying the ridesharing market in your area.
Talk to other drivers next time you get a ride and try to get a sense of whether this could be a long time gig in which investing in a new car is a sensible option or a short-term way of boosting your income.
If the latter is the case, factoring in car rental and insurance costs to the money you can make from a ridesharing option might be a better option.
If you’re interested in how new innovations can help you boost your income be sure to check out our tech pages.
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