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Driving for Uber is one way to supplement your income from another job — or as a main job if you like to work on your own schedule. While the company recently ended its financing and leasing programs, you still have other rental and financing options to choose from.
No. Uber ended its financing program in 2017, when it was reported that many drivers struggled to earn enough money from driving to pay for the high monthly payments and outstanding interest rates from their car loans.
Similarly, Uber sold its leasing program Xchange to Fair in 2018 after reportedly losing $9,000 per car on average. While Uber does mention on its website a fleet program that involves driving a car that someone else owns, there isn’t any further information on how this works.
If you don’t currently have a car and need one for personal use as well as for your side hustle, you may want to consider buying or leasing your own car. The cost of buying a car would vary based on if you buy new or used, while leasing would likely run you at least $200 per month with an extra amount due at signing.
While buying or leasing independently may cost you more up front, it gives you freedoms you wouldn’t have if you were renting. These include the option to customize the car to your liking and not having to pay any extra fees for any mess that may occur.
Yes, but you’ll need to rent from one of Uber’s partners. Options include hourly, daily, weekly and monthly rentals.
Sergei lives in Ontario and recently got a side job working as an Uber driver in a fairly affluent region. He wants to get a car for both work and personal use. Knowing his clientele will prefer a luxury vehicle, Sergei decides to buy a 2020 BMW 330I XDRIVE Sedan for $53,000.00 from a dealership. After putting a 15% down payment of $7,950.00 on the car, he heads to his local bank where he applies for an auto loan to cover the remaining cost.
Because Sergei has a solid credit history, he is approved for loan to cover the outstanding amount plus 13% HST on the purchase price. Along with the cost of his loan, he also pays approximately $180.00 to register his vehicle with the province of Ontario – this includes the cost of license plates, a sticker and a vehicle permit.
|Cost of new car||$45,050.00 ($53,000.00 less $7,950.00 down payment)|
|Loan type||Auto loan (term loan)|
|Interest rate (APR)||5.90%|
|Loan term||7 years|
|Additional fees||Origination fee of 3.00% ($1,527.20)|
|Payment||$756.28 monthly or $348.68 biweekly|
|Total loan cost||$63,527.52 with monthly payments or $63,459.76 with biweekly payments|
Had Sergei chosen to rent a car through one of Uber’s drivesharing partner companies instead, he could’ve ended up paying around $5-$10 per hour (plus tax) to rent the same type of vehicle. Assuming a rental cost of $6.50/hour and a 15-hour work week, this would’ve cost just over $5,000/year plus tax.
Bear in mind, though, that this would’ve only been the cost of renting a vehicle for Sergei to drive for Uber. He still would have had to find (and pay for) another means of transportation to use when not driving for Uber.
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.
While it’s up to you to decide which type of car to drive for Uber, there are a few requirements it needs to meet and these vary based on where you live. Generally speaking your vehicle needs to be:
Whether you should rent a car or buy or lease your own car depends on your personal situation, including your budget and goals.
If you have a car that fulfills all of Uber’s vehicle requirements, you’re ready to sign up. Either download Uber’s mobile app or go to its website to begin the process. You’ll also need to upload a photo of your driver’s license, vehicle insurance card and vehicle registration for the background check.
Uber requires new drivers to provide the following documents:
You may be asked to provide additional documentation depending on where you live.
Driving for Uber may be able to help you earn some extra cash on the side. But you’ll need to use your own car or rent one through its partners to qualify.
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