New rideshare drivers without cars: buy, rent or lease?


(Bick Bhangoo) #1

In most cases, it is seen that people who apply for rideshare services such as Uber or Lyft own a car. But if you want to work for such a service but do not currently own a car of your own, then you should carefully think and decide where you want to invest your money in having a car: by buying one, by renting one, or by going for a lease agreement.

Vehicle Requirements for Uber

For Uber, if you are buying a car, or renting a car from some source other than Uber rental programs, then you should be aware of the minimum requirements set by the company. The vehicle should have four doors, apart from having four seat belts for each passenger. It should also be in a good cosmetic condition. The year of the model should be at least 2007. Also, if you want to apply for the other expensive services such as UberX or UberSUV, then your car should have more specifications in order to qualify. Before starting your job as a driver, Uber will perform a mechanical inspection of your car.

Apply as a driver before owning your car

It can happen that you do not have a car of your own, and you are ready to buy one (or rent), but you are not sure whether you will qualify as a driver for the service. For such situations, Uber and Lyft have provisions which allow you to apply first and know whether you are in or not. That way, you can be sure to know if you need a car or not. There have been many cases where people have bought or leased a car being confident of the fact that they would pass the driving record and background check, but due to delay or rejection, they got stuck with car payments which they could not afford. It is better to be approved before investing in a vehicle. Your application for approval will take at most a week from your registering date.

Car renting options

Other than people who buy a new car, some drivers rent their car through various sources. Just make a note of the requirements set by the service you want to work for, and rent your car from one of the many available car renting services.

Hyrecar

Hyrecar is a peer to peer car service which lets you rent a car, primarily for commercial use. The weekly rentals cost around $180-$200, and the cost includes insurance, maintenance, unlimited miles, and roadside assistance.

Uber's options for car rentals

Uber has partnered with car rental programs such as Enterprise and Hertz. The cost is around $180 per week, and the service also has other advantages such as unlimited mileage, routine maintenance, insurance, and permission for personal use. For qualifying for the service, you will have to register and pass a background check. Also, you have to make sure that you drive for a minimum amount of time for each app. Reservation of a car cannot be made in advance.

Lyft's options for car rentals

Lyft has a similar car rental program known as Express Drive. Almost identical to Uber, the driver has to pay a fee per week, which includes insurance, unlimited mileage, and maintenance.

Craigslist

Craigslist is one of the leading American classified advertisements website with different sections. You can rent someone's car and use it for your rideshare service. The advantage of renting a car from someone who has already used his car for Uber service is that the vehicle is already registered in Uber. All you have to do is sign a lease agreement with the former owner of the car, list your name on the vehicle's insurance policy, and your car will be ready for service. This is a very nice strategy used by many new rideshare drivers, as it does not require much of an investment. It also gives you an option whether you want to continue driving for the company or not. If you feel you want to keep your job as an Uber driver, then you could get a new car. But if you realize that the job is not meant for you, then at least you will not be stuck with your car payments.

Loans

You might feel that owning your vehicle is the best choice for you. In that case, before making the payment straight away, look for the best loan options. Sites such as 1-800 Fresh Start, MyAutoLoan, CarsDirect, etc. provide you good options for auto loan services. Since it is a big decision you will be taking, go through all options, take your time and make a move. With the right choice, you will have a good fortune in the ridesharing business.

Should you buy an expensive car for Uber?

Many rideshare drivers have said that it had been a lot of investment for buying an expensive vehicle just for Uber, or Lyft. The main reason behind this is that in all situations, the investment does not pay off, and causes a problem with their loan payments. So, instead of going for an expensive car, buy an affordable model. That way, your investment will be in your budget, and also your investment will pay off within a few trips. So, instead of looking for few big fare rides, go for many small fare rides. Services such as UberSUV are not used as much as other affordable Uber services, especially in relatively less busy areas.

Keeping these few tips and strategies make your decision. Go through different options on the internet and make the most optimum decision. It will help you start your business without any payment problems.


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