Uber Car for Drivers | Should You Buy, Rent, Or Lease An Uber Car?
Deciding how to get an Uber car is probably the toughest question for new Uber drivers.
What’s better — to buy, rent, or lease?
Taking into consideration the cost and reliability of cars, here’s a guide to help drivers decide the best way to get an Uber car.
A Ridester Comprehensive Guide on Getting an Uber Car
1. Advantages of Buying an Uber Car
In most cases, this is probably the most affordable option when getting an Uber car, especially if one considers the restrictions on leases and rentals.
The monthly payment cost less compared to renting, and drivers also have the authority to do what they want. Being the car owner, the driver also gets to keep all the incoming revenue.
It is important to consider what type of car to buy since Uber has strict requirements for what type of car drivers are allowed to use.
2. Advantages of Leasing an Uber Car
Leasing an Uber car is best suited for drivers who are not yet sure if they’re going to commit to Uber. They can test Uber first before committing. Drivers who don’t have good credit may also take advantage of this option.
Uber has a Xchange Lease program, which the company recently developed. The program is flexible for driver applicants and provides better options than the conventional auto leasing. Participants can return the car in two weeks notice and with lesser fees than other multi-year leases. They also offer unlimited mileage and car maintenance.
3. Advantages of Renting an Uber Car
The advantages of renting an Uber car are mostly the same as leasing. However, an additional benefit is it doesn’t require drivers to have an insurance to rent.
The Uber rental program also includes unlimited mileage and partnership with other companies for more weekly car rentals. Renting a car through Uber allows the driver to weigh things out before making a decision to acquire a vehicle for Uber rideshare.
Disadvantages of Buying, Leasing or Renting an Uber Car
1. Disadvantages of Buying an Uber Car
When a driver buys a car for Uber, it automatically means committing to this industry due to the monthly payments. On top of that, drivers will also be responsible for taking care of and maintaining their Uber cars. For most, monthly car insurance is also an additional expense.
Using a vehicle you already have is still a viable option if the goal is to maximize your profit. The rideshare market can be very volatile, thus, buying a new car for this purpose might be overwhelming at some point.
2. Disadvantages of Leasing an Uber Car
When leasing Uber cars, a notable disadvantage is the high monthly payments. If the Uber demand is low in the area where the car will be used, the driver will be paying more than what he could earn. The Uber Xchange Leasing program has neat offers different from the traditional ones, but it’s a bit expensive. It requires rideshare insurance, which new applicants may not have. The total monthly expenses could range from $600 to $1000 depending on the car and the insurance.
3. Disadvantages of Renting an Uber Car
Similar to leasing, the cost of renting is high. Additionally, there are certain areas where Uber rental is not available. In some cases, drivers also have difficulty renting a car because of the high demand for vehicles.
In situations wherein the car is accidentally damaged like for example, a stone hits the windshield, the driver has to pay for the damage. On the other hand, if the driver owns the vehicle, a special coverage in the car insurance takes care of these things at a very minimal cost.
Tips and Tricks on Buying, Renting or Leasing an Uber Car
- When buying, make sure to get the best auto loan rate. Do a thorough research on different auto-loan programs and take the time to compare each one. This will help lessen the total loanable amount if the deal is good.
- It’s important to understand Uber’s car requirements. They’re very strict with vehicle models. On top of that, they also require a mechanical inspection before getting approved.
- Considering the type of vehicle to purchase is also helpful. A cost-efficient, reliable car greatly reduces the driver’s fuel and maintenance costs.
- Choose a vehicle that satisfies a number of Uber services like UberX, UberXL, and UberSelect. These services differ in the number of passengers the vehicle can accommodate and quality of the ride. Catering to potential customers on different platforms allows the driver to make more money.
- Think carefully whether to buy a new or old vehicle for rideshare. You may not want to put thousands of passengers in your brand new car. On the other hand, other drivers have absorbed some of the depreciation of a used vehicle. Furthermore, old cars have lesser initial investment and still goes a long way capable of 4 to 5 years of service.
Renting or Leasing an Uber Car Tips and Tricks
- When getting a lease or rental car for Uber, make sure to go for companies that offer Uber-accredited vehicles.
- Try checking Uber Vehicles Market. Uber created this platform to connect Uber partners looking for a driver or drivers looking for partners.
- Most lease companies require drivers to have insurance. Therefore, check the leasing company’s requirements first.
- For cheaper options, consider checking out peer-to-peer car service. These are vehicle marketplaces available today allowing drivers to connect with anyone interested in getting their car leased.
Learn more about the Uber Xchange Leasing program in this video from Gabe Ekemezie:
My Take On Uber Cars
Deciding what option to choose when getting an Uber car can be a tedious task. Drivers have a lot to consider, but if done correctly, drivers can get the most out of Uber and run a successful business.
It’s always good not to make rash decisions, especially for the rookies. Learn as much as you can about Uber first before getting into a long-term commitment then decide if leasing or buying a new car is more suitable for you as a driver.
Make good on your investment and drive safely!
How will you get your Uber car? Let us know in the comments section below!
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