Uber Car Leases and The Benefits of Owning a Car Vs Renting a Uber Car
So you want to drive for Uber Car? but you don’t have a car to use? Ideally you’ll already have your own car that qualifies for an Uber service, but many drivers will have to buy, lease, or rent a car to use for ride sharing jobs. So What’s the best Option?
You can be approved to drive for Uber even if you don’t currently have access to a vehicle. You can apply and see if you pass the background and driving record checks before you go through the trouble of accessing a car. If you don’t have a car yet, apply to Uber first and think about how to get the car later.
When you decide to get a car to drive for Uber Car, is it a smarter financial decision to buy a car, rent a car, or do an Uber car lease? Each option has its upsides and downsides that I will cover in detail.
How Uber and Lyft drivers get access to cars:
Use a Uber car you already own
Buy a car, typically a used hybrid or compact Uber car
Lease a car through Uber Xchange, or TLC Financing Uber Car Lease Program
Rent a car for Uber through their Hertz or Enterprise programs
Rent a car for Lyft Car through the Express Drive program
Uber Lease To own program from TLC Financing
Best Uber Car Solution:
Drive Your own Car.
If you already own a car that qualifies for Uber Car, use it! Your car payment, if you even have one, will almost always be lower than a lease or rental payment. With the rates that Uber Car is paying these days, buying a second car when your first car already qualifies is not usually the right financial decision. Even accounting for vehicle depreciation, it’s wise to use the car you already own.
The only exception to using your own car for Uber Car might be if you want to invest in an UberBlack vehicle or Uber XL and commercial registration and insurance. If you just want to drive for Uber X, XL, Plus/Select or Lyft, use what you already have.
Renting A Car for Uber Car:
Both Uber and Lyft partner with rental companies to provide weekly rental cars in select larger cities. You pay a weekly fee to rent a newer model car. Insurance and unlimited mileage are included. You can drive your Uber rental car for Uber and Lyft, but you can’t drive your Lyft rental for Uber.
Upside of the Uber Car Rental Program: You can drive for Uber Car and Lyft Car before you commit to owning your own car. You don’t need to have your own insurance. You can get approved for a rental with no credit or bad credit. Downsides for Uber Car Rentals: High weekly cost. Not available in most cities. Very hard to get a car in busy cities. No Equity value (after you use a uber car rental you are paying to not own a car and your money is going to the rental only).
Uber Car Lease and Uber Lease to own Programs:
Uber Lease to Own and TLC Lease to own will have out of pocket cost such as TLC Registration ($500) TLC Diamond Program ($625) and insurance cost (Normally Between $300-$500 A Month)
Upside: After Payments are finished you own a Uber Car and you have equity.
Uber Car Leases are much cheaper then a Rental Car.
Owning your own car to drive for Uber can be the cheapest option, with fewer restrictions than Uber leases and weekly Uber rentals. The Uber car will be yours to do what you want with, and the monthly payment will almost always be cheaper than Uber Car leases and Uber Car rentals.
If you decide that buying your own car for Uber is the way to go, buy the type of Uber car that can realistically make you money with current Uber rates: An older used car in great condition that costs $5,000–$15,000 will be nice enough to please your riders and won’t dig too deeply into your weekly ride earnings.
Always make sure to closely check Uber Car vehicle requirements before you purchase a car, and email Uber just to make sure your car qualifies, especially if you’re aiming to use your car for UberXL or Plus/Select.
Good Uber auto loans — If you decide to buy a Uber car
If you decide that buying a car to drive for Uber is right for you, it’s worth taking a moment to compare a few different auto loan options. In my own search, I’ve found that these are a fast and easy way to get a sense for the kind of cars and loans you can qualify for.
Upside: You’ll own the vehicle, so you can use it as you wish, sell it whenever you want Downside: If the vehicle is too expensive and Uber isn’t very lucrative in your area, you might get stuck with a car payment you can’t afford
Don’t buy or lease a Uber car until you’re approved to drive!
I’ve Heard from people who went out and bought or leased a car before they were approved to drive for Uber. In a lot of cases, these people were confident they could pass the driving record check and background check, so they went ahead and got the car before Uber approved their application. Then something happened in the application process — delays, or outright rejections — and now they’re stuck with a car payment that they may not be able to afford. Don’t put yourself in that position.
Get approved to drive before you get the Uber car!
Is it worth buying a car to drive for Uber?
Buying a car exclusively to drive for Uber or Lyft is a big investment but Uber Car Drivers In NYC are Clearing $1,500 to $2,500 a week.
Getting a Uber Car Lease to Drive For Uber Makes the most sense.
Uber Car Rentals should be for the first 3 weeks of driving to make sure your comfortable behind the wheel for long periods of time.
To Learn more about Uber Car Leases Give us a Call at 917.655.7180.
or visit http://www.tlcfinancing.com/usedcars for more information on uber car leasing prices.