I think the example of the Hyundai Sonata Hybrid losing $12K over two years is kind of an extreme example. While they have no equity in the vehicle once the lease term expires, drivers don’t have to commit to buying a vehicle. Leasing an Uber or Lyft car is still a great way for drivers to acquire an eligible vehicle without going all in from a cost perspective. According to our research about how much Uber drivers make, you should expect to make around $10–$20/hour after expenses. Lyft Express Drive is Lyft’s car rental program and it is available right now in 18 cities. In some cities in the U.S., Lyft offers its Express Drive service, which allows drivers to rent a car through Lyft and its rental partners, Avis Budget Group, Flexdrive, and Hertz. 1. No doubt you need to look carefully at resale values of vehicles before you buy. Drivers will get a basic mid-size vehicle fit for UberX. As you can see, it’s hard to say which rideshare vehicle option you should choose. With Hertz, you can rent a car from 7 days up to 28 days, giving drivers a variety of options to suit their needs. Please contact the developer of this form processor to improve this message. This article is sponsored by our buddies over at QuickBooks Self-Employed whom support the site by sponsoring articles centered around the financial health of rideshare drivers on the site. You can also switch between cars, so if you have your own car but also rent a car through Lyft, you can switch back and forth between them. You go to Kelly Blue Book and look up its value. In this article, we examine the cost to rent a vehicle for Uber & Lyft versus the cost to purchase a vehicle. Glassdoor says driver earnings across the country average around $14-$15 per hour – before all expenses are taken into account. It’s far cheaper in the long run than leasing or renting, and we consider it the best option. Hertz will inspect the car, perform service on it if needed, and get you on your way. That doesn’t sound like much loss over 2 years.. HyreCar is an interesting option which is kind of like the Uber of car renting. If your car is provided through Hertz, you have to renew your weekly rental every seven days by going to the Driver Dashboard and hitting the “Renew” button. 12:29. Each scenario does have its pros and cons, but I feel like one is better than the other. Learn More{{/message}}. In addition, the leasing and rental options will cost you roughly double what it costs to own a car—but by buying a car, you have equity in the vehicle; money back in your pocket if you decide to sell. If you buy that used Kia Forte that is 2 years old and drive it for another 50K miles, it will depreciate to about $4K-$5K as well. You keep it another two years, put another 50,000 miles on it, and go to sell it. Visit this application and select “I need a car”. I wrote an article about the solid financial reasons to lease or rent a car through Uber or Lyft if you are going to be a full-time driver. The real benefit to renting is that there is no long-term commitment involved. If you own your own car and can’t drive, try offering your car for rent. They even take care of the charging. Many full-time Lyft drivers do get a Lyft car for free by working 35-50h/week for Lyft. Take $14.50 an hour and subtract possibly two gallons of gas ($5) and another $1 for general vehicle maintenance, insurance, depreciation, wear and tear, and other expenses, and you’re down to about $8.50 an hour. What do you think of the leasing and purchase options available to drivers? Lyft partners with GM (Maven) and Hertz to offer weekly rentals of mid-size sedans and suvs. Log in to your Driver Dashboard 2. The difference with vehicle ownership is even though you are constantly accumulating more and more depreciation costs, you don’t have to pay for it until you’re ready to get rid of the car. On-demand car rentals, protection included! Rideshare companies will take anybody with a driver’s license and a clean background check. However, the MORE you drive for Lyft the LESS you pay for your car until the car is FREE. Mid-size cities usually have one or two. Insurance and maintenance, as with all rental programs, are included in the rental cost. It’s a weekly rental, available … The good thing about Maven Gig is that it’s not tied to one company (the way Hertz is tied to Uber, for instance). Hertz provides all insurance which applies when you’re online and offline with the Uber app. Let’s say you buy this same Sonata after it’s already two years old and has 50,000 miles on it and you purchase it for $12,000. That comes to $670 a month or about $168 per week. Prices vary by city, so it’s not possible to give a detailed breakdown on price here. There are also cars that are available for “Instant Booking”, to help you avoid any chance of being denied by the car’s owner. Your depreciation cost comes to $3,600 over two years—that’s far lower than $14,000 if you had bought the car new. Check the Lyft site for your city to get the details on renting a car for Lyft. But as discussed earlier, you pay all associated car expenses—including depreciation, insurance as well as the full purchase price of the car—up front as you pay off the lease. Terms of Service & Privacy Policy. Tap 'Add vehicle 4. Hertz, Avis, Zipcar, and Getaround are all Uber rental car partners. Upload required documents 5. You have to rent for a minimum of 7 days, but you are free to return the car any time after that. Return it anytime after seven days. The ride-sharing service Lyft has rolled out a new and improved Ditch Your Car program available until mid-December to "select riders" in three cities. Jonathan Cousar began driving for Uber in 2013 when the ride-hail company first began operations in New York City. Here are our top choices. You find out your beautiful Sonata—which still looks and drives like new—is now only worth $12,000. Let’s take a look at the options that drivers have for obtaining a vehicle when they don’t already own one or need one in a pinch. Hertz is a great example of a company that is updating their business model to include the new on-demand companies. Your email address will not be published. With leasing, you pay depreciation every week. Typical cars you can choose from are the Chevy Cruze, Malibu, and, the all-electric Chevy Bolt. Sometimes though, Uber and Lyft drivers will buy, rent or lease a car for the sole purpose of rideshare driving. Please contact the developer of this form processor to improve this message. I’m just about to purchase a new 2018 Kia Forte (last years model) for $13,800. Prices start at $214 a week, not including taxes, fees, fuel costs or other additional charges. Disclosure: Ridester.com is supported by our users. Drivers who rent a car through Lyft cannot drive for any other gig economy company, an option many contractors rely on to make ends meet. HyreCar 101: Step-by-Step Guide to HyreCar, What it’s like to rent a car with Getaround, Here’s What Happens When Your Car Becomes Too Old For Uber, How California Earnings Minimums Work for Uber, Instacart, and Other Gig Apps, Amazon Flex Ratings: About Standing, Reliability, & Deactivations, Is DoorDash Down? The first way is a standard car lease: in short, a lease from a dealership or private party. For easy payment, Lyft deducts rental costs from … Would you recommend a lease or outright purchase? Further, you will initiate the rental process through Lyft’s Driver Dashboard. [su_youtube_advanced url=”https://www.youtube.com/watch?v=U7sFBicsWCQ” controls=”alt” showinfo=”no” rel=”no” fs=”no” theme=”light”]. The rentals are generally between $150-$250 per week, but the rental fee is reduced to $25-$40 if you do a certain number of rides per week. Purchasing a vehicle for Uber or Lyft is obviously the best route if you can afford it. Since your very first rideshare trip will put you in violation of the lease terms, standard leases are not the way to go. I would prefer renting a car rather then buying, due to the fact that renting a car is not just a cost effective option as you do not have to pay EMI, or maintenance and insurance fee, all you have to pay for is fuel. Once you're approved, choose where and when to pick up your rental. New York, for example, has a lot of these rideshare leasing companies. Open the Lyft Driver app 2. It really depends on what point you’re at as a driver, how long you need the vehicle, the city you drive in, and other factors that don’t apply to everybody. As the two companies became more well-known, more and more people started using Uber and Lyft as their sole source of income. This is a good way to check out rideshare driving to see if it’s right for you before making a longer-term commitment to it. Tap 'Vehicle' 3. You can complete the Lyft application even if you don’t have access to a qualifying vehicle. As in leasing, the monthly price you pay is as high because it includes enough to cover all these expenses. So we’ve taken a look at leasing a car for rideshare, as well as purchasing a car for commercial purposes. In other words, a large part of your monthly rental fee or lease payment goes towards covering the depreciation of the car. Wait for our approval (typically within 24 hours), and that's it! There are pros and cons to each. Buying a car exclusively to drive for Uber or Lyft is a big investment that may not pay off if your market isn’t busy with ride requests. In this method of leasing, you go into a car dealership and tell them you’re looking to lease a vehicle. Driving with Uber and Lyft appeals to those in-between jobs. To rent from HyreCar, all you have to do is go to its website and: HyreCar lets car owners set their own prices. Earnings from rideshare driving have decreased dramatically over the last few years. Search online to find rideshare leasing companies in your city. Unless you are buying a ‘certified pre-owned’ vehicle, that used car with 50K miles on it can easily have engine or transmission problems on it that can cost thousands of dollars, thereby erasing a chunk of the savings over the new car. Drive for any ridesharing, delivery or on-demand companies. You make arrangements with the owner to pick up the car. One warning about aGO: they have very low ratings in the App Store. ... Should You Rent or Buy a Car for Uber or Lyft? Through the program, drivers apply online or through the Lyft app and pick up their rental at an eligible Avis, Flexdrive or Hertz location. Your weekly payments will be taken directly out of your Uber earnings, so you must drive for Uber enough each week to make the weekly payments. See our Affiliate Disclosure for more information. The number of required rides varies by city. He has booked more than 7,000 trips. Flexdrive. Once you're approved, choose where and when to pick up your rental. During the first three years of my driving career, I was a full-time, hardcore driver. This partnership lets Lyft control car type, quality, and driver experience. Driver Dashboard: 1. As an example a 2015 Toyota Camry (which is about 3.5 years old as I write this) that has about 8000 miles on it. That $14,000 comes to $134 a week. The smart thing to do is to by a 3 or 4 year old used car that has extremely low mileage for it’s age. However, you don’t get to keep the car 24 hours a day. While convenient, Xchange leases were often more expensive in the long run than just purchasing a car for Uber or Lyft. However, some leasing companies have sprung up that do nothing but lease cars to Uber, Lyft, and other rideshare drivers. So, you’re more likely to find a good deal here than from one of the large rental companies that have fixed prices that are normally higher than what individuals are willing to rent their cars out for. Lyft drivers make money by taking people who don’t want to – or can’t – drive themselves to the places they need to be. aGO is another fuel-free option offered only in Chicago. Lyft must also approve the new vehicle before you can drive with it. Lyft rental program is similar to Uber’s in that in order to access a car; you pay a weekly fee that ranges anywhere from $180 to $235 a week. Avis and Hertz rentals both start at $214/week Sponsored by QuickBooks Self Employed. That includes drivers for Uber and Lyft, as well as delivery companies such as GrubHub, DoorDash and Amazon Flex. How to Rent or Buy a Car for Uber & Lyft: Best Options? Note: the former leasing arm of Uber, Uber Xchange, is now defunct. You'll also need to pay a security deposit that's 100% refundable. He has also done extensive research into driver issues related to pay and working conditions. Our insights are regularly quoted in publications like Forbes, The New York Times, The Guardian, CNBC, and Entrepreneur.com, just to name a few. Start. Personal use is allowed, You can’t always reserve your car in advance. Nowadays, of thousands of people around the world drive with Uber and Lyft full time. You can get a car through Lyft and in particular with the Lyft rental program. As you can see, you do not want to spend a lot of money on a car if rideshare is your primary purpose for purchasing it. Lyft and Flexdrive partnered to start their Express Drive program to allow qualified drivers to find a ride sharing vehicle. The going price is about $9K – $10K for a two year old Kia Forte with 50K Miles on it. Choose your location, dates, and vehicle. Keep in mind that this industry is very volatile and things can change dramatically and suddenly. After four weeks you’ll have to show up at the Hertz office in-person to renew again. Upload required documents 5. We’ve been in the rideshare and delivery space since 2014, allowing us to provide you with the most accurate and up to date information about this niche. Now, it will be worth approximately $8,400. Uber and Lyft both started with the same basic idea: Find people who already own cars and give them a platform to earn extra money on the side. Visit this application and select “ I need a car: the former leasing arm of Uber,,... 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