In this video, Calvin discusses what kind of cars he prefers to drive with Uber.
Personally, I own a Nissan Sentra SR 2014 model. It is very similar to the Sentra that Calvin has in this video. I financed the car for 72 months.
The best way to make money with Uber is to actually buy or finance your car, so that you can keep more money in comparison to renting or leasing a vehicle from a dealership or Uber.
If you decide to go through Uber’s leasing program, be prepared to pay $200-300 dollars a week for the vehicle that they lend you. This is going to cut into your profit margin greatly. I would avoid their leasing program all together.
Go ahead and save yourself about $1,000-$2,000 dollars and use it as a down payment for a financed vehicle from a dealership.
Build up your credit if you want to finance a vehicle, or GET A CO-SIGNER!!
Don’t always go for the new vehicle because they are overpriced and will devalue by about $5,000 as soon as you drive it off of the lot. Also, it will continue to devalue when you put miles on it.
I bought my vehicle for $13,500 with only 6,200 miles on it. I purchased the car in the fall of 2016 when it was only 2 years old. The original MSRP was roughly $20,000. I saved big by buying it used with low mileage on it.
Do not be afraid of negotiating with your salesperson! The vehicle I was looking at had scratches covering the back bumper of the vehicle because the person who was using the car was living in New York city and parking is tight there. I negotiated with the dealer to give me a $500 discount if they do not paint over the scratches, and if they do paint over the scratches I’ll just pay the full price of $13,500. The sales person gave me the deal and I took it in for service to be painted. It looked brand new after the service.
By financing the vehicle, I am paying about 4% interest, and over the 72 months, I’ll pay roughly $3,000 interest on top of the MSRP. Also consider the licensing, taxes, and other fees. The total cost over 72 months will bring it up to about $18,000. Not bad considering if I would have bought a new car for $20,000, the price would actually be $25,000 or so.
I pay $280 per month (with a 7 year/100,000 mile warranty).
Buy a vehicle thinking long term, and how your car will hold up over the years. Don’t buy based on price, but based on quality and durability. This way, you will spend less on maintenance, and have a vehicle that will hold up while driving endless miles.
Consider your insurance policy as well. Since you might be financing a newer or used vehicle, your insurance can be more expensive than if you had an older car. Also, I live in the city of Chicago, and I’m a young individual.
My State Farm insurance before I moved to Chicago was about $110 per month. A personal insurance policy through Geico in Chicago, IL is quoted for $160 per month. Because I drive for Uber, I purchased a commercial insurance policy for $266 per month. This covers me while I drive for Rideshare or on-demand services. You absolutely need it.
Different cities demand different prices for insurance, so get a quote and find out how much you might pay for insurance before you buy a vehicle.
Since I make a revenue of $3,000-$4,000 per month with rideshare or delivery, paying $280 for the car, $266 for insurance, and roughly $200 in gas is surely worth the cost. Also consider that I am developing other sources of income rather than just driving.
I own an importing business and I spend time operating that as well, so ridesharing and delivering is not my only source of income.
Thanks for reading,