How to Buy a Car to Drive for Uber
Driving for Uber seems like a tempting opportunity to earn extra cash. The average earnings are $15 per hour, so this could even be your primary income. But how to become a rideshare driver if you don’t have a vehicle?
This guide discusses how to get a car with Uber programs and discusses options you have available to acquire a vehicle. Keep reading to learn about getting a car and starting your rideshare business quickly!
Finding the Right Vehicle for Your Driving Gig
If you plan to buy a car through Uber or other related programs, you might have a limited selection available. That will narrow down the choice, which is convenient if you don’t know where to begin.
Those who don’t need to get a car with Uber programs but have the freedom of selection have more options available. But if you are new to the rideshare business, you don’t need a large investment. Choose a decent option that will make your passengers comfortable.
According to experts, your car investment should be anywhere from $5 to $15K. That way, you won’t have a vast sum to pay back. It ensures you start making a net profit from your rideshare business soon.
Buying a new car is another option. It could be a better approach to lease or rental payments, especially if you sell the vehicle after a while. But you need to do serious math to avoid problems. Remember that you’ll need Uber insurance and calculate car depreciation. New cars tend to lose much of their value in the first several years.
Choosing Your Car
Your budget is the most important consideration, but you still want a comfortable and reliable car for you and the passenger. You can get a car with Uber discounts for new vehicles. This program secures savings from $500 to $8K, and the sum only depends on the car chosen.
For example, there’s a $500 discount for all Volkswagen vehicles. But if you pick Nissan Leaf, you can save $8K on the total price. The Uber car purchase program also offers tempting savings on Chrysler 300, Chevrolet Malibu, and Ford Fusion.
Is It Necessary to Become an Uber Driver First?
Yes, if you want to get a car with Uber discounts, you need to register as a driver first. The process of acquiring a vehicle is simple and comes down to these steps:
- Register on Uber by signing up.
- Access the Vehicle Marketplace to check the current vehicle discounts available.
- Get a discount code to use at a dealership when buying the car.
What If I Want to Sell or Trade-In My Old Car?
You might have an old car but want to buy a new one to drive for Uber. Perhaps the current model doesn’t meet the company’s demands. The platform doesn’t have an option to buy your old vehicle. That means you’ll need to sell it first and use the cash to get a car with Uber requirements.
The fastest way to sell an old car is online. You can visit different marketplaces and dealerships. Depending on the option, you can even come across an offer where you’d give your old car and pay extra for a new model. Online marketplaces make everything much easier, so use the technology to your advantage to speed up the process.
If you want to buy a car through Uber, their Xchange could be an option. The company signed agreements with some car dealerships to offer short-term leases. The usual concept is they require a small down payment and weekly installments during the next three years.
Uber Xchange has some benefits, including:
- Unlimited mileage and no need to worry about paying extra after you pass a certain threshold.
- You get insurance and maintenance as part of the deal. However, you can only go to Uber-approved repair shops.
- It’s available even to people with poor credit.
Uber Xchange is a concept for those who plan to be full-time rideshare drivers. You’ll need to pay Uber driver taxes, but it’ll save money on insurance and maintenance.
However, Xchange doesn’t involve excellent financial terms. Monthly payments for leasing a car can be twice as much as when going to a licensed dealership. The problem is that dealerships require a good credit score. And a poor credit score won’t be a problem if you choose to get a car with Uber Xchange.
If you don’t like any of the Uber car purchase program options, how about using a rental service? Hyrecar is a rental service focused on rideshare drivers. You can connect with vehicle owners and use their cars while paying specific rates. The usual amounts are from $35 daily or $200 weekly.
Hyrecar doesn’t require a registration fee or any contractual obligation. If you feel like driving today, you rent a vehicle and do your job. Hyrecar is convenient if you don’t want to make a significant investment or don’t have other financial options.
Can You Get a Car Loan with Uber Income?
You can get a loan as an Uber driver. Most banks and lenders will check your credit score. Apart from a positive credit score, you need to be a registered rideshare driver spending their time in the USA legally.
The options vary on the provider selected. Some don’t have a minimum credit score requirement, but they usually offer higher interest rates. Depending on the rate, you could end up paying anywhere from 4% to 25% APR. If you choose this option, make sure you get a vehicle that meets Uber requirements.