So, you’re looking to get in on this new Uber or Lyft craze, huh? Maybe you hired an Uber once and enjoyed the concept. Or, you’re just looking for a second way to make some easy dough. Well, it’s first important to note there are regional vehicle standards that your car would have to meet if you wanted to drive for Uber and Lyft. But, you can look those up easily online after. That’s not what I’m here to talk about. Yes, I’m still going to tell you the type of car you’ll need; but, it’s the type of car you’ll need to not just succeed as an Uber or Lyft driver, but eventually, start making a profit.
Let’s start with the price range you should spend.
How Much Should I Spend?
I’m not knocking the programs — I think they’re great — but you should know that you aren’t being paid like a king or queen. Most rideshare drivers make $14 to $16 an hour on average, which isn’t a whole lot to work with. Especially if you’re trying to get into the game, and have to purchase another vehicle to do it. At first, all the money you make driving will be going towards paying off that vehicle you just bought, which is the way it should be. Save your main source of income for the house, bills, family, etc.
Since you only get $14 to $16 an hour and you want to use that to pay off your car, what type of car should you get? Used. Why? Because used vehicles are cheaper and suit the needs of what you’re looking for just fine.
You’ll want to spend anywhere from $10,000 to $12,000 in order to make this happen. Don’t spend anything massive, nor should you (ideally) make a purchase just for Uber or Lyft. Wait until you need a new-for-you car in your driveway, sell your other one or pawn it off on your teenager who’s been begging you for the keys, anyway. Now, you aren’t stuck paying for two cars.
A used vehicle priced anywhere around $10,000 to $12,000 will do the trick. No need to stress over weekly rental payments or an expensive lease or car loan. That would end up causing more than the price of a used car, and possibly more than what your Uber or Lyft paychecks would cover.
All you need to do is factor in the expense of vehicle depreciation, along with rideshare insurance.
The Type of Car You Need
“But, what used car can I get for $10,000 to $12,000 that will be appealing to myself and others?” Good question. Here’s my answer…
Firstly, I think you underestimate how much $10,000 to $12,000 actually gets you in the used car world. If you go on Craigslist just to poke around, you’ll see a lot of older vehicles from the ‘90s, with over 100K miles on them, sold for anywhere between $1,000 to $2,000. Based on that alone, it should be clear that you can actually get a lot with $10,000 – $12,000, especially if you go to a dealership.
Secondly, the world of used cars is a huge place. Far vaster than the new car market. So, you’re bound to find something.
The make and model you want is easy to find. If you have a brand preference, start there. If not, then buy a reliable and fuel friendly sedan. You can nab yourself a nice 2013 Toyota Corolla or a 2014 Volkswagen Jetta for around $10,000 to $12,000, which is the type of car ideal for your new ride-share gig.
The fuel-efficiency will help you spend less on gas and more on paying off your used car. The reliability will ensure nothing breaks in the first week of ownership. Do this, and you’ll pay off that car in no time, eventually reaping the rewards of that $14 to $16 an hour of easy driving.