# Replace car every year?



## Ericksol96 (Mar 14, 2018)

hi guys, I have been driving for 3 weeks now. I am making this full time. I’m 22 years old and trying to build a credit history so I can have great credit by the age of 24/25. Is it affordable to drive the same car for a few years in Uber? I got a Toyota Corolla S 2016 with 9,965 miles for 14,996. It has a clean title so I financed it. I know the depreciation in a car is very bad when you drive a lot. So my question is, let’s say I can sell the car for 12-13k in 2019.. is it worth it so that it doesn’t lose value as fast? And maybe finance another used car for the same price? I know I lose 2-3, maybe 4K but hey, it’s better than losing more that 5000 in a couple of uears. Thank you.


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## Adieu (Feb 21, 2016)

Ericksol96 said:


> hi guys, I have been driving for 3 weeks now. I am making this full time. I'm 22 years old and trying to build a credit history so I can have great credit by the age of 24/25. Is it affordable to drive the same car for a few years in Uber? I got a Toyota Corolla S 2016 with 9,965 miles for 14,996. It has a clean title so I financed it. I know the depreciation in a car is very bad when you drive a lot. So my question is, let's say I can sell the car for 12-13k in 2019.. is it worth it so that it doesn't lose value as fast? And maybe finance another used car for the same price? I know I lose 2-3, maybe 4K but hey, it's better than losing more that 5000 in a couple of uears. Thank you.


Horribly overpriced for rideshare


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## jgiun1 (Oct 16, 2017)

Dude, the first two years on any car loan is pretty much all interest first. You'll lose your ass trading in cars like that. 

And actually the payment HISTORY is the only thing helping your credit, not having 3 different car loans in three years.


You'll lose so much money on down payments, tax, interest and negative equity. You should of stuck to 10k and under car for this car killer business.

Your screwed if you finance a car and think your going to string along two or three different deals in the future and actually make out financially great....the world isn't like the show gas monkey garage.


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## Ericksol96 (Mar 14, 2018)

Well, it’s also my first (Bought) car. And it’s my daily driver so I wanted something slightly new and reliable. In the future. Also my family were going to help me with 6K, IF i got a car that was under 10-15 thousand miles and still under warranty. And oh I see, but what if I like sold the car In 2019, and got another car and I just finance like 6-10 thousand?


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## jgiun1 (Oct 16, 2017)

Yep...and go like 2 -2.5 year loan....try to buy clean car under 30k miles about 10k or cheaper for rideshare.

It's like credit cards man...raising credit score is a slow methodical system. Try and get two or three cards, keep balances really low, like for gas, snacks... Rotate around using them and pay them off every month and watch your credit score soar up by the time your 25.

My car now is under 65k miles and will be paid off by next April....have warranty and gap insurance included.....just always make sure you pay the payments on time (credit cards and cars) one miss or late could hurt the whole process.....you want 100% perfection playing the credit game.


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## steveK2016 (Jul 31, 2016)

Ericksol96 said:


> hi guys, I have been driving for 3 weeks now. I am making this full time. I'm 22 years old and trying to build a credit history so I can have great credit by the age of 24/25. Is it affordable to drive the same car for a few years in Uber? I got a Toyota Corolla S 2016 with 9,965 miles for 14,996. It has a clean title so I financed it. I know the depreciation in a car is very bad when you drive a lot. So my question is, let's say I can sell the car for 12-13k in 2019.. is it worth it so that it doesn't lose value as fast? And maybe finance another used car for the same price? I know I lose 2-3, maybe 4K but hey, it's better than losing more that 5000 in a couple of uears. Thank you.


How cute he thinks hell be able to sell (much less trade in!!! Hahaha) a 3 year old Corolla with 200,000 miles for 13k .

I sold cars for a living, aint gonna happen.

If You tried this 3 years ago, on a 2015 and sold it today with 200,000 miles, it would trade in for $3000 at most. You'll be lucky to even get a low ball offer. That dealer aint gonna be able to resell that corolla with those miles unless you are buying from a buy here pay here place . no big brand dealer will sell that on the lot and no lender that offers less than 29% interest financing will ever under write a loan on a vehicle with that many miles.

It might sit in the bullpen for a week in case a poor sucker walks in with a 400 credit score and 50% down payment and has someone at Santander that owes them a favor... otherwise, it goes to the auction.

If a dealer offers you anything for a corolla with 200k on it, the best they will do with it is sell it at an auction to hopefully break even after fees. If they dont feel they can do that, they'll probably load up the front end of your vehicle you are buying to balance it out.

And if You think you can live full time driving on any less than 100k miles a year and you are delusional unless you live in San Fransisco, which is one of the only truly profitable market these days.

Unless You are living rent and bill free in your moms basement...

If thats the case just save up and buy a car outright rather than have payments.


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## Ericksol96 (Mar 14, 2018)

Not 200,000. Let’s say 60k miles 2016 in 2019? For $10k?


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## NorCalPhil (Aug 19, 2016)

Find a cheap car, pay cash, drive it for a year, sell it, find a cheap car, pay cash, drive it for a year, sell it, find a che....


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## jgiun1 (Oct 16, 2017)

Ericksol96 said:


> Not 200,000. Let's say 60k miles 2016 in 2019? For $10k?


Full time you'll be 30-40k miles a year....you'll probably still owe $12000-$13000 range depending on years you took loan for the car out for (hopefully not 70 months) Bet about $11,500 to 12,000 private sale and about 8-9 trade in. You have to also assume it will have battle scars from this occupation ... Paint scratches, interior scratches, wheel rash.

Your theory really does work....that's what rental places do....buy cars, sell cars that are in mid mile range after 3 years and about 50-60 thousand miles....making triple the loot of value in rental income. The only difference, they buy in serious bulk, straight from manufacturers at dealer prices and pay them off with big checks, not loans. Sometimes leases straight from car maker, sometimes buying, they know exactly how to flip every car for profit.

The only difference is, you don't have a fleet, and certainly not buying cars in bulk from the big guns. The system is set up for the little guys to lose in every way and the big guys mostly always win.

Your credit score isn't going to rise in three years by having two car loans. To play the game you have to obtain credit and show history of payments ( trust me, apply for a couple cards when established) keep balance low and let the cards report 100% perfection and keep the balances low, like really low.


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## NorCalPhil (Aug 19, 2016)

jgiun1 said:


> Full time you'll be 30-40k miles a year....you'll probably still owe $12000-$13000 range depending on years you took loan for the car out for (hopefully not 70 months) Bet about $11,500 to 12,000 private sale and about 8-9 trade in. You have to also assume it will have battle scars from this occupation ... Paint scratches, interior scratches, wheel rash.
> 
> Your theory really does work....that's what rental places do....buy cars, sell cars that are in mid mile range after 3 years and about 50-60 thousand miles....making triple the loot of value in rental income. The only difference, they buy in serious bulk, straight from manufacturers at dealer prices and pay them off with big checks, not loans. Sometimes leases straight from car maker, sometimes buying, they know exactly how to flip every car for profit.
> 
> ...


Exactly... and you can get a low-mileage newer car from Hertz or other outfits for below KBB. It's a great option.

Credit cards... keep balances under 5-10% of available credit and pay off every month. Credit is overrated - just pay cash for stuff. If you don't have cash... you can't afford it! (mortage being the exception)


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## steveK2016 (Jul 31, 2016)

Ericksol96 said:


> Not 200,000. Let's say 60k miles 2016 in 2019? For $10k?


How cute, he thinks he'll put on 20k a year driving full time Uber.



jgiun1 said:


> Full time you'll be 30-40k miles a year....you'll probably still owe $12000-$13000 range depending on years you took loan for the car out for (hopefully not 70 months) Bet about $11,500 to 12,000 private sale and about 8-9 trade in. You have to also assume it will have battle scars from this occupation ... Paint scratches, interior scratches, wheel rash.
> 
> Your theory really does work....that's what rental places do....buy cars, sell cars that are in mid mile range after 3 years and about 50-60 thousand miles....making triple the loot of value in rental income. The only difference, they buy in serious bulk, straight from manufacturers at dealer prices and pay them off with big checks, not loans. Sometimes leases straight from car maker, sometimes buying, they know exactly how to flip every car for profit.
> 
> ...


No way a full timer is only doing 30k a year. They may only be driving Uber as their only job but not a full, living wage earning job. At $0.60 a mile in many markets, people flipping burgers are probably earning that much once you take costs into account.


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## FrankLStanton (Oct 18, 2016)

You will do better financially by saving a certain amount every week for future repairs and just keeping the car to end of term. Your credit will benefit and more importantly your pocket will benefit. To help your credit faster, get a secured credit card that reverts to a savings account after a year or two and pay all business expenses with it. Show steady payments every month, in full preferably. After that year or two, you will end up with a savings account and credit!


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## njn (Jan 23, 2016)

Ericksol96 said:


> I got a Toyota Corolla S 2016 with 9,965 miles for 14,996.


No, you can't sell a car for more next year than it's current value unless it's a collector car.

A 2016 corolla s trade in right now is 11,000. A 2015 corolla s trade in with 40000 miles is 9,000. Sales tax, a year and miles, you down 7,000.


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## Skorpio (Oct 17, 2017)

Next time dont buy a S engine..
You need to buy gas the cheapest that you can.. so you can see profits..


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## Dude.Sweet. (Nov 15, 2016)

Ericksol96 said:


> Not 200,000. Let's say 60k miles 2016 in 2019? For $10k?


Just to put things in perspective, I drove part time just Friday and Saturday nights for a year and put 30k extra miles on my car. So if you are full time think of it as you are gonna put 75k if you do five days a week, and then the normal 15k a year that you drive it on your own, so that's 90k miles in a year. Your best bet is to drive for two years, pay off the car completely, then drive it till the wheels fall off and save every penny and buy a used car for less than 10k next time. And when you make your payments now, pay additional principal on each payment.


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## thatridesharegirl (Jul 7, 2016)

3 weeks and you're ready for FT? Welcome. Please be aware that if you've been making $X.XX per hour during PT busy hours, understand you'll be making less during some of the non-busy FT hours.

Though maybe irrelevant/inaccurate: many drivers concur that new account drivers get served better pings by the algorithm for some length of time. Maybe its paranoia, maybe not.

Every 'new' driver I hear from on this forum hasn't done FT Uber for 6 months and really evaluated their finances critically but is already planning on purchasing their next car.

This is coming from a good place: please do your math more thoroughly and research kbb and depreciation. Because your assumptions look optimistic and deluded. Don't get yourself into debt on the gamble that Uber will make you $$$. Enough vet drivers here will tell you - after a year of 120 rides a week you will be sore, lonely, and broke.

FT you WILL put 50k+ miles on your car PLUS PERSONAL MILES.
Don't make plans on the money you think you'll make. If you buy a car for Uber PAY IN FULL and make sure its cheap and reliable.

If you're dead set on the gamble, it sounds like your best bet is driving your current whip into the ground, while paying it off as fast as possible because you'll need to replace it sooner than you think. Make sure you have rideshare insurance. Good luck.


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## streetkings01 (Sep 28, 2017)

thatridesharegirl said:


> 3 weeks and you're ready for FT? Welcome. Please be aware that if you've been making $X.XX per hour during PT busy hours, understand you'll be making less during some of the non-busy FT hours.
> 
> Though maybe irrelevant/inaccurate: many drivers concur that new account drivers get served better pings by the algorithm for some length of time. Maybe its paranoia, maybe not.
> 
> ...


Good advice. Last October I purchased a 2005 Nissan Quest for $2400........put about $1000 into it and using it 90% for Uber/Lyft & 10% personal.


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## JTTwentySeven (Jul 13, 2017)

Just keep the car, rack it up to 150,000 miles and get rid of it. There's no way you'll make a "profit" now off your car if you want to sell it.


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## Rachel Merrow (Mar 27, 2018)

Hey, I agree with you JTTwentySeven, this is a really great idea.


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## whiskeyboat (Oct 14, 2017)

Unless you absolutely love doing rideshare get a real job and do this on the side. A real job builds experience and skills, and you read like a guy who is thinking about his future. There is no future being a full-time rideshare driver. It is a wonderful side gig and I like it a lot but on its own it is a dead end.

I do not mean this as disrespect for full-time drivers, if you love the road and are making it work then keep at it. I am only giving the OP advice about his financial future since that seems to be his concern.


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## thatridesharegirl (Jul 7, 2016)

whiskeyboat said:


> Unless you absolutely love doing rideshare get a real job and do this on the side. A real job builds experience and skills, and you read like a guy who is thinking about his future. There is no future being a full-time rideshare driver. It is a wonderful side gig and I like it a lot but on its own it is a dead end.
> 
> I do not mean this as disrespect for full-time drivers, if you love the road and are making it work then keep at it. I am only giving the OP advice about his financial future since that seems to be his concern.


No disrespect taken. I'm a FT driver and I cry myself to sleep at night because after a full day of driving I only have the energy to play World of Warcraft, not build more marketable skills.


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