# How Much Does it Really Cost to Drive Your Car for Uber and Lyft?



## Heisenburger (Sep 19, 2016)

What did he get right here?

What did he get wrong here?

How Much Does it Really Cost to Drive Your Car for Uber and Lyft?


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## Classified (Feb 8, 2018)

What he got wrong is you shouldn’t be using a brand new car for Uber. And you should never lease or get a loan to do Uber.

a brand new car loses 2/3rds its value in the first 5years. Reason I buy a 5year old car, at 1/3rd the cost of new,and no loan. So no loss in paying interest.


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## 25rides7daysaweek (Nov 20, 2017)

Heisenburger said:


> What did he get right here?
> 
> What did he get wrong here?
> 
> How Much Does it Really Cost to Drive Your Car for Uber and Lyft?


Well you sure need to be driving a fuel efficient dependable car.
my first one was a Nissan Versa 2015 cost $12k
i put 200k miles on it and got $3000 for it
so it cost me 9k to have that car for 3 years
i put a transmission for 3k
total front end rebuild for 1k
electric fan for 400
windshield 200
3 sets of tires 1400
brakes were 500
oil changes 700
so about 16,200 
for the car and maintenance repairs
5.500 a year doesn’t sound too bad for a car 
that ran 10 hours a day 7 days a week
at that time fuel was running about 10%
in those first 3 years I made 225k
i wrote off 160k @.58 a mile=92,800
the amount of money that I didn’t pay taxes 
on far more exceeded the cost of the car
the downtime from getting the car fixEd
costs me more $$$ than the repairs themselves
i expect similar ## for car costs out of my current corolla
less money on repairs more on fuel…..


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## Disgusted Driver (Jan 9, 2015)

Right: adding in the fixed costs like insurance registration and taxes.
Wrong: even mentioning the IRS rate. It's relevant to reducing your income as a deduction, not figuring expenses. The IRS number is based on a lot of assumptions that don't fit our situation. If it costs you 55 cents or whatever it is a mile right now, then you better be driving Uber Black or you aren't doing well. 

I like the AAA methodology but as @Classified mentioned, using a new financed car is a road to ruin if you are going to drive 20-30K a year. If you have the family car and are just doing 3-4 rides a week on the way to or from work then none of this applies to you anyhow so we can ignore them. Aside from my first RS vehicle, I've never spent more than 8K on a vehicle for Uber. I save up and have the cash to replace them when the time comes so no finance charges or payments. As a result my taxes and insurance are lower too. AAA operating costs are pretty close to spot on for me. The ownership costs are pretty far off for my situation, mine are closer to half of that.


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## OldBay (Apr 1, 2019)

Its impossible to _know_ your cost/mile of operation until you have actually driven the miles. Lets get that out of the way up front. When people develop a complicated formula to determine their cost/mi, they are only just guessing. It depends on the number and frequency of repairs. 

My estimate is pretty simple: Cost of the car and repairs/maintenance amortized over the expected mileage of the car.

My car cost 10K @ 65K miles. I anticipate the car will get 200K miles before it needs engine/transmission work. By that point it will probably be aged out.

Over the remaining 135K miles, I will need two sets of tires (1200), and repairs probably around 2K in parts (as I do the work myself). This is enough to cover all the suspension components done once, two brake jobs, and a couple major components like AC compressor, water pump, and starter (and some minor ones like fuel injectors, master cylinder, radiator, etc) and a ton of fluid/filter changes. So my total estimated cost is 10K + 2K + 1.2K = 13.2K.

*13.2K / 135K = .098c/mi.* My costs are no where near what the government gives you in mileage deduction. The car may need more than 2K in parts to repair, but then so too will I probabaly get some cash back when I sell. I think this estimate is legit.

If I did this gig in a new car, spent $30K up front, with anticipation of driving it 200K miles, repair costs will still be the same, and it will still be worth the same at end of life. Also, if I can't do the repairs myself, the cost of repairs quadruples (labor and parts cost more). And if car is financed, total cost is even more.

30K + 4k (finance charges) + 8K + 1.2K = 43.2K

*43.2K / 200K = .216c/mi * The cost per mile doubles. If you couple that with a bad market where you aren't making at least $1/mi gross, you shouldn't be driving Uber.

Absolute worst scenario is someone who does it with a new car and only drives 75-100K miles before trading it in. That is probably where the government mileage deduction comes from.


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## ObeyTheNumbers (7 mo ago)

Don't spend more than $20,000 for your vehicles. And have two of them.


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> Don't spend more than $20,000 for your vehicles. And have two of them.


For UberX or UberEATS, I always recommend under $6k... seriously. At least at pre-pandemic pricing. At that price point, it's most likely to be 80% depreciated (model and year dependent), yet unlikely to leave you stranded as long as you keep close tabs on its parts/systems every 5k miles.


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## OldBay (Apr 1, 2019)

Disgusted Driver said:


> If you have the family car and are just doing 3-4 rides a week on the way to or from work then none of this applies to you anyhow so we can ignore them.


Actually, these kinds of trips are the most deceptive. If you legit work the car 200K+ miles, then those trips cost/mi are not any more expensive than for any workhorse.

However, if you trade in the family car at 60-100K miles, the cost per mile of those trips is quite high.


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## Ted Fink (Mar 19, 2018)

anyone wants to figure their own out AAA has a brochure that walks you through it



https://newsroom.aaa.com/wp-content/uploads/2021/08/2021-YDC-Brochure-Live.pdf


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## Heisenburger (Sep 19, 2016)

OldBay said:


> If you legit work the car 200K+ miles, then those trips cost/mi are not any more expensive than for any workhorse.


This is why I bought my current ride at 11 years and 170k miles. Virtually zero depreciation. And just $0.07/mile operating cost (excluding fuel) means it's been a winning horse.


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## OldBay (Apr 1, 2019)

Heisenburger said:


> This is why I bought my current ride at 11 years and 170k miles. Virtually zero depreciation. And just $0.07/mile operating cost (excluding fuel) means it's been a winning horse.


Sadly some of us work in 10 year markets and cant use those cars.


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## Heisenburger (Sep 19, 2016)

OldBay said:


> if you trade in the family car at 60-100K miles, the cost per mile of those trips is quite high.


Same if it gets totaled in a collision before you wanted to retire it.


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## ObeyTheNumbers (7 mo ago)

.62 cents a mile + .10 cents a mile for other costs.

Divide what (Uber pays) by the (miles to pax + pax miles).

Subtract .72 cents and that's your (profit per mile)

Your (pay) is (profit per mile*(miles to pax + pax miles))

Your (per hour wage) is (pay/(time to pax + pax time))*60 Time is in minutes.

Now yes, one can lower their vehicles CPM by buying a fuel efficient one, however if it doesn't last as long as one that is less efficient with a stronger engine, then the replacement costs are going to be higher as it's working much harder.

Also one has to figure on accidents occurring, have money to recover and buy another vehicle quickly for cash.

Typical Ubering is about 85-100,000 miles a year. So in 3.5 years or 300,000 miles likely time for a new one. Trucks or big SUV's can go about 500,000 miles.

IMO the best all around choice would be a used semi rugged midsize SUV (with doors) under $20,000, seats 6 + luggage rack. Third row for 3 pax. Seats fold flat, second row captains chairs and remove second row center console. 6 or 8 cylinder. Then have two of them if possible.

So for a six seater, second row bench or captains chairs? Third row split of course. What do you think?


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## Ted Fink (Mar 19, 2018)

ObeyTheNumbers said:


> .62 cents a mile + .10 cents a mile for other costs.
> 
> Divide what (Uber pays) by the (miles to pax + pax miles).
> 
> ...


I know this has been said before but if your costs really are 72c a mile, unless you're in a high paying market, you are making nothing. Or even losing money.

MY costs are 25c a mile. All inclusive. 

I don't want to debate you on what YOUR costs are - you know that better than anyone. But I would throw out there for anyone reading this - all of us have different costs per mile and the takeaway, if anything, is for each person to calculate your true costs for yourself (and it doesn't matter what anyone else's costs are), because if you know your own true costs then you can determine if you are really making a profit over the long term.

Only ONE thing I'll take issue with on your personal calculations @ObeyTheNumbers - you've detailed your costs out many times in many threads and one thing you're including is saving for a replacement vehicle. Not saying that is wrong, per se, and it works for you, but note that you are counting all the costs of your current vehicle AND some of the costs of a vehicle you haven't purchased yet or used yet against the miles you are currently driving. So you are counting higher costs than those you are currently incurring. Which again, is fine for you and makes sense to you in the way that you do things, but it may get others confused.

Simply put... you are not currently SPENDING money on a vehicle you haven't purchased yet. But you are SAVING money for that eventuality. Which is a good thing.


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## ObeyTheNumbers (7 mo ago)

Ted Fink said:


> I know this has been said before but if your costs really are 72c a mile, unless you're in a high paying market, you are making nothing. Or even losing money.
> 
> MY costs are 25c a mile. All inclusive.
> 
> ...


It's called depreciation.

And yes one has to save their current vehicles depreciation + money for another vehicle in case of and accident + covering the costs of president induced inflation. 😁

My vehicle is on its last legs with over 445,000 miles, I have $60,000 saved up for a newer one.

You guys all tout this low CPM, even lower than the AAA average and the IRS, it's not realistic. Pax don't want to ride around in a beat up old shitbox that spends half of it's time in the shop, pax will downvote the hell out of the driver if driver not able to take them when they want. Not only that, the low CPM is for burning out present vehicle and deceives readers when they have nothing to replace it with.

My vehicle, despite being 8 years old, looks dam near new. It's a clever choice of vehicle make and model combined with lots of TLC. It gets me trips because pax thinks it's a newer vehicle. Also it's spacious and comfortable. Pax call me before calling Uber. 😆

My truck $30,000 worth $20,000 when starting Uber, likely will go the full 15 years before Uber retires it. ,😁 Still worth $10,000 according to Kelly BB.

I have nearly no costs until I drive it, unlike a rental, lease or loan. She is free and clear. 🥳

You may be stating your numbers but there are many that read and disappear. Get the wrong impression.

Sure if I go out and steal a car, run it through DMV and clean it, start Ubering with it, steal all my gas, sure my CPM would be a lot lower than yours, but is it realistic? Of course not. Just saying. 🤠


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## Ted Fink (Mar 19, 2018)

@ObeyTheNumbers let me repeat for emphasis, I think it's a great idea to save for the replacement car. You should be commended for that and you are planning ahead wisely. I just don't think that most readers on this forum would think of that in terms of operating cost of their current vehicle. But aside from the way different people look at their numbers, it's definitely something we should all do and would save us $$$$$ on interest.


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## Ted Fink (Mar 19, 2018)

ObeyTheNumbers said:


> It's called depreciation.
> 
> And yes one has to save their current vehicles depreciation + money for another vehicle in case of and accident + covering the costs of president induced inflation. 😁
> 
> ...


Depreciation IS part of the cost of the current car. Saving for a future car is a good thing, but it's not a cost associated with the current car.


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## ObeyTheNumbers (7 mo ago)

Ted Fink said:


> Depreciation IS part of the cost of the current car. Saving for a future car is a good thing, but it's not a cost associated with the current car.


Look now, 8 years later since I bought my $30,000 vehicle with 15,000 miles on it, same frigging vehicle type is now dam near $60,000, twice as much.

It's called inflation.

And really one can't get an accurate CPM on their vehicle until they retire it. Right?

What if my vehicle makes it another 7 more years, racks up 800,000 miles, would send the CPM very low right?

Thing is you don't know the future, an accident can occur tonight and total the vehicle and then that's ones CPM.

Biden can blow up the gas again and then that shoots the CPM through the roof.

If one plans to die in the accident, then they use your view of the numbers.

Prepare for the worst, the good will take care of itself.


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## Ted Fink (Mar 19, 2018)

ObeyTheNumbers said:


> Look now, 8 years later since I bought my $30,000 vehicle with 15,000 miles on it, same frigging vehicle type is now dam near $60,000, twice as much.
> 
> It's called inflation.
> 
> ...


Again, I agree with your thinking. I just look at it as a separate cost and don't associate it with the current vehicle.

Can't make it any plainer than that. We're basically having a long debate over semantics. We both agree that that cost (of replacing) should be in your thinking, but we count it in different columns.

That's all I have to say.


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## ObeyTheNumbers (7 mo ago)

Ted Fink said:


> Again, I agree with your thinking. I just look at it as a separate cost and don't associate it with the current vehicle.
> 
> Can't make it any plainer than that. We're basically having a long debate over semantics. We both agree that that cost (of replacing) should be in your thinking, but we count it in different columns.
> 
> That's all I have to say.


The problem is the vague term of Cost Per Mile, it's open to debate of what is included or excluded.

If just current vehicle cost and gas, two of the largest, then sure low figures like .25 and .35 cents a mile apply. But it's misleading to others.

Due to inflation and other factors, one is not going to be able to replace ones vehicle in the future with a similar type vehicle with those numbers.

Perhaps a better term would be Cost of Doing Rideshare Per Mile, which .72 cents a mile is a closer rough estimate.


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## painfreepc (Jul 17, 2014)

Welcome to the world of uber (rideshare) clowns, where many drivers think driving a car for business should be free,
but many of the same drivers would drive 20 to 70 miles to a normal job at 5 days per week that would be
866 to 3,031 per month or 10,392 to 36,372 per year and that don't include any personal miles
(4.33 weeks in a month, Not 4)

i live in the inland empire calif, i don't know anyone that drives from the IE to LA, Long Beach, OC
thats says "i only make $This$ becuase i drive this many miles to and from work.

i drive uber 7+ years i can pay my bills and have some money in the bank, like any other job.


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> a fuel efficient one, however if it doesn't last as long as one that is less efficient with a stronger engine, then the replacement costs are going to be higher as it's working much harder.


That rationale has long been demonstrated to be urban legend and myth.


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> Due to inflation and other factors, one is not going to be able to replace ones vehicle in the future with a similar type vehicle with those numbers.


Of course, equipment costs in every business rise over time because of *constant* inflation. Was someone here arguing against what you're arguing for? Who?


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> Typical Ubering is about 85-100,000 miles a year.


*Definitely* atypical.


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## Heisenburger (Sep 19, 2016)

Ted Fink said:


> Only ONE thing I'll take issue with on your personal calculations @ObeyTheNumbers - you've detailed your costs out many times in many threads and one thing you're including is saving for a replacement vehicle. Not saying that is wrong,


Then* I'll* say that it's wrong.  Ask any accounting college professor, tax accountant or IRS audit agent.


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> I have $60,000 saved up for a newer one.


For rideshare or delivery? 😯

Then you're absolutely doing it wrong...very wrong. 😥


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## Ted Fink (Mar 19, 2018)

ObeyTheNumbers said:


> The problem is the vague term of Cost Per Mile, it's open to debate of what is included or excluded.
> 
> If just current vehicle cost and gas, two of the largest, then sure low figures like .25 and .35 cents a mile apply. But it's misleading to others.
> 
> ...


You're right - cost per mile means different things to different people - or we wouldn't be having this debate to begin with.

I think the important thing for you, for me, and for all the other drivers, is to understand our costs clearly (no matter which category you choose to put them in - that's a matter of style, I suppose) but having a clear idea of what the expenses are and therefore whether or not one is profitable is the important concept for all drivers.


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## Heisenburger (Sep 19, 2016)

I think it's reasonable to conclude that the most expensive single rideshare or delivery vehicle wouldn't have costs exceeding that of the least expensive tractor trailer.



> A good rule of thumb can be around 1/3 of the gross earnings for an owner operator’s wage paid to himself.


How to Calculate Owner Operator Trucking Cost Per Mile


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## Heisenburger (Sep 19, 2016)

@ObeyTheNumbers



ObeyTheNumbers said:


> or .75 cents a mile.





ObeyTheNumbers said:


> With my 75 cents a mile costs





ObeyTheNumbers said:


> I used the new .75 cents a mile costs





ObeyTheNumbers said:


> my costs are .75 cents a mile





ObeyTheNumbers said:


> operating costs are typically .75 cents a mile for everything.





ObeyTheNumbers said:


> that my costs are .75 cents a mile


We're all waiting for the grand vehicle reveal! Inquiring minds wanna know the subject vehicle! Whatcha got in that garage when you're not ragging it out down in da hood?


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## Heisenburger (Sep 19, 2016)

ObeyTheNumbers said:


> Now yes, one can lower their vehicles CPM by buying a fuel efficient one, however if it doesn't last as long as one that is less efficient with a stronger engine, then the replacement costs are going to be higher as it's working much harder.


Where does the harder working - shorter life meme originate?

Mine is currently a 4 cylinder 2.0 gas engine with 255k miles and it's 14 years old. Bad or Good?



> The 2.0-liter Duratec engine looks preferable compared to the 1.8-liter engine. It consumes the same amount of fuel, but the engine itself is more powerful, quieter, has more torque. The engine has a timing chain (not belt). There are no hydraulic tappets/lifters in the engine. Engine life of Duratec HE 2.0 is about 220,000 miles, but in practice, you can find cars equipped with that engine which has mileage more than 350,000 miles. The new Duratec HE GDI Ti-VCT replaced this engine in 2010. But we will remember the Duratec 2.0 engine as reliable, durable, the best of all Duratec engines.
> 
> 
> 
> ...


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## Stevie The magic Unicorn (Apr 3, 2018)

The camry I drive for uber taxi is $76 + gasoline per day


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## elelegido (Sep 24, 2014)

Heisenburger said:


> What did he get right here?
> 
> What did he get wrong here?
> 
> How Much Does it Really Cost to Drive Your Car for Uber and Lyft?


There was too much fluff, filler, padding and repetition in the article. Couldn't be bothered to past the first few paragraphs.


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