# Noobie question, buy vs lease



## fredfighter (Sep 28, 2018)

I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.

The question is, particularly considering taxes, which is better -- buying or leasing?

Assuming the vehicle is used exclusively for Uber/Lyft:
If I buy, do I get to depreciated by 30% per year, or would any other tax deduction be applicable?
If I lease, do I deduct the payments from my taxes?

Other considerations?


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## Texie Driver (Sep 5, 2018)

there are a number of threads on this topic here. the search box is in the top right.


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## oldfart (Dec 22, 2017)

I believe most drivers use the standard milage deduction and depreciation is built into that

You can deduct actual expenses including depreciation but I dont know the irs rules regarding accelerated depreciation

Just understand you can’t flip back and forth on this. It’s either the standard deduction or actual expenses for as long as you use this car in your business

I think conventional wisdom here is don’t buy a new car for rideshare. Speaking only for myself I would be looking for something about 5 years old and 50000 to 100000 miles and then plan to run the wheels off it I would also be looking for a car that qualifies for X and one or more of the better paying classifications

And know this, if you do this full time you will be looking for another car in just a few years. Be prepared for that expense when it comes


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## SuzeCB (Oct 30, 2016)

Leasing within a deal with U/L will cost you a bundle, and you'll be chasing your tail trying to make sure there's enough in your "Uber account" foe the payment to be taken out each week.

Leasing outside a deal with U/L will exclude using the vehicle for U/L. The vehicle won't be approved because of it.

Buy.


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## Seamus (Jun 21, 2018)

SuzeCB said:


> Leasing within a deal with U/L will cost you a bundle, and you'll be chasing your tail trying to make sure there's enough in your "Uber account" foe the payment to be taken out each week.
> 
> Leasing outside a deal with U/L will exclude using the vehicle for U/L. The vehicle won't be approved because of it.
> 
> Buy.


^^^^^^^^ What SuzeCB said. Plus if you do a standard Honda Lease and hide the rideshare you will blow way over the mileage making it extremely costly to you. "BUY" but find an appropriate used car in the 2010-2014 model year. Especially knowing 96% of newbies don't last a year.


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## NOXDriver (Aug 12, 2018)

Seamus said:


> Especially knowing 96% of newbies don't last a year.


This needs to be a pop up everytime someone with less than 20 posts starts a topic.

No, don't go $15-20k in debt for the shitty profits you might earn.

Also *96% of Uber drivers quit in the first year.
*
What part of 96% failure rate makes you think that you are going to pay off a car (which you probably got on a 6 year loan).


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## fredfighter (Sep 28, 2018)

NOXDriver said:


> This needs to be a pop up everytime someone with less than 20 posts starts a topic.
> 
> No, don't go $15-20k in debt for the shitty profits you might earn.
> 
> ...


 The 4%.

You may also not have inferred that I need a newer car.

I have read that the typical driver nets less than two dollars an hour. I have also read that the typical driver that's between 18 and $20 an hour.

One individual said he was happy to gross $100 in six hours time, another said he typically grossest $300-$400 in 12 hours time .

It looks like what one can expect is highly variable based on location, and the driver's approach.

I think I will take a couple of Uber rides, just to talk to the drivers.


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## Seamus (Jun 21, 2018)

fredfighter said:


> The 4%.
> 
> You may also not have inferred that I need a newer car.
> 
> ...


It's a good idea to talk to some drivers, here's what I would caution you on though. Many experienced drivers have found drivers that either straight out lie to their passengers or greatly exaggerate. To get the straight scoop when you get a ride make sure your driver has over a 1000 rides and has been doing it a while. This way you can get the straight scoop from someone who has successfully lasted.

It's all highly variable, you just want the realistic information. Also, much different full time vs part time.


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## fredfighter (Sep 28, 2018)

Also, is the 96% figure a true failure rate, or just the dropout rate? I can imagine many people buying a new (to them) used car and driving Uber to pay for it. Don't know how many could within one year though.


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## steveK2016 (Jul 31, 2016)

Is your element older than 2003?

If not, give U/L a try now when you have a cheap car. You dont want to get a car note to do U/L then find out its not very profitable in your market or you hate it.

You can always buy a new car and replace the Element if you feel its worth continuing.


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## fredfighter (Sep 28, 2018)

Also said:


> Of course the number of hours spent driving would affect income. But did you mean the hourly rate tends to be different for part time vs full time drivers?


I could do this full-time, up to say, 60 hours/week, and can pick my times for whenever /where ever there is the most business in the DC/Balmore area.

So it looks like if I am going to do this, the way to go is to find a 'certified pre-owned' economy car for $10 -$12k. With a reasonable down payment the monthly payments for a 36 month loan should be around $250/month. Have to check on insurance costs both if I do or do not sell my current vehicle (which I would like to keep for the cargo capacity). At worse, 20 hours or so driving time should gross enough to cover payments and insurance

The big risk would be major mechanical failure that totals the car.


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## UberBeemer (Oct 23, 2015)

For what it is worth, if you shop carefully, you can find a good preowned car for a great price. My tendency it to buy outright, with cash. No payments, unless i purchase a third party extended warranty. And, learn how to do basic maintenance. Brakes are usually very easy to replace, for example.

My goal is to reduce the number and amount of regular monthy payments i have, so i am not tethered to a treadmill.


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## Texie Driver (Sep 5, 2018)

fredfighter said:


> I could do this full-time, up to say, 60 hours/week, and can pick my times for whenever /where ever there is the most business in the DC/Balmore area.
> 
> So it looks like if I am going to do this, the way to go is to find a 'certified pre-owned' economy car for $10 -$12k. With a reasonable down payment the monthly payments for a 36 month loan should be around $250/month. Have to check on insurance costs both if I do or do not sell my current vehicle (which I would like to keep for the cargo capacity). At worse, 20 hours or so driving time should gross enough to cover payments and insurance
> 
> The big risk would be major mechanical failure that totals the car.


the big risk is depending on Uber for income

signed,
91 trips on the books and locked out of the app


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## New2This (Dec 27, 2015)

fredfighter said:


> Other considerations?


Since you're in my market (D.C. area) I'll give you the biggest consideration: Uber recently launched "Charlotte Surge" in our market, replacing the old Surge multiplier. It sucks a big one.

It's cut earnings significantly. I have a very methodical system I use on Uber for getting longer Surge rides. I used to average $25-$35/trip. Now it's $20-$25/trip. Big events and FedEx Field events are way less lucrative than before.

Read the D.C. Board to see how people are working harder to make the same money.

I would get a cheap 2009 Camry/Corolla (qualifies in MD/DC/VA) and drive the shit out of it.

DON'T buy a brand new car for this shit. Period.

We have Meetups, usually in Shirlington (birthplace of the Shirlington Shuffle) snd I think the next one will be second week of October. Come to one.

Also I have a guy that does my insurance as well as several other UPNet members. Feel free to contact me for his info. You need rideshare coverage on your auto policy.


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## melusine3 (Jun 20, 2016)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


Just don't ever buy a new car for this gig. At some point (lots of arguments here) they want to get rid of you altogether and go driverless. If you car doesn't work for passengers, just do food delivery, if Uber won't work with you on that for UberEats, go GrubHub and Door Dash. Passengers generally trash the interior of your car because most DGAF, and food won't treat you like trash either.



fredfighter said:


> The 4%.
> 
> You may also not have inferred that I need a newer car.
> 
> ...


Take a ride with Uber drivers and they will tell you they make $$$$$ GREAT MONEY $$$$$ because they're hoping you'll sign on under their name and they'll get a bonus. Ask me how I know.... One of them I am certain is one of those who drives 12 hours a day 7 days a week, so yes, he's making "great money" but not likely after expenses.


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## steveK2016 (Jul 31, 2016)

melusine3 said:


> Just don't ever buy a new car for this gig. At some point (lots of arguments here) they want to get rid of you altogether and go driverless. If you car doesn't work for passengers, just do food delivery, if Uber won't work with you on that for UberEats, go GrubHub and Door Dash. Passengers generally trash the interior of your car because most DGAF, and food won't treat you like trash either.
> 
> Take a ride with Uber drivers and they will tell you they make $$$$$ GREAT MONEY $$$$$ because they're hoping you'll sign on under their name and they'll get a bonus. Ask me how I know.... One of them I am certain is one of those who drives 12 hours a day 7 days a week, so yes, he's making "great money" but not likely after expenses.


They're paying $10 for driver referral in Dallas. Lol.


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## fredfighter (Sep 28, 2018)

What is U/L?


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## oldfart (Dec 22, 2017)

fredfighter said:


> What is U/L?


 took me a while too

Uber/Lyft


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## Terri Lee (Jun 23, 2016)

fredfighter said:


> '''which is better -- buying or leasing?


(Forgive me, I was just watching "Charlie Wilson's War")

But seriously, I would hope everyone knew that leasing and high milage were a terrible mistake.


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## mbd (Aug 27, 2018)

You will go over your mileage limit in the first month...then you will end up paying 1.2 million dollars at the end of the lease.


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## oldfart (Dec 22, 2017)

mbd said:


> You will go over your mileage limit in the first month...then you will end up paying 1.2 million dollars at the end of the lease.


It won't be a million dollars but it will be a lot. Enough that it will be cheaper to just pay the residual and buy the car. Of course it will have 
A million miles on it by then

Well not a million miles either, but a lot. You will probably be better if buying a used car up front and forgetting financing or leasing


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## Broken Spoke (Mar 26, 2018)

Buy the cheapest decent car that fits the criteria. Anything probably 2007 or newer . I’m partial to GM because I can get them reasonably price and they work very well. I’m currently using a 2005 Buick Lesabre Because I got it cheap and it still a good car. But it will be ready for the scrapheap when I am done with it. Rideshare beat the ever loving shit out of the car


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## 1.5xorbust (Nov 22, 2017)

No one should ever spend more than $5k for a good used car to do this gig. Too many ways to get deactivated.


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## possibledriver (Dec 16, 2014)

Broken Spoke said:


> Buy the cheapest decent car that fits the criteria. Anything probably 2007 or newer . I'm partial to GM because I can get them reasonably price and they work very well. I'm currently using a 2005 Buick Lesabre Because I got it cheap and it still a good car. But it will be ready for the scrapheap when I am done with it. Rideshare beat the ever loving shit out of the car


. The motor in the LeSabre might last forever .They're known to last a few a few hundred K miles. That engine was launched in 1962 
and was so successful that over 25 million were built. I wish I hadn't sold the Delta 88 I had with the same engine


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## fredfighter (Sep 28, 2018)

oldfart said:


> took me a while too
> 
> Uber/Lyft


Can't be. He suggested that if my Element was newer than 2003 I should try U/L. The last time I checked with Uber and Lyft (in 2013) Uber required that vehicles be no more than five years old. While Lyft accepted vehicles that were up to 10 years old, they did not accept Elements. Recently an Uber driver told me that Uber would now accept vehicles up to ten years old. My car is 13 years old.

So unless the criteria have changed again, I can't 'try'either with my Element.

Do I have out-of-date-information?

I have never looked into leasing contracts for any purpose, nor have I ever been in a position to claim business expenses as an income tac deduction. -- that is why I posed the question here.

Please do rest assured that have been thoroughly convinced that it is not the way to go.



1.5xorbust said:


> No one should ever spend more than $5k for a good used car to do this gig. Too many ways to get deactivated.


I don't see how anyone can find a working used car that is new enough to qualify for Uber/Lyft for as little as $5k. At least not one that was a bit too warm ...

Where would you find one?


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## steveK2016 (Jul 31, 2016)

fredfighter said:


> Can't be. He suggested that if my Element was newer than 2003 I should try U/L. The last time I checked with Uber and Lyft (in 2013) Uber required that vehicles be no more than five years old. While Lyft accepted vehicles that were up to 10 years old, they did not accept Elements. Recently an Uber driver told me that Uber would now accept vehicles up to ten years old. My car is 13 years old.
> 
> So unless the criteria have changed again, I can't 'try'either with my Element.
> 
> ...


Some markets allow 2001 vehicles

Uber Maryland allows 12 year old vehicles, 2005 or newer so you did miss the cutoff in your market. Should have jumped on sooner to try ot for free. You dont want to spend money to try something like U/L. If it doesnt work out, if your market sucks, you're stuck with the car note.


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## 1.5xorbust (Nov 22, 2017)

fredfighter said:


> Can't be. He suggested that if my Element was newer than 2003 I should try U/L. The last time I checked with Uber and Lyft (in 2013) Uber required that vehicles be no more than five years old. While Lyft accepted vehicles that were up to 10 years old, they did not accept Elements. Recently an Uber driver told me that Uber would now accept vehicles up to ten years old. My car is 13 years old.
> 
> So unless the criteria have changed again, I can't 'try'either with my Element.
> 
> ...


I believe tohuntforme has suggested auctions.


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## fredfighter (Sep 28, 2018)

steveK2016 said:


> Some markets allow 2001 vehicles
> 
> Uber Maryland allows 12 year old vehicles, 2005 or newer so you did miss the cutoff in your market. Should have jumped on sooner to try ot for free. You dont want to spend money to try something like U/L. If it doesnt work out, if your market sucks, you're stuck with the car note.


Like I said, I did check years ago and then either the standards were different or Uber and Lyft misinformed me both as to what years and models were accepted.

Uber and lift NEVER said anything about their standards being different in different markets.

This may explain why when I signed up for Uber Eats, Uber accepted me for Uber driver instead and it was a big hassle getting them to change it. Then when I checked on what payment would be for Uber eats, I never took an order.


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## steveK2016 (Jul 31, 2016)

fredfighter said:


> Like I said, I did check years ago and then either the standards were different or Uber and Lyft misinformed me both as to what years and models were accepted.
> 
> Uber and lift NEVER said anything about their standards being different in different markets.
> 
> This may explain why when I signed up for Uber Eats, Uber accepted me for Uber driver instead and it was a big hassle getting them to change it. Then when I checked on what payment would be for Uber eats, I never took an order.


You got approved as a pax driver in your element and you decided to change it? Now you may be locked out of doing pax driving...


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## fredfighter (Sep 28, 2018)

steveK2016 said:


> You got approved as a pax driver in your element and you decided to change it? Now you may be locked out of doing pax driving...


I don't know. Based on what Uber told me, I COULD NOT BE APPROVED to drive passengers in my Element. So I assume I never was. The last time I checked the app, it said I needed to update some information, mu guess is that would be my car. I did not pursue the matter further.

Correct me if I am wrong, but I cannot apply to be an Uber driver unless I have a car that qualifies, right?


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## oldfart (Dec 22, 2017)

fredfighter said:


> Can't be. He suggested that if my Element was newer than 2003 I should try U/L. The last time I checked with Uber and Lyft (in 2013) Uber required that vehicles be no more than five years old. While Lyft accepted vehicles that were up to 10 years old, they did not accept Elements. Recently an Uber driver told me that Uber would now accept vehicles up to ten years old. My car is 13 years old.
> 
> So unless the criteria have changed again, I can't 'try'either with my Element.
> 
> ...


In my market(Ft Myers Naples) cars can be 15 years old


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## fredfighter (Sep 28, 2018)

oldfart said:


> In my market(Ft Myers Naples) cars can be 15 years old


It sounds like the age issue varies by market.

What about models? Do the acceptable models vary by market too?

Because like, Uber and Lyft neither one accepted Elements the last time I checked.


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## oldfart (Dec 22, 2017)

fredfighter said:


> I don't know. Based on what Uber told me, I COULD NOT BE APPROVED to drive passengers in my Element. So I assume I never was. The last time I checked the app, it said I needed to update some information, mu guess is that would be my car. I did not pursue the matter further.
> 
> Correct me if I am wrong, but I cannot apply to be an Uber driver unless I have a car that qualifies, right?


Baltimore and greater Md 12 years okd is the max age for a car

and exactly right, you cant drive without a car


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## fredfighter (Sep 28, 2018)

oldfart said:


> Baltimore and greater Md 12 years okd is the max age for a car
> 
> and exactly right, you cant drive without a car


I would think that age doesn't matter if they don't accept the model.

If your car 'ages out' while you are driving for them, what do they do?


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## dmoney155 (Jun 12, 2017)

On average you will drive 25 miles an hour. So in your 60 hrs week you will do 1,500, in a year 78,000. Even if half of that time you will be waiting then your yearly mileage will be 39,000 miles. Typical lease allowance is 12,000 miles a year, and suppose overrun will cost ya 0.10/mile. So you looking a paying extra 2,700 per year for all that extra miles best case where half your time you are doing not moving.

Do the math before making the decision. Simple as that.


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## Christinebitg (Jun 29, 2018)

fredfighter said:


> don't know. Based on what Uber told me, I COULD NOT BE APPROVED to drive passengers in my Element. So I assume I never was.


Based on my experience dealing with large bureaucracies (in environmental work) here's what I would say to that:

Take "yes" for an answer. When you get an answer you want, STFU. (My Significant Other says this is also the right thing to do in front of a judge.)

And look for the loophole, then leap through it.

If you ask Support for something and finally get the correct response, do you really want to say "But the first three times they told me no"??

Christine


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## Liteorfree (Jul 31, 2018)

Try renting first. Then you can see if it's for you.


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## Danny3xd (Nov 7, 2016)

There are companies that rent short term just for rideshare, U/L drivers. You could try it out and see if you could do it full time.

Leasing is bad idea for this for all the reasons mentioned above. Really is.


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## UberLaLa (Sep 6, 2015)

You can't use an Element because it only has 4 total seat belts. UberX requires 5 seat belts. 1 for Driver and 4 more for passengers. There are exceptions sometimes...but that is the TOS bottom line.


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## Gilby (Nov 7, 2017)

SuzeCB said:


> Leasing outside a deal with U/L will exclude using the vehicle for U/L. The vehicle won't be approved because of it.


I don't understand this at all. I was never asked if I own or lease my vehicle. A co-worker uses his leased vehicle for Uber driver trips.


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## Danny3xd (Nov 7, 2016)

Interesting, Gil. What company does your coworker lease from? 

It's kosher if uber has a deal with them. Or was.

They ask for registration. So they are aware of owner.


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## SuzeCB (Oct 30, 2016)

Gilby said:


> I don't understand this at all. I was never asked if I own or lease my vehicle. A co-worker uses his leased vehicle for Uber driver trips.


Your lease, unless specifically for a commercially-plated vehicle that will carry specifically commercial insurance, will say somewhere in it that the vehicle cannot be used for any commercial (including delivery and rideshare) purposes.

You'll be fine until something goes wrong. In an accident, your passenger will be covered by Uber's insurance, and, if the accident is your fault, so will the other car and its occupants. Your car, however, will not. This is because they will investigate your insurance to make sure you carry Collision and Comprehensive (if you don't you have no Uber insurance for your own car anyway), and it is at this time that they will discover there is a lienholder that owns the car and that using it for rideshare was prohibited. They will deactivate you. The insurance company will also deactivate you because, of course, you won't have a Rideshare Endorsement because if you did, the lienholder would know what you were doing and cancel your lease for breach of contract.

When they run this check, your insurance company will find out about an accident. They are required by law at this point to notify the lienholder, and keep them apprised. The insurance company will cancel your policy(ies, if you have more than one vehicle in your name covered), and the lienholder will cancel your lease for breach of contract.

Damage to your car will not be covered by either company, and neither will any injuries you sustain. If the accident was someone else's fault, you'd be on shaky ground in court because you'd be going in with what they refer to as "Unclean Hands". You will be on the hook for the vehicle expenses to the leasing company, and you won't have the car because they will take it.

This particular breach involves fraud. It will be well-documented. Whether or not it would be prosecuted would be a different matter entirely, but insurance companies "talk" all the time. It could damage your ability to get affordable car insurance in the future, or ever lease a vehicle again.

Or, maybe you get lucky and nothing happens.

It's a lot to risk.


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## Gilby (Nov 7, 2017)

SuzeCB said:


> Your lease, unless specifically for a commercially-plated vehicle that will carry specifically commercial insurance, will say somewhere in it that the vehicle cannot be used for any commercial (including delivery and rideshare) purposes.


I didn't know this, since I have never leased a car. Now I wonder if my co-worker is aware of it.


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## SuzeCB (Oct 30, 2016)

Gilby said:


> I didn't know this, since I have never leased a car. Now I wonder if my co-worker is aware of it.


Probably not. It's not something Uber discusses, even though they give such extensive training... 

Everyone else assumes you read the papers before signing them.

For the record, the same restriction is on personal auto loans, as well.


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## Gilby (Nov 7, 2017)

Danny3xd said:


> Interesting, Gil. What company does your coworker lease from?


I don't know the answer. Although we work for the same company, I don't see him very often. The last time we discussed driving, he was concerned about the number of miles he was putting on his leased vehicle, so he may not be driving much at all anymore.


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## fredfighter (Sep 28, 2018)

First of all, if I did rent or lease, I would specify up front that I was renting or leasing for rideshare.
Second, I won't be leasing.

Also the Uber and Lyft both said the issue with the Element was that the read doors do not operate independently of the front doors, though seatbelts may have also been an issue.

And no, I wasn't going to go ahead and rideshare with my Element if their system somehow approved it in error as I would be concerned both that it could be construed as fraud on my part (no matter what their software did the plain English told me the Element did not qualify) and because for similar reasons their insurance might have been invalid.

This is the sort of thing where i agree with Lightning Rod Ben that honesty is the best policy.



I'm currently using a 2005 Buick Lesabre Because I got it cheap and it still a good car. But it will be ready for the scrapheap when I am done with it. Rideshare beat the ever loving shit out of the car[/QUOTE said:


> So how old can you go in your market?
> 
> Or do they grandfather cars once registered?


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## Oscar Levant (Aug 15, 2014)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


If you are going to put in a few years driving, then you'll do better leasing but you'll have to put in typical long hours ( like cabbies do ) for it to make economic sense. Lyft gives quota bonuses ( thus reducing lease costs drastically, but you have to work long hours to achieve them ) If you are going to drive for a few months, especially if you are a moonlighter, then it won't make sense at all. On the other hand, Uber leases I believe are cheaper than Lyft leases, at least that was the case here in San Deigo when I looked into it a few months ago. But now Uber is giving bonuses quite regularly, I've noticed.

If you own, the $.54 cent per mile deduct pretty much means you won't have to pay taxes, you will slow a break even or a loss on your P/L for taxes ( at least that is what happened on mine, my paid miles were low due to the fact I worked strictly the airport )
So, if you lease, you will have to itemize ( I think, better check with tax person ).
Sit down with an accountant and crunch the numbers according to how you drive, hours put in, lease versus ownership costs, tax strategies, etc.

The one really nice thing about leasing is that you are not putting all those miles on your personal car. Driving for Uber really thrashes your car, inside and out, if you drive on it for a couple of years, especially on the interior if it's not a black interior ( which is why I made sure my auto's interior was black when I purchased it, the bruising and stains that accrue over time hardly are visible)


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## wontgetfooledagain (Jul 3, 2018)

It looks like you are trying hard to talk yourself into this. Just know that driving is grueling, pays poorly and that renting or leasing a car is guaranteed to reduce your minimal profits to near nothing.

Also, forget about tax benefits. People that focus on this are chasing the wrong thing- making as much money as you can. If you pay lots of taxes, it means you made lots of money.


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## BOUNCE DRIVER (Aug 23, 2018)

fredfighter said:


> The 4%.
> 
> You may also not have inferred that I need a newer car.
> 
> ...


run from this idea of driving for Uber. Uber and Lyft continually cut drivers opportunity to earn decent money, with their up front pricing and variable platform fees. Surge and decent promos are rare. U/L are looking for the absolute cheapest bottom of the available labor pool. RUN away, get a real job.

God please don't drive for these rip off companies.


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## Danny3xd (Nov 7, 2016)

Oscar Levant said:


> If you are going to put in a few years driving, then you'll do better leasing but you'll have to put in typical long hours ( like cabbies do ) for it to make economic sense. Lyft gives quota bonuses ( thus reducing lease costs drastically, but you have to work long hours to achieve them ) If you are going to drive for a few months, especially if you are a moonlighter, then it won't make sense at all. On the other hand, Uber leases I believe are cheaper than Lyft leases, at least that was the case here in San Deigo when I looked into it a few months ago. But now Uber is giving bonuses quite regularly, I've noticed.
> 
> If you own, the $.54 cent per mile deduct pretty much means you won't have to pay taxes, you will slow a break even or a loss on your P/L for taxes ( at least that is what happened on mine, my paid miles were low due to the fact I worked strictly the airport )
> So, if you lease, you will have to itemize ( I think, better check with tax person ).
> ...


Always wondered, Oscar and would you know. If you lease threw one, (uber or lyft) can you drive for the other?


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## New2This (Dec 27, 2015)

Danny3xd said:


> Always wondered, Oscar and would you know. If you lease threw one, (uber or lyft) can you drive for the other?


I do Xchange Lease and there's no restrictions on Lyft or anything else.


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## Danny3xd (Nov 7, 2016)

New2This said:


> I do Xchange Lease and there's no restrictions on Lyft or anything else.


Cool. Thanks, New2.


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## SuzeCB (Oct 30, 2016)

New2This said:


> I do Xchange Lease and there's no restrictions on Lyft or anything else.


Interesting!

I rented through Uber's deal with Enterprise. I couldn't use those cars for Lyft.


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## New2This (Dec 27, 2015)

SuzeCB said:


> Interesting!
> 
> I rented through Uber's deal with Enterprise. I couldn't use those cars for Lyft.


Difference is the car is registered in my name. For all intents and purposes it's my car. Not so with rentals.

Interesting that Uber stopped the Xchange Lease program and Enterprise stopped renting to Uber Drivers. Apparently nobody figured out that Uber Drivers are hard on cars and drive a shitload of miles. Who knew?


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## Danny3xd (Nov 7, 2016)

New2This said:


> Difference is the car is registered in my name. For all intents and purposes it's my car. Not so with rentals.
> 
> Interesting that Uber stopped the Xchange Lease program and Enterprise stopped renting to Uber Drivers. Apparently nobody figured out that Uber Drivers are hard on cars and drive a shitload of miles. Who knew?


LoL, snork


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## El Janitor (Feb 22, 2016)

get yourself a nice used car, something Japanese thats is within the year limitations of UBER, and that will last for a few years. I would't lease something to drive UBER. happy hunting!


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## Brian G. (Jul 5, 2016)

Buy a car that will last 2-3 yrs without any major fixes! Spend 3-5k and you'll be fine. Bank on some money and maybe buy another car (7k-10k range) once that car isn't nickel-and-diming you.


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## I_Like_Spam (May 10, 2015)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> Other considerations?


The problem with financing a car for Uber/Lyft- either as a lease or a buy- is that some finance companies might not want you doing ride share. In fact, be sure to check the paperwork, make sure you can use their collateral for ride share.

Finance companies are concerned because commercial use of the vehicle reduces its collateral value more than personal use , in case you default on the loan. The finance company may want to charge you a higher interest rate to compensate them for their increased risk.

If the finance agreement prohibits you from using it for Uber, and you do anyhow and they find out, they can call in your loan in full.

You will also need to make sure you are properly insured for this use, and it goes double if you are paying a note. Maintaining proper insurance is always required for financing, and if you don't have proper coverage, they will buy a policy and charge you for it, to protect their interest in the vehicle.

Read the paper work when you are signing your life away


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## Fuzzyelvis (Dec 7, 2014)

fredfighter said:


> Can't be. He suggested that if my Element was newer than 2003 I should try U/L. The last time I checked with Uber and Lyft (in 2013) Uber required that vehicles be no more than five years old. While Lyft accepted vehicles that were up to 10 years old, they did not accept Elements. Recently an Uber driver told me that Uber would now accept vehicles up to ten years old. My car is 13 years old.
> 
> So unless the criteria have changed again, I can't 'try'either with my Element.
> 
> ...


You haven't actually checked with U/L since 2013? Stop talking to drivers and find out from U/L NOW. Many requirements have been loosened and you really don't know the criteria now. You're just guessing.


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## HotUberMess (Feb 25, 2018)

fredfighter said:


> Other considerations?


Yes. Consider a different line of work. Anything else but Rideshare.

Companies are desperate for truck drivers.


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

mbd said:


> You will go over your mileage limit in the first month...then you will end up paying 1.2 million dollars at the end of the lease.


Not quite this extreme...

for a 36 month lease working *full time* you could end up driving 100,000-150,000 miles. This puts you 70,000-120,000 over your mile limit and at 25c a mile in over mileage fees...

$17,500-$30,000 in extra fees.

At that point your only option is to buy your car for what it *WOULD* have been worth had you not gone over mileage.

Which would be buying a 3 year old car with 150,000 miles on it for the market price of the same make/model with 30,000 miles.

There's also excessive wear and tear.

In 3 1/2 years i owned my taxi I had to replace my seats 2 times for every seat on average. (driver seat 3 times, front passenger once, middle bench 3 times, rear bench once)

If you use your car for uber/lyft every little part will experience extra wear and tear, and your lease company can charge you extra for this damage.

Doing this full time, it's not unreasonable for a leasing company to pile on so much in damage/extra miles that you have no option but to buy the car.

_*Option 1. Pay up to $40,000 in over mileage fees/other damage/wear&tear*_

Option 2. Buy the car for $18,000 (when it's only worth $8,000)

BUt what if your only working part time?

I can do 500 miles a weekend easy.

500 miles a week, 50 months a year, 3 years...

500X 50X 3 =75,000

_*75K EXTRA MILES, WORKING JUST WEEKENDS*_

_*75,000 EXTRA miles is $18,750 in over mile charges.*_

There also could be an exception in the lease agreement saying you won't use it for commercial purposes. Violating this could result in really bad things happening. What could happen I don't know for sure.



fredfighter said:


> If your car 'ages out' while you are driving for them, what do they do?


A lot of us don't actually know. In Orlando uber has lowered the standards instead of aging out cars.

In 2014 it was 2009 (pretty sure it was 5 years or newer if i remember), now it's 2003.

So... if the pattern holds...

By 2022 we will be able to use a 1993 car.

So... honestly no idea there... it hasn't EVER happened in most markets.

If you instead BUY the car...

You need to do a 36 month loan.

The 2010 Toyota Sienna i bought only lasted 3.5 years before it wasn't worth fixing, total miles driven? 230,000 miles. It literally needed $8,000 in engine/******/front end work and was so low on the blue book value it that it didn't have a value.


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## Cableguynoe (Feb 14, 2017)

fredfighter said:


> I think I will take a couple of Uber rides, just to talk to the drivers.


You would be their direct competition.

Don't believe anything they tell you.


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## Karen Stein (Nov 5, 2016)

What is a "car lease?" I'll try to explain.

It's not like renting an apartment. When you rent an apartment, you get to use it for a year. How much you pay has no relation to how many nights you sleep there.

When you lease a car you're actually buying part of the car's expected life. That is, you pay based upon the MILES you drive. Drive extra miles and you get a big bill when you give the car back.

My last car started life as a lease. In effect, I paid half the new car price because I bought "half the car." At the end of the lease had a choice between buying the "other half" or giving the car back. 

It appears leases assume 100K miles as the life of the car. That makes sense- car values really drop at that point. Driving Uber full time, you'll drive that in two years.

IMO, the best solution is to get a loan that has no prepayment penalties, one that lets you pay as much as you want as often as you want (as long as you meet the monthly minimum). THEN you be aggressive in paying them something every week, based on your mileage. If you drive 100 miles, pay them $10 that week. 

Set your own weekly target by dividing the purchase price by the expected life of the car. If your car cost you $30K and you expect the car to last 150K miles, you need to pay 20 cents for every mile, every week.

Any less and you risk the car dying before you pay it off.


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## Christinebitg (Jun 29, 2018)

HotUberMess said:


> Companies are desperate for truck drivers.


And some of them will even pay for your training.

I don't personally want a CDL license, in part because it comes with a reduction in the allowable blood alcohol level. But the older I get (and the less I drink) that's less daunting.

Hey, maybe I could turn some tricks while I'm stopped at the truck stops.  (Just kidding!)

Christine


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## I_Like_Spam (May 10, 2015)

Buying or leasing a new car to provide cut-rate transportation might not work out that well with the numbers.

When I was driving Yellow Cab in the 1990's, the company leased us the vehicles on a daily/weekly basis. 

But when they needed new cabs, they went to auction, bought retired police cruisers with 100-150,000 miles on them already, brought them to the shop, painted them yellow and installed meters. Made economic sense. When you buy a car, you are buying say, 300,000 miles of driving pleasure. The 2nd 150,000 is a lot cheaper than the first.


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## HotUberMess (Feb 25, 2018)

fredfighter said:


> I think I will take a couple of Uber rides, just to talk to the drivers.


You are aware you're talking to Uber drivers in this thread, right?

Any driver you talk to in person is going to try to sell you on Uber because they want to get your hiring bonus. That's actually not allowed in this forum, so you're getting honest answers to your questions.

Also; there is much more to this website than just this one thread. Check it out. I suggest you start with the "complaints" to see what difficulties drivers are dealing with. Then maybe stories.. and then the rest.

How are you with vomit? Can you handle vomit in your car and on you? What about other bodily fluids? I've had vomit, urine and a large quantity of blood in my car - and I'm a *part time* driver. These are pretty common, can you handle them?


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## SuzeCB (Oct 30, 2016)

HotUberMess said:


> You are aware you're talking to Uber drivers in this thread, right?
> 
> Any driver you talk to in person is going to try to sell you on Uber because they want to get your hiring bonus. That's actually not allowed in this forum, so you're getting honest answers to your questions.
> 
> ...


Oooo, blood! I never had a pax's blood mess up my car, thank the gods!


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## HotUberMess (Feb 25, 2018)

SuzeCB said:


> Oooo, blood! I never had a pax's blood mess up my car, thank the gods!


It was period blood.

She was a gusher. Lol. Sorry everyone but she left so much it looked like she was bleeding out.

Uber on!!


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## SuzeCB (Oct 30, 2016)

HotUberMess said:


> It was period blood.
> 
> She was a gusher. Lol. Sorry everyone but she left so much it looked like she was bleeding out.
> 
> Uber on!!


Older woman, right? Happens rather often during perimenopause. There are medical ways to help with it though.

I'm glad those days are over!


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## Rittz19007 (Nov 2, 2016)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


No Just no there about to do set surges in every market Not worth it I avg 50k miles a year With lease you can only drive 15k a year and if you buy new you will be paying for a car that does not run for last 3 years


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## JTTwentySeven (Jul 13, 2017)

Don't lease.
You'll be paying up the butt in mile overage. Figure you have to pay $.15 - $.25 per mile over your limit, and you make lets say $.70 per mile during Uber (depending on your area), double your mile overage and then subtract it from the amount per mile you'll make (figure on trip miles = off trip miles), you'll be a hole.

Purchase a cheap used car, one that is reliable though. No more than $15k.


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## HotUberMess (Feb 25, 2018)

SuzeCB said:


> Older woman, right? Happens rather often during perimenopause. There are medical ways to help with it though.
> 
> I'm glad those days are over!


The opposite. A teenager! (19). And a foreign tourist.. she was terribly embarrassed but I told her it's ok

OP better be ready for gushers


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## SoFlaDriver (Aug 11, 2018)

HotUberMess said:


> The opposite. A teenager! (19). And a foreign tourist.. she was terribly embarrassed but I told her it's ok
> 
> OP better be ready for gushers
> View attachment 263630


Note to self: Buy seat covers.


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## touberornottouber (Aug 12, 2016)

- Don't even think of doing this while leasing. It's extremely stupid.
- Better yet, just don't do this. Don't get a "new" vehicle to do Uber or Lyft. In most areas it isn't worth it. And in many more areas it won't be worth it a year from now.


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## I_Like_Spam (May 10, 2015)

SoFlaDriver said:


> Note to self: Buy seat covers.


Taxis were traditionally furnished with vinyl seats and rubber floors.

Now you know why.

Also, why Yellow Cab bought police cruisers. Folks riding in the back of police cars often lose control of their bodily fluids too, and vinyl seats are standard for those vehicles


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## osii (Aug 21, 2014)

Be patient and find a 3 yr old off lease car with very low mileage for under 10K. put $3k down and you got a pmt under $200 a month even with mediocre credit. If you can find something that gets 25+mpg and qualifies for XL even better.


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## 2Cents (Jul 18, 2016)

steveK2016 said:


> Is your element older than 2003?
> 
> If not, give U/L a try now when you have a cheap car. You dont want to get a car note to do U/L then find out its not very profitable in your market or you hate it.
> 
> You can always buy a new car and replace the Element if you feel its worth continuing.


Honda did not make an Element before '03


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## Tom Harding (Sep 26, 2016)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


I've been doing this for over 3 years. I already had a 2008 Chevy Impala so I started with that. after a year I upgraded to a UberXl, 2015 Ford Transit XLT with 3 rd row seating. I have found out that XL is not just for people. I'd recommend a 2 to 3 year old minivan with no ore that 30,000 miles on it. The one I got was 1 year old, 20200 miles and certified by Ford. Yes, it did cost more than those cheap used cars, but I also use it as a family van. Two years later it had 133,000 miles on it. But with good servicing, it is running well and there is no problems in sight. I take the mileage deduction and it works out fine. Other deductions you can take are car washes, stuff you buy for the pax, other cleaning supplies, car mats, 1/2 of meals away from home, percentage of cell phone cost, and a couple of other deductions. Your mileage deduction should chop off about 75% of your earnings, most likely. 
So, because you'll be in your vehicle lots of hours every day, get on that you like, is comfortable for you and pax, and is a good family vehicle. Just don't go too high. Uber X and XL are O,K. Uber select pays a little more than XL but in my market, Select rides are not as common as XL.


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## UStaxman (Aug 14, 2016)

My 2 cents coming from a former auto sales manager and currently a tax professional:
Purchase a vehicle that is 2 years old (off lease or former executive car) such as Ford Fusion; Toyota Camry, etc.
A 2 year old Ford Fusion with 30K on the clock, for example, might sell for $15K where as a new one retails for $25K!
5 years from now, there is no difference in value between a 5 year old car with 200K miles or 230K miles—— but you saved $10K up front. The only difference in maintenance is an extra set of tires and brakes — that is it!
Electing the Standard mileage option with the IRS will yield approximately $100K in vehicle expenses over 200K.
Figuring a cap cost of $15, fuel at $18K (28 mpg at $2.50/ gallon) and repairs & maintenance at $10K your total cost is $40K while you were allowed to expense $100K— HELLO!!
Additional benefits of the used car: Lower excise tax & registration costs as well as lower insurance.
Standard Mileage rate includes Insurance/fuel/repairs & maintenance/ Depreciation— not excise tax & registration; report this under ‘Taxes’ on Sch C.
Car washes, although technically included in standard mileage rate can usually be reported separately under ‘other’ expense due to the nature of the business.


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## Older Chauffeur (Oct 16, 2014)

Tom Harding said:


> Other deductions you can take are car washes, stuff you buy for the pax, other cleaning supplies, car mats, 1/2 of meals away from home, percentage of cell phone cost, and a couple of other deductions.


Be careful in deducting meals "away from home." As I read the IRS Publication 463 you need to be far enough away from home that you need to be off long enough to require sleeping at a hotel. ("Napping in your car doesn't count.")
You can then deduct 50% of meals but you need to keep records.

Disclosure: I am not a tax professional.


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## New2This (Dec 27, 2015)

Tom Harding said:


> 1/2 of meals away from home


I believe (and UberTaxPro could verify this for me) that you technically can't deduct meals out while Ubering. You can deduct meals if:

*you're on travel a certain distance away from home

*you're taking a prospective Uber Driver to lunch to bullshit him about how Uber/Lyft are awesome. You can deduct meals for this but you'd be a real asshole trying to bring anybody else into this racket.

*oops didn't see Older Chauffeur post. Still the point stands


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## Older Chauffeur (Oct 16, 2014)

UStaxman said:


> Standard Mileage rate includes Insurance/fuel/repairs & maintenance/ Depreciation- not excise tax & registration; report this under 'Taxes' on Sch C.


You're the taxman, but Pub 463 says the standard mileage rate includes vehicle registration fees:
"If you use the standard mileage rate for a year, you can't deduct your actual car expenses for that year. You can't deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. See Choosing the standard mileage rate and Standard mileage rate not allowed, later."


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## oldfart (Dec 22, 2017)

UStaxman said:


> My 2 cents coming from a former auto sales manager and currently a tax professional:
> Purchase a vehicle that is 2 years old (off lease or former executive car) such as Ford Fusion; Toyota Camry, etc.
> A 2 year old Ford Fusion with 30K on the clock, for example, might sell for $15K where as a new one retails for $25K!
> 5 years from now, there is no difference in value between a 5 year old car with 200K miles or 230K miles-- but you saved $10K up front. The only difference in maintenance is an extra set of tires and brakes - that is it!
> ...


Other deductions are business expenses, like business cards, a portion of your cell service. I claim the home office deduction. But that's questionable. Water and mints. Charging cords etc


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## steveK2016 (Jul 31, 2016)

Tom Harding said:


> I've been doing this for over 3 years. I already had a 2008 Chevy Impala so I started with that. after a year I upgraded to a UberXl, 2015 Ford Transit XLT with 3 rd row seating. I have found out that XL is not just for people. I'd recommend a 2 to 3 year old minivan with no ore that 30,000 miles on it. The one I got was 1 year old, 20200 miles and certified by Ford. Yes, it did cost more than those cheap used cars, but I also use it as a family van. Two years later it had 133,000 miles on it. But with good servicing, it is running well and there is no problems in sight. I take the mileage deduction and it works out fine. Other deductions you can take are car washes, stuff you buy for the pax, other cleaning supplies, car mats, 1/2 of meals away from home, percentage of cell phone cost, and a couple of other deductions. Your mileage deduction should chop off about 75% of your earnings, most likely.
> So, because you'll be in your vehicle lots of hours every day, get on that you like, is comfortable for you and pax, and is a good family vehicle. Just don't go too high. Uber X and XL are O,K. Uber select pays a little more than XL but in my market, Select rides are not as common as XL.


*You cannot deduct car washes if you are using SMD*. Car wash is a standard maintenance item and is part of the calculation. So is cleaning supplies, part of vehicle maintenance.

Customer comfort items can be deducted. Seat covers, floor mats, water, candy, gum (if you're into that)... but these are pretty negligible for anyone driving a significant amount of time. Yes, a portion of your cell phone can also be deducted. All mostly negligible unless you are spending $100's a week on Candy and Drinks for your pax. Food, as mentioned above by Older Chauffeur has a requirement of being a pretty significant distance from home in that you cannot reasonably make it home to eat the food in your fridge.



oldfart said:


> Other deductions are business expenses, like business cards, a portion of your cell service. I claim the home office deduction. But that's questionable. Water and mints. Charging cords etc


Home Office deductions are red flags to the IRS. Unless you have a more legitimate business that actually requires a "Home Office" being an Uber driver doesn't qualify to have a "Home Office" as your place of business is your vehicle, not your home.


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## oldfart (Dec 22, 2017)

steveK2016 said:


> *You cannot deduct car washes if you are using SMD*. Car wash is a standard maintenance item and is part of the calculation. So is cleaning supplies, part of vehicle maintenance.
> 
> Customer comfort items can be deducted. Seat covers, floor mats, water, candy, gum (if you're into that)... but these are pretty negligible for anyone driving a significant amount of time. Yes, a portion of your cell phone can also be deducted. All mostly negligible unless you are spending $100's a week on Candy and Drinks for your pax. Food, as mentioned above by Older Chauffeur has a requirement of being a pretty significant distance from home in that you cannot reasonably make it home to eat the food in your fridge.
> 
> Home Office deductions are red flags to the IRS. Unless you have a more legitimate business that actually requires a "Home Office" being an Uber driver doesn't qualify to have a "Home Office" as your place of business is your vehicle, not your home.


 That's why I called it questionable. I have vlaimwd it for years for my real estate businesses. I have the Rome set aside for business only and I'm gonna continue doing it.

I think with more and more people working from home it's becoming less a red flag than in the past. But still probably a pink flag


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## steveK2016 (Jul 31, 2016)

oldfart said:


> That's why I called it questionable. I have vlaimwd it for years for my real estate businesses. I have the Rome set aside for business only and I'm gonna continue doing it.
> 
> I think with more and more people working from home it's becoming less a red flag than in the past. But still probably a pink flag


Real Estate agent would be a legitimate use of a home office.


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## Older Chauffeur (Oct 16, 2014)

Re car washes, I believe in the taxes forum UberTaxPro said that due to the nature of rideshare, and the need to have a clean vehicle, one could justify deducting car washes in excess of the normal one per week.


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## New2This (Dec 27, 2015)

Being realistic here, the likelihood of the I.R S. spending appreciable resources to do a thorough full anal exam audit on an Uber Driver would be a poor return of time invested.

There's a saying about blood from a stone...


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## Danny3xd (Nov 7, 2016)

New2This said:


> Being realistic here, the likelihood of the I.R S. spending appreciable resources to do a thorough full anal exam audit on an Uber Driver would be a poor return of time invested.
> 
> There's a saying about blood from a stone...


Yea, I agree New. Especially if you avoid obvious things like using a car 100% for ubering. If this is your main thing, kinda cheating to take the home office deduction.

(and in reality, I come close with my Prius but would never report that)


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## Older Chauffeur (Oct 16, 2014)

New2This said:


> Being realistic here, the likelihood of the I.R S. spending appreciable resources to do a thorough full anal exam audit on an Uber Driver would be a poor return of time invested.
> 
> There's a saying about blood from a stone...


There's a member here who might argue with you about that. butchr is being audited for 2015, and his mileage log wasn't compliant with IRS rules because it wasn't contemporaneous and didn't have the required information. You can find his posts in the old (Jan 2016) thread by UberPissed entitled "Tax Attorney Here...... Ask Away" starting at post 452.


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## UberTaxPro (Oct 3, 2014)

oldfart said:


> That's why I called it questionable. I have vlaimwd it for years for my real estate businesses. I have the Rome set aside for business only and I'm gonna continue doing it.
> 
> I think with more and more people working from home it's becoming less a red flag than in the past. But still probably a pink flag


If you you do your own bookkeeping and or taxes you'll need an office to handle the business activities. If you have real bookkeeping records and file all your necessary tax forms you've already justified the need for a home office. In my opinion, it is not a reach to claim that a home office is necessary to keep your business in complience with all the government authorities you deal with. 
Now if you don't have a mileage log, bookkeeping records and don't file your tax forms, you may be reaching to claim a home office deduction. The auditor might ask you what work you did in the office.


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## Bbonez (Aug 10, 2018)

Stevie The magic Unicorn said:


> 500 miles a week, 50 months a year,


There are 50 months in a year? Apparently I'm not even old enough to get a driver's license. I hope U/L doesn't find out about this.


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## oldfart (Dec 22, 2017)

UberTaxPro said:


> If you you do your own bookkeeping and or taxes you'll need an office to handle the business activities. If you have real bookkeeping records and file all your necessary tax forms you've already justified the need for a home office. In my opinion, it is not a reach to claim that a home office is necessary to keep your business in complience with all the government authorities you deal with.
> Now if you don't have a mileage log, bookkeeping records and don't file your tax forms, you may be reaching to claim a home office deduction. The auditor might ask you what work you did in the office.


Exactly

It may be a red flag but it ought to pass an audit



New2This said:


> Being realistic here, the likelihood of the I.R S. spending appreciable resources to do a thorough full anal exam audit on an Uber Driver would be a poor return of time invested.
> 
> There's a saying about blood from a stone...


I've always followed the principle of "when in doubt deduct"

As you say, the irs has better things to do than audit Uber drivers just like driving for Uber isn't a good return on the invested vehicle and time. Auditing us isn't a good return on irs resources and their agents time

As long as your addition is correct you can probably get away with anything


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## eeabe (Sep 4, 2018)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


I haven't done taxes as a driver yet so I can't really give you feedback about that. But since it sounds like you have the option to buy or lease and you mentioned other considerations, I'll weigh in a bit.

There are probably plenty of success stories out there regarding leasing to do ridesharing, but I've heard some nightmares about it. The main problems I've heard about stem from drivers not being able to predict what will happen that might stop them from making money driving (i.e., accidents, deactivation from false pax claims, illness, etc.) while still being stuck with the payments.

One story a rider told me last week is how his cousin leased to drive for Uber, got into an accident that resulted in his car being under repair for weeks, then couldn't keep up with the lease after the deductible and catch-up payments and defaulted. Some how he was able to do it again for another rideshare and defaulted again because he wasn't making enough. The rider then told me his cousin now drives for one of those Access-A-Ride type companies and has to pay a certain amount to use their vehicle (either weekly or monthly - I can't remember exactly), and the poor guy now sleeps in the damn thing and has his stuff in a storage unit or something because he barely makes enough to get by. And he was and is working in NYC which has among the highest rates for drivers (but also one of the highest costs of living). When I asked, he said his cousin didn't have a family or kids to take care of; could you imagine if he did? Unfortunately, I'm sure there are other stories out there like this or worse.

In essence, I would not recommend a lease *if* you are able to buy, and I recommend a vehicle that's fuel efficient and inexpensive if it's mainly for ridesharing. If you do decide to lease, keep in mind that there is no guarantee of how long or consistently you will be able to drive or what you'll make.

I hope this is helpful, and good luck whatever you decide!


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## Karen Stein (Nov 5, 2016)

You need a 'primary place of business, that is, a street address. UPS can't deliver stuff to your car. You also need a place to park the car. Thus, your home.

Red flag? Too bad. It is what it is. It's a deduction that's often abused, so expect it to be challenged - especially if you Uber as a supplement to a regular job. IMO, the key is to be reasonable; just claim the space occupied by your desk.

Once your home is claimed as your "primary place of business" you can now claim all miles, door to door. 

Frankly, I don't give a fig what "the guy at HR Block" says. I'll take the word direct from the IRS' mouth over them. Sure, there have been times the IRS has disagreed with their own publications - but look into the details of those cases and you'll find they're very technical cases.


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## jfinks (Nov 24, 2016)

steveK2016 said:


> Is your element older than 2003?
> 
> If not, give U/L a try now when you have a cheap car. You dont want to get a car note to do U/L then find out its not very profitable in your market or you hate it.
> 
> You can always buy a new car and replace the Element if you feel its worth continuing.


The Honda Element isn't eligible due to how the doors open. It doesn't matter the year.



New2This said:


> I believe (and UberTaxPro could verify this for me) that you technically can't deduct meals out while Ubering. You can deduct meals if:
> 
> *you're on travel a certain distance away from home
> 
> ...


The tax code specifically states that 1/2 meals are deductible if the meal is directly before or after a meeting. All of my meals out driving are directly before or after a ride "meeting", therefore deductible.


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## New2This (Dec 27, 2015)

jfinks said:


> The tax code specifically states that 1/2 meals are deductible if the meal is directly before or after a meeting. All of my meals out driving are directly before or after a ride "meeting", therefore deductible.


Who did you meet with? The rider?


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## jfinks (Nov 24, 2016)

Yup, in my office with wheels.


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## Danny3xd (Nov 7, 2016)

I gots me a windowed office that corners. Head bapping, toe tapping singing an' rockin' down the highway do'n 60.






.75 cents a mile baby


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## KMANDERSON (Jul 19, 2015)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


Never lease a car to drive for uber or lyft.If you want to make money and your Car does not qualify try doing food delivery if available where you live.Try Grubhub Doordash or caviar.Food delivery has no car requirements.Belive it or not food delivery can be more profitable.On Grubhub you can average 1.30 for every mile you drive.That impossible on Uber x unless you drive surge only.


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## oldfart (Dec 22, 2017)

Danny3xd said:


> Yea, I agree New. Especially if you avoid obvious things like using a car 100% for ubering. If this is your main thing, kinda cheating to take the home office deduction.
> 
> (and in reality, I come close with my Prius but would never report that)


I don't think using a car 100% for Uber and Lyft would be a problem at all. To the contrary it shows that you are 100% committed to your business. Its not some half -assed hobby shop business designed to lose money for tax purposes. (You do need to show another car for personal use)


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## SCdave (Jun 27, 2014)

SuzeCB said:


> Your lease, unless specifically for a commercially-plated vehicle that will carry specifically commercial insurance, will say somewhere in it that the vehicle cannot be used for any commercial (including delivery and rideshare) purposes.
> 
> You'll be fine until something goes wrong. In an accident, your passenger will be covered by Uber's insurance, and, if the accident is your fault, so will the other car and its occupants. Your car, however, will not. This is because they will investigate your insurance to make sure you carry Collision and Comprehensive (if you don't you have no Uber insurance for your own car anyway), and it is at this time that they will discover there is a lienholder that owns the car and that using it for rideshare was prohibited. They will deactivate you. The insurance company will also deactivate you because, of course, you won't have a Rideshare Endorsement because if you did, the lienholder would know what you were doing and cancel your lease for breach of contract.
> 
> ...


Uhhhh, what's the good part?


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## SuzeCB (Oct 30, 2016)

SCdave said:


> Uhhhh, what's the good part?


Exactly.


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## corniilius (Jan 27, 2017)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


Don't just buy, buy used. I purchased a vehicle through Carmax with extended warranty. Happy so far.


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## oldfart (Dec 22, 2017)

corniilius said:


> Don't just buy, buy used. I purchased a vehicle through Carmax with extended warranty. Happy so far.


Will Carnax honor that warranty if they learn you are using it for rideshare


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## corniilius (Jan 27, 2017)

oldfart said:


> Will Carnax honor that warranty if they learn you are using it for rideshare


They will only know that if I share it with them.


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## RaleighUber (Dec 4, 2016)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> Assuming the vehicle is used exclusively for Uber/Lyft:
> ...


Suggest you get advice from a tax professional. 
That said, getting a loan to drive a car for ride share is NEVER a good idea. You'd be far better off paying cash for an 8 year old Prius or Insight.


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## I_Like_Spam (May 10, 2015)

corniilius said:


> They will only know that if I share it with them.


The folks that work at Carmax might be sharper than you give them credit for.


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## Eugene73 (Jun 29, 2017)

you definitely should buy. get the most expensive car they will qualify you for and be the best darned uber driver around. oh, and btw, welcome to slave wages and poverty


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## Dammit Mazzacane (Dec 31, 2015)

Only change cars if you plan to do so normally without Uber or Lyft in your portfolio.

A lease is a sham. Buying an older car outright may be out of reach but is ideal. Buying on finance is a sham because you are paying interest that may exceed your earnings.


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## corniilius (Jan 27, 2017)

I_Like_Spam said:


> The folks that work at Carmax might be sharper than you give them credit for.


Considering I only uber about 15-20 hours a week, I'm hardly piling the mileage onto my vehicle.


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## Jerryk2 (Jun 4, 2017)

SoFlaDriver said:


> Note to self: Buy seat covers.


And adult diapers


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## TDR (Oct 15, 2017)

fredfighter said:


> The 4%.
> 
> You may also not have inferred that I need a newer car.
> 
> ...


Don't forget to tip.


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## UberPrius11 (Jun 23, 2016)

fredfighter There is a lot of info being thrown around on here and most of us are jaded so here are the cliffnotes without the jade 

1. Buy the oldest car you can for the level of Uber you will do-so in this case X and pool would be a 2005-2006 in your market. They DO NOT have specific car restrictions now other than age, 4 doors and 4 passenger seat belts. This can be modified if needed, I have seen a 2 door smart car on Uber picking up PAX but has to be done in a greenlight office. DO NOT spend more than 5-6k under ANY circumstance
2. Buy the car-never rent or lease ESPECIALLY through FAIR or anyone else (I know you said you will not but it needs to be said for anyone reading)
3. Prius, Volt, Civic or any other 4 door Hybrid are really the only money making options unless you go upmarket
4. Uber changes by the day so the info you got in 2013 isn't just inaccurate it's not even in the same ballpark
5. Google is your friend-a quick "Uber requirements in ____________-name your city" would have garnered all this info in two clicks
6. You mentioned Fraud or something else about getting a car approved-the only fraud you need to worry about comes FROM Uber, if they approve you then you are OK period.

I hope that helps, but I also hope you find another avenue to make the money you need.


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## oldfart (Dec 22, 2017)

UberPrius11 said:


> fredfighter There is a lot of info being thrown around on here and most of us are jaded so here are the cliffnotes without the jade
> 
> 1. Buy the oldest car you can for the level of Uber you will do-so in this case X and pool would be a 2005-2006 in your market. They DO NOT have specific car restrictions now other than age, 4 doors and 4 passenger seat belts. This can be modified if needed, I have seen a 2 door smart car on Uber picking up PAX but has to be done in a greenlight office. DO NOT spend more than 5-6k under ANY circumstance
> 2. Buy the car-never rent or lease ESPECIALLY through FAIR or anyone else (I know you said you will not but it needs to be said for anyone reading)
> ...


gotta disagree with your point 1. > If I do as you suggest and buy the oldest car that qualifies in my market, Im guaranteeing Ill only get one year out of it.. so even if I pay just $4000 for it, its gonna cost me $4000 a year and if i put 50000 miles on it that year, my cost for the car (depreciation) is 8 cents a mile

I could buy a car thats; lets say 5 years old with, say 50000 miles on it and pay $20000 for it. If I keep it 5 years at 50000 miles a year my cost will be exactly the same

Maybe you are recommending junking the car and buying a new one every year.. That works, but not for me. If I was going to do that Id go into the used car business

But if I can buy a car that I think has 200000 miles and 5 years left in it before it ages out of Uber, and pay less than $20000, Thats what Id do


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

corniilius said:


> Considering I only uber about 15-20 hours a week, I'm hardly piling the mileage onto my vehicle.


for me 15-20 hours per week is 300-400 miles...

at 50 weeks a year...

15,000-20,000 miles a year,

over 5 years is 100,000 miles



oldfart said:


> gotta disagree with your point 1. > If I do as you suggest and buy the oldest car that qualifies in my market, Im guaranteeing Ill only get one year out of it.. so even if I pay just $4000 for it, its gonna cost me $4000 a year and if i put 50000 miles on it that year, my cost for the car (depreciation) is 8 cents a mile
> 
> I could buy a car thats; lets say 5 years old with, say 50000 miles on it and pay $20000 for it. If I keep it 5 years at 50000 miles a year my cost will be exactly the same
> 
> ...


That's a good theory, in theory...

However in some markets cars have NEVER aged out of the system, Orlando for instance they keep pushing the age requirement lower without ever aging any cars out.

My suggestion is to buy a car 4 years away from aging out, or halfway to aging out.

A 2006-2008 with 100,000 miles is pretty cheap..

(found a 2007 with 132,000 miles for $6781)

https://www.carfax.com/vehicle/5TDZK23C27S034189
An 07 XL eligible car for under 7000

Should be able to last you a few year and you should be able to get 150,000 miles out of it.


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## UberPrius11 (Jun 23, 2016)

oldfart said:


> gotta disagree with your point 1. > If I do as you suggest and buy the oldest car that qualifies in my market, Im guaranteeing Ill only get one year out of it.. so even if I pay just $4000 for it, its gonna cost me $4000 a year and if i put 50000 miles on it that year, my cost for the car (depreciation) is 8 cents a mile
> 
> I could buy a car thats; lets say 5 years old with, say 50000 miles on it and pay $20000 for it. If I keep it 5 years at 50000 miles a year my cost will be exactly the same
> 
> ...


Uber grandfathers in cars that qualify and are not in bad condition, plus at that level you are expecting to get about 2 years of long term driving out of it without major repair. Once you get close to the end rinse and repeat. May not work for everyone but it's the smartest play. If you paid 20k for a car you can get 4-5 years out of I would be willing to almost guarantee there will be a major repair in that time and you'd be worse off financially.

YMMV though, I am handy with cars and rarely need a mechanic so an older car is a much easier proposition in my opinion. It may not be as clear for other people in different situations.


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## SuzeCB (Oct 30, 2016)

corniilius said:


> They will only know that if I share it with them.


It's one of the things they screen for now, so, since your car will be listed with U/L's insurance company, they will know. Your mileage will tip them off to look closer.

This is what Carmax DOES. You really think you can do it better than them and that ability is what will let you fool them?

More power to ya.


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## AzAppDriver (Feb 27, 2017)

oldfart said:


> gotta disagree with your point 1. > If I do as you suggest and buy the oldest car that qualifies in my market, Im guaranteeing Ill only get one year out of it.. so even if I pay just $4000 for it, its gonna cost me $4000 a year and if i put 50000 miles on it that year, my cost for the car (depreciation) is 8 cents a mile
> 
> I could buy a car thats; lets say 5 years old with, say 50000 miles on it and pay $20000 for it. If I keep it 5 years at 50000 miles a year my cost will be exactly the same
> 
> ...


Since most drivers quit in < 1 year, I would suggest sticking to UberPrius11 suggestion on this. As he stated DO NOT spend more than 5-6k under ANY circumstance.


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## oldfart (Dec 22, 2017)

AzAppDriver said:


> Since most drivers quit in < 1 year, I would suggest sticking to UberPrius11 suggestion on this. As he stated DO NOT spend more than 5-6k under ANY circumstance.


If this is just a one year gig then I wouldn't buy anything new or used at any price. I'd either use what I already owned or just not do it

On the other hand, if I was buying a car because I needed one already, Id buy what I wanted and needed for my family and use it

$5000 or $6000 For a car that lasts 1 year does seem about right. Assuming 50000 to 60000 miles a year that's about 10 cents a mile. The thing is I don't see any difference buying a $5000 car and using for 50000 miles over a year and a $20000 car For 200000 miles over 4 years either way it's 5 cents a mile

Understand, i think there are exceptions to any rule And I'll argue just for the fun of it with anyone that speaks in absolutes. So when you say DO NOT spend more than $5000 or $6000 for a car under ANY circumstances it gets my back up . Especially when I know I have a well thought out plan to buy a $40000 - $50000 car and in two years (or sooner if the Ford craps out), buy commercial insurance and go after the private ride, Black Car business


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## Christinebitg (Jun 29, 2018)

oldfart said:


> I don't see any difference buying a $5000 car and using for 50000 miles over a year and a $20000 car For 200000 miles over 4 years either way it's 5 cents a mile


I think you'd agree that the four year deal is much more of a commitment to work that the original poster hasn't actually done yet.

Christine


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## Tom Harding (Sep 26, 2016)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


I am sure I seen a Honda element or "Cube" with a Lyft logo in the window.


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## UberPrius11 (Jun 23, 2016)

oldfart said:


> If this is just a one year gig then I wouldn't buy anything new or used at any price. I'd either use what I already owned or just not do it
> 
> On the other hand, if I was buying a car because I needed one already, Id buy what I wanted and needed for my family and use it
> 
> ...


I do see your point, and there are many ways to run a business so there really is not wrong answer (other than buying a new car!!!) but for me there are a few constants
1. a 4-5k car for 2 years (not one as you keep mentioning, I have bought over a dozen cars like this and if you know what you are looking for you can get an easy 2 years and 100k with minor maintenance and repairs)
2. A 20k car sounds like it would just be an extrapolation of the previous calculation but it really isn't, there are many variables. The 20k car will most assuredly cost more to maintain and repair, you would also be beholden to the loan which is much higher I would assume
3. I would prefer to NOT use a car I am going to keep personally for Uber-the threat of drunks, dumb people, dings/damage and the weird things you find in seats are all reasons to try if at all possible to use a separate car
4. tax implications-minor but an exclusive car car write off all miles

But again these are just different views of the same situation and what works for me may not work for others. I tend to look at it like a true business, ROI and all that but I am sure there are holes in my thinking


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## oldfart (Dec 22, 2017)

Christinebitg said:


> I think you'd agree that the four year deal is much more of a commitment to work that the original poster hasn't actually done yet.
> 
> Christine


Im not speaking to the original posters intentions, I dont know what they are and neither do you

My comments flow from the guys that post the absolute truths of ubering.. 
All Im trying to do is show that there are different ways to make this thing work


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## oldfart (Dec 22, 2017)

UberPrius11 said:


> I do see your point, and there are many ways to run a business so there really is not wrong answer (other than buying a new car!!!) but for me there are a few constants
> 1. a 4-5k car for 2 years (not one as you keep mentioning, I have bought over a dozen cars like this and if you know what you are looking for you can get an easy 2 years and 100k with minor maintenance and repairs)
> 2. A 20k car sounds like it would just be an extrapolation of the previous calculation but it really isn't, there are many variables. The 20k car will most assuredly cost more to maintain and repair, you would also be beholden to the loan which is much higher I would assume
> 3. I would prefer to NOT use a car I am going to keep personally for Uber-the threat of drunks, dumb people, dings/damage and the weird things you find in seats are all reasons to try if at all possible to use a separate car
> ...


I keep mentioning one year because you posted this 
"Buy the oldest car you can for the level of Uber you will do-so in this case X and pool would be a 2005-2006 in your market"
The oldest car this year will be too old next year, unless you get a waiver... Why are we willing at trust uber to give us an extension or waiver?

I would usually advise against a loan, but I have always been in favor of using OPM . If all I had was $20000 and I wanted a $20000 car I think Id finance it. What Im saying is that Id rather have the money in the bank than in the car and I know not all of us can just write a $20000 car. But the fact is, (at least I think its a fact) If you are honest with the finance company, you wont get a loan

I would prefer to have one car for uber and another for my personal use but like the loan vs cash purchase question, Its not a choice for all of us.

Understand, Im not saying my way is the only way to do this thing.In fact I haven't even sharedhere, what Im doing, except to say Im driving the car I own as long as I can. (the cheapest car to drive is the one you already own) all Im saying is that your way isnt the only way to do this either.


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## fredfighter (Sep 28, 2018)

Tom Harding said:


> I am sure I seen a Honda element or "Cube" with a Lyft logo in the window.


Doesn't the Cube have independently opening rear doors? That's the issue with the Element, the front doors have to be opened before the rear doors can open.

Aside from which, once a person is signed up for U/L and they have a sticker, can't they put the sticker on any car they want? It would not be kosher and *I* would not do that, but how hard would it be to get away with it?


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## fredfighter (Sep 28, 2018)

More questions:

Uber says the car must not have any cosmetic damage. Every car that isn't brand new has some scratches and dings so how bad does the cosmetic damage have to be, and how do they know? Yeah, I know, 'how bad' is subjective. 

If I replace the door on a car and have it painted to match, but the match isn't great will they care?

How about rust bubbles, but no perforation?


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## Gtown Driver (Aug 26, 2018)

fredfighter said:


> More questions:
> 
> Uber says the car must not have any cosmetic damage. Every car that isn't brand new has some scratches and dings so how bad does the cosmetic damage have to be, and how do they know? Yeah, I know, 'how bad' is subjective.
> 
> ...


I got into an accident with clear cosmetic damage to bumper and headlight and Uber kept me on the road despite until I gave away the car. They want you to make money (for them) so as long as it doesn't look like you got the car from a Destruction Derby you can get on board. Plus maintained really good rating with no customer ever dinging me or questioning me for the visual eyesore of the vehicle.

Uber/Lyft never asks for pictures of your vehicle to start any way. All you do is input what make and color your car is and that's all they know until you get in an accident.


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## HotUberMess (Feb 25, 2018)

1. It’s next to impossible to use a different car because eventually a pax will complain.

2. Ignore minor cosmetic damage. They don’t care. Photoshop if you have to LMAO.


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## fredfighter (Sep 28, 2018)

https://estimate.ridester.com/cities/Washington, DC, USA/uber

Is this estimator correct for DC in Alexandria Virginia? It seems like the per minute per mile rates are about three times higher than what I have heard.


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

HotUberMess said:


> 1. It's next to impossible to use a different car because eventually a pax will complain.
> 
> 2. Ignore minor cosmetic damage. They don't care. Photoshop if you have to LMAO.


Go to a mall and try to find your cars "twin" or something close. I doubt rohit will know the difference between a 2008 and a 2009 of the same color for instance.


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## HotUberMess (Feb 25, 2018)

Stevie The magic Unicorn said:


> Go to a mall and try to find your cars "twin" or something close. I doubt rohit will know the difference between a 2008 and a 2009 of the same color for instance.


Always with the brilliant ideas, you!!

This really is great.. lol


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## Oscar Levant (Aug 15, 2014)

Danny3xd said:


> Always wondered, Oscar and would you know. If you lease threw one, (uber or lyft) can you drive for the other?


Not with the same vehicle, though I don't know for sure. Seems to me, if you pay the lease, it wouldn't matter, but I wouldn't doubt there is something about it in the contract. Also, Lyft has quit power bonuses in my city, so I'm not lyfting until it returns. Uber for the time being, as they have more trips. Thinking about an Uber lease, they are cheaper than Lyft leases, the last time I checked. My personal car is now up to 143K, enough it enough.


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## fredfighter (Sep 28, 2018)

Finally got around to getting a car. Bought a 2014 Nissan Stanza. Now to sign up with Via, Lyft and Uber, and get the riders on my insurance. Several years back I started to sign up for uber and stopped part way through when I found out that my car would not be accepted. Now I wonder if uber will pick up where I left off, or what.

Oh, only 25,000 miles on the Stanza. Almost like buying new old stock.


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## SCdave (Jun 27, 2014)

2014 Stanza?


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## InCredit (Oct 5, 2016)

fredfighter said:


> typical driver that's between 18 and $20 an hou


I agree.



fredfighter said:


> The big risk would be


...any rider can TERMINATE your rideshare career with one accusation, and you now have a "newer' car you have to pay with another means of earning.


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

oldfart said:


> I keep mentioning one year because you posted this
> "Buy the oldest car you can for the level of Uber you will do-so in this case X and pool would be a 2005-2006 in your market"
> The oldest car this year will be too old next year, unless you get a waiver... Why are we willing at trust uber to give us an extension or waiver?


For the record...

You can drive with an older car (2003) than you could at launch in Orlando, to the best of my knowledge no car has ever aged out of X/XL in orlando, they have kept lowering the bar.


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## InCredit (Oct 5, 2016)

SCdave said:


> 2014 Stanza


Sentra?


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## Corelist2121 (Mar 6, 2019)

fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


It would be foolish to lease from the dealer/manufacturer!!! Yes a lease is 100% wright off however there is a stick in the spokes of this bicycle!!! You will have to pay for mileage that exceeds the miles you choose to guage your lease payment !!! They usually charge around .25 per mile over the set given miles that are etched in stone on a lease!!! Ponder on that for just a min but also you will have to carry higher insurance limits which will also tax you on a monthly bas


fredfighter said:


> I am looking seriously at driving for Uber/Lyft. My current vehicle (Honda Element) is not acceptable to either. So I will have to get a vehicle that is.
> 
> The question is, particularly considering taxes, which is better -- buying or leasing?
> 
> ...


a lease would be a sure loss as a lease has a resedual at the end and a mileage cap that is determined by the lease payment. You could dedicate more than 15k per year but your residual would drop and your payment would go up so the smart thing to do would be to buy a program car that was maybe a rental return that is a current year model or 1 year old that may still be in the factory warenty. What you should do is open an LLC for about 50.00 to register it in your state as a tax shield and purchase a program car personally and lease it to your LLC for what ever your note is!!! Let your LLC insure the car being you are leasing the car to your own LLC. At that point your lease will be 100% deductible along with parts (tires etc) and mantaince !!! You can set your lease up for the exact term of your purchase with a 1.00 buy out at the end of your lease from yourself that way the 1.00 buy out would be your residual and do not put any mileage limits in your lease and what ever miles you use you get paid for as you drive for Uber !!! Wow I really suprise myself sometimes lol lol. If you are unsure you can contact your tax man or any CPA and they will tell you I am correct!!!


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## Asificarewhatyoudontthink (Jul 6, 2017)

fredfighter said:


> I could do this full-time, up to say, 60 hours/week, and can pick my times for whenever /where ever there is the most business in the DC/Balmore area.
> 
> So it looks like if I am going to do this, the way to go is to find a 'certified pre-owned' economy car for $10 -$12k. With a reasonable down payment the monthly payments for a 36 month loan should be around $250/month. Have to check on insurance costs both if I do or do not sell my current vehicle (which I would like to keep for the cargo capacity). At worse, 20 hours or so driving time should gross enough to cover payments and insurance
> 
> The big risk would be major mechanical failure that totals the car.


Don't forget all those "surge" driving tips where people talked about making large dollar amounts in short time frames is over.
With flat surge (dollar amounts instead of x multiplier) you are looking at only earning a "steady" gross earnings.

Even if you work thr bar let out scene you are going to need to work other hours to break even.

But, hey, don't listen to the 3 year over 7000 driver (other drivers with even more experience and certainly more tact are on here) go ahead listen to people who posted a few high dollar earnings And Then Disappeared...

Smdh


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## Christinebitg (Jun 29, 2018)

Corelist2121 said:


> walk you through this process one at a time no sweat!


You can do all that.

Just don't forget that you'll have to keep corporate records and file an extra tax return.


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## Karen Stein (Nov 5, 2016)

About the only safe way to lease is to base your payment on the miles you actually drive - I use ten cents a mile.

Check your lease (or loan) terms regarding your making advance or supplemental payments.

For example: My current loan is for "simple" interest. This means I pay based only a straight percentage on what I owe. There are no fees or penalties for early or partial payments. 

As a result, I am way ahead of the payment schedule. More important, I (probably) won't have car wear out before it's paid off.


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## fredfighter (Sep 28, 2018)

SCdave said:


> 2014 Stanza?


Sorry, Sentra.

Brain fart.


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## Corelist2121 (Mar 6, 2019)

Karen Stein said:


> About the only safe way to lease is to base your payment on the miles you actually drive - I use ten cents a mile.
> 
> Check your lease (or loan) terms regarding your making advance or supplemental payments.
> 
> ...


Yes you are correct you have what is called a simple interest loan. You actually own the vehicle legally but on a lease you do not own the vehicle you would actually be renting the vehicle with strict measures in place like Ware and test and milage requirements for the term on the lease that if you went over on the miles that you are appropriated you will have to pay so much a mile over and above what is already approved in the lease that's why leasing a vehicle being an Uber driver would kill you financially at the end of the lease when you have to turn it in unless you decided to buy out your lease at the end the miles would not matter because the lease co. Would not have to remarketing the car because you would be buying it from the lease company because remember you do not own the car on a lease you are basically using the car but have to give it back to these company at the end of the term and with the agreed miles or less or you will have to pay so much per mile that you went over the agreed miles!!!


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## carpentrylai (Mar 10, 2015)

Karen Stein said:


> What is a "car lease?" I'll try to explain.
> 
> It's not like renting an apartment. When you rent an apartment, you get to use it for a year. How much you pay has no relation to how many nights you sleep there.
> 
> ...


Great advise. I have a crazy 7 year note, don't ask, was wells fargo BS. Anyway, every week I pay .10 per mile towards principle only and make regular payments as well. After 1 year, I am on pace to pay the car off in just one more year. But, you must make that principal only payment based on miles driven and loan amount as she pointed out.
My car is 2017 accord lx that I retro fitted with leather from south side trim. bought used for great price. Be a smart shopper as well.


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## melusine3 (Jun 20, 2016)

fredfighter said:


> Also, is the 96% figure a true failure rate, or just the dropout rate? I can imagine many people buying a new (to them) used car and driving Uber to pay for it. Don't know how many could within one year though.


They drop out because they aren't making money, if you don't consider that a failure, I don't know what is.


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