# Vehicle - Rent or rent to own options?



## stevet (Jan 24, 2017)

Hi fellow ants, I am deciding whether to rent a vehicle to drive for Uber for $250 a week, this DOES include include the rego, full insurance and maintenance costs, it is a 2016 Kia Cerato or a Toyota Camry. I can hand it back anytime after 6 weeks with no penalty, or I can purchase the car at anytime and receive 75% of my rental payments I have made towards buying the car. The reason I am thinking this, instead of getting a bank loan, is that renting to buy a car has the ability for me to hand it back anytime after 6 weeks. This will give me a chance to see if I like driving, and if I am good at it. If I like driving and if I am earning decent money, I can stop renting the car and buy it at anytime I want to. Any thoughts anyone? The car I currently have I cannot use as my wife needs it......Thanks everyone


----------



## fields (Jul 11, 2016)

I rent as well, although not rent to own.

At $250 a week I suspect you are limited to 600-1000km a week.

Have a look at splend scroll down to see where they compare buying with renting and rent to own.

It comes out as rent to own being the best option. However, I think after 4 years of Ubering the residual value they use for the vehicle is on the high side.


----------



## stevet (Jan 24, 2017)

fields said:


> I rent as well, although not rent to own.
> 
> At $250 a week I suspect you are limited to 600-1000km a week.
> 
> It comes out as rent to own being the best option. However, I think after 4 years of Ubering the residual value they use for the vehicle is on the high side.


Thank you fields, I appreciate your feedback very much.
Should I allow for 250 klms each day if I am working around 8 hours?
5 days around 1,250 klms?
Cheers


----------



## Dave uberx (Jun 23, 2016)

rent2drive

Unlimited kms, no membership, no bond and don't have to pay anything up front. Just simply turn up, fill out the paperwork and drive away. Family owned business which are also some of the nicest people you would ever meet.


----------



## stevet (Jan 24, 2017)

Unlimited kms, no membership, no bond and don't have to pay anything up front. Just simply turn up, fill out the paperwork and drive away. Family owned business which are also some of the nicest people you would ever meet.[/QUOTE]

Wow, Thank you Dave! I will contact them today, cheers Dave.


----------



## wrb (Jan 17, 2017)

I bought an aurion (brand new) - $130 a week for 4 years then a 4K balloon. Finance was 0% interest and depreciation for tax purposes will be around 6.5K per year. Win, win, win situation....


----------



## stevet (Jan 24, 2017)

wrb said:


> I bought an aurion (brand new) - $130 a week for 4 years then a 4K balloon. Finance was 0% interest and depreciation for tax purposes will be around 6.5K per year. Win, win, win situation....


Thats a great deal wrb, well done. The reason I can't do this is the banks wont give me a loan as they want to see a current income, but i recently left my job of 20 years and I wont have an income till I start ubering. I own a home but even then the bank said no, as they need me to have a current income. The rent to buy option and straight rent option with Splend...they are happy to accept you with no current income. The $260 a week Splend charge is a lot more than a $140 finance deal, but the $260 Splend deal does includes rego, insurance and maintenance which adds up to about $3,600 a year, $70 a week, which I wont have to pay, the $260 is the weekly total all up. I probably prefer $140 a week finance like you did, but without an income currently I cant.....What do you think?


----------



## wrb (Jan 17, 2017)

I had a really crap income that would not support a car loan. I explained to the Toyota finance guy that I would be ubering to pay for it and, they accepted it - just had to pay an extra 1K deposit. I am really lucky as I was heading toward homelessness before I was able to arrange this. I do have another income stream but, it simply was not and never will be enough and, being 58 years old I will probably never be employed again....


----------



## stevet (Jan 24, 2017)

wrb said:


> I had a really crap income that would not support a car loan. I explained to the Toyota finance guy that I would be ubering to pay for it and, they accepted it - just had to pay an extra 1K deposit. I am really lucky as I was heading toward homelessness before I was able to arrange this. I do have another income stream but, it simply was not and never will be enough and, being 58 years old I will probably never be employed again....


Well done mate, good luck, cheers


----------



## stevet (Jan 24, 2017)

wrb said:


> I had a really crap income that would not support a car loan. I explained to the Toyota finance guy that I would be ubering to pay for it and, they accepted it - just had to pay an extra 1K deposit. I am really lucky as I was heading toward homelessness before I was able to arrange this. I do have another income stream but, it simply was not and never will be enough and, being 58 years old I will probably never be employed again....


I will be new to this, do you think in time I can earn $1,000 a week if I drive for 40 hours?


----------



## Dave uberx (Jun 23, 2016)

stevet said:


> Thats a great deal wrb, well done. The reason I can't do this is the banks wont give me a loan as they want to see a current income, but i recently left my job of 20 years and I wont have an income till I start ubering. I own a home but even then the bank said no, as they need me to have a current income. The rent to buy option and straight rent option with Splend...they are happy to accept you with no current income. The $260 a week Splend charge is a lot more than a $140 finance deal, but the $260 Splend deal does includes rego, insurance and maintenance which adds up to about $3,600 a year, $70 a week, which I wont have to pay, the $260 is the weekly total all up. I probably prefer $140 a week finance like you did, but without an income currently I cant.....What do you think?


Did you go with rent 2 drive mate


----------



## stevet (Jan 24, 2017)

Dave uberx said:


> Did you go with rent 2 drive mate





Dave uberx said:


> Did you go with rent 2 drive mate


I phoned them on Wednesday, they said to come in and see them once I have my authority to drive card from RMS, which is great, Thank you Dave


----------



## stevet (Jan 24, 2017)

Looking at the options of getting finance to buy a car versus renting car, renting from Splend or from rent to drive may look more expensive, bank finance is around $180 a week over 4 years for $30,000 car. Renting is $270 a week, $90 more a week. However, renting includes registration approx $1,500 a year, insurance $1,600 a year and maintenance $750 a year. Add these costs to the $180 a week bank loan, it totals around $255 a week versus renting for $270 a week. Renting or rent to own works out about the same ......and you have the option to hand the car back, seems better to me.


----------



## Hardtomakealiving (Jan 16, 2017)

stevet said:


> I will be new to this, do you think in time I can earn $1,000 a week if I drive for 40 hours?


Stevet you won't need to work that many hours if you work certain timeframes


----------



## Itsmyway (Dec 4, 2016)

Hi stevet

My issue with Rent to buy at the end of 4 years is you will have a car that has 260,000 KM on it (based on your 1250KM per week). I have an 11 year old Hyundai that only has just over 120,000KM on it.

Thats a lot of KM's on a car. Also I think you will find that with Splend Rent to buy the payments in the 1st year are higher than $270pw (Based on a 2016 Kia Sportage Si)

It is 1st year $374pw, 2nd year $324pw, 3rd year $274pw and 4th year $224pw. Plus its an 8 week rental period. Plus they charge $0.10 per KM over 1000KM per week. This extra charge DOES go towards your paying off the car so you can pay it off earlier. 
This information is on their website under pricing and plans, plus read the Rent to Buy FAQ.

I rent with Splend only. Every 52,000 KM you get a brand new car and after the 6 week period you only have to give 1 weeks notice. Personally I highly recommend them.

After sitting with my Bean Counter (who specialises in small business accounting) he suggested this is the best way to go. He has set me $$$ targets that I need per week to cover costs (inc GST and tax) the rest is mine.

Always seek advice from a Bean Counter before going into any business. And yes this is a BUSINESS you are going into.

Cheers


----------



## Genoa (Mar 22, 2017)

Hello Itsmyway,

I don't suppose you can share the figures of your rent and the targets your accountant gave you?

Thanks very much.


----------



## Uberknower (Apr 1, 2017)

stevet said:


> Hi fellow ants, I am deciding whether to rent a vehicle to drive for Uber for $250 a week, this DOES include include the rego, full insurance and maintenance costs, it is a 2016 Kia Cerato or a Toyota Camry. I can hand it back anytime after 6 weeks with no penalty, or I can purchase the car at anytime and receive 75% of my rental payments I have made towards buying the car. The reason I am thinking this, instead of getting a bank loan, is that renting to buy a car has the ability for me to hand it back anytime after 6 weeks. This will give me a chance to see if I like driving, and if I am good at it. If I like driving and if I am earning decent money, I can stop renting the car and buy it at anytime I want to. Any thoughts anyone? The car I currently have I cannot use as my wife needs it......Thanks everyone





stevet said:


> Hi fellow ants, I am deciding whether to rent a vehicle to drive for Uber for $250 a week, this DOES include include the rego, full insurance and maintenance costs, it is a 2016 Kia Cerato or a Toyota Camry. I can hand it back anytime after 6 weeks with no penalty, or I can purchase the car at anytime and receive 75% of my rental payments I have made towards buying the car. The reason I am thinking this, instead of getting a bank loan, is that renting to buy a car has the ability for me to hand it back anytime after 6 weeks. This will give me a chance to see if I like driving, and if I am good at it. If I like driving and if I am earning decent money, I can stop renting the car and buy it at anytime I want to. Any thoughts anyone? The car I currently have I cannot use as my wife needs it......Thanks everyone


Hi Everyone

When you rent a car from any of the companies mentioned they will have it in the fine print that there is a GPS tracker in your rental car. None of the Splend rental guys I have ridden with knew that and were surprised at it. Fair enough that the app tracks you when on the Uber platform but I reckon when you are not driving on the Uber platform and just going about your business then it's a bit rich. It's not illegal but it's not made very clear either.

When you rent to buy you can also deduct the depreciation because the contract is a hire purchase deal. Have a look at Carmacars for an alternative to Splend for rent to own.


----------



## fields (Jul 11, 2016)

I think carmacars has the edge over splend. Much better to have the car paid off after two years rather than Splend's 4 years by which time the resale value will be next to nothing and certainly nothing like the $12,500 Splend includes in its estimates.

However, Splend unlike carmacars is right in restricting rentobuy to drivers who have some experience with Uber and have a 4.7 rating. The last thing you want is committing yourself to rentobuy and be kicked off the platform for low ratings.


----------

