# Why do people say no to new cars for uber? I say yes.



## raylusion (Apr 30, 2017)

If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.



raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.


100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


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## emdeplam (Jan 13, 2017)

Damn you cracked the code. Brilliant. 

Never consider that new is just freaking better. 
All you depreciation math nerds out there take that.

Buy the freaking beemers already and uber on


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## raylusion (Apr 30, 2017)

emdeplam said:


> Damn you cracked the code. Brilliant.
> 
> Never consider that new is just freaking better.
> All you depreciation math nerds out there take that.
> ...


never said better, just common sense.


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## tohunt4me (Nov 23, 2015)

raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.
> 
> 100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


Minus gas . . . minus tires . . .minus oil changes . . . cleaning . . .new seats when the puke stains no longer scrub out . . .


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## Uberyouber (Jan 16, 2017)

get in a wreck and Uber doesn't want to pay out ... hospital bills after a drunk tourist kicks you in the head...other Uber drivers slice your tires... stuff like that...


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## raylusion (Apr 30, 2017)

Uberyouber said:


> get in a wreck and Uber doesn't want to pay out ... hospital bills after a drunk tourist kicks you in the head...other Uber drivers slice your tires... stuff like that...


slice tires? lol i live in pr. getting shot over sliced tires is not gonna happen.


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## azndriver87 (Mar 23, 2015)

more depreciation on a new car, more insurance, it's all expense cost.

you can buy a used car at carmax with maxcare warranty, that will cover as much as manufacture warranty.


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## raylusion (Apr 30, 2017)

azndriver87 said:


> more depreciation on a new car, more insurance, it's all expense cost.
> 
> you can buy a used car at carmax with maxcare warranty, that will cover as much as manufacture warranty.


i bought the 100k/ 6 yr extended warranty.


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## azndriver87 (Mar 23, 2015)

carmax has 6 years, 150,000 miles


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## Adieu (Feb 21, 2016)

Facepalm 

CEL isn't a vehicle problem, it's a CA emissions fault = NOT A PROBLEM in Puerto Rico.


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## azndriver87 (Mar 23, 2015)

cel is not just emission, there's a lot of issues that can happen with CEL


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## CTridz (Feb 20, 2017)

Adieu said:


> Facepalm
> 
> CEL isn't a vehicle problem, it's a CA emissions fault = NOT A PROBLEM in Puerto Rico.


The MIL (malfunction indicator lamp, better known as a check engine light) can indicate a wide variety of problems. Most of the things that are monitored have some effect on emissions but it is not limited to that. A MIL on condition could be related to poor fuel economy, slow acceleration, engine misfire or transmission problems.

Here in the mainland USA, you can bring your car to most auto parts stores and they will scan the codes for free. I'd imagine they probably do that in PR too. If the check engine light is ever flashing, you need to get that checked right away - it is usually a misfire that could cause damage to the engine.

The fact that the MIL is on is not a big deal. But it pays to know the reason why it is on and what components are affected.


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## Adieu (Feb 21, 2016)

Buy a bluetooth dongle.

Scan the code with Torque app, and if it's the usual nonsense, clear it.


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## PHXTE (Jun 23, 2015)

raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101.


Err....ok. So why not save yourself a bunch of money and buy something used and fully depreciated that gets good gas mileage like a used Prius?



> Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.


Most manufacturers will void your warranty if they find out you're ridesharing with it. At any rate, a warranty is there to cover defects in the product, not to replace wear and tear items because you're driving your car into the ground by ridesharing it.



> 100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


Uber and Lyft love people like you who lack the most basic understanding of economics and accounting theory. You're a textbook example of Dunning-Kruger.


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## swingset (Feb 26, 2017)

raylusion said:


> People this is math 101. Buy a brand new car, get the extended warranty.


The instant you drive off the lost you just lost thousands in depreciation. That will fix a lot of check engine lights, ya know. You can never recoup that amount, ever. Plus, you have to add the cost of that warranty over many years where you're unlikely to have a problem at all, basically paying an insurance premium for nothing.

Math? Tell me more about it, sensei.


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## CTridz (Feb 20, 2017)

I'm not sure how to put those numbers into perspective since I do not know the cost of living in Puerto Rico - lower wages can be ok if you have a low cost of living. I think you would also want to know the purchase price of the car to figure out how long it would take to get a return on the investment. Things like gasoline and auto parts are going to be priced differently in PR versus mainland USA, so you would want to look at all the numbers before making a judgement. But depreciation is almost always the biggest kick in the butt when buying a brand new car. And the faster you rack up the miles, the faster it depreciates.


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## PHXTE (Jun 23, 2015)

CTridz said:


> I'm not sure how to put those numbers into perspective since I do not know the cost of living in Puerto Rico - lower wages can be ok if you have a low cost of living. I think you would also want to know the purchase price of the car to figure out how long it would take to get a return on the investment. Things like gasoline and auto parts are going to be priced differently in PR versus mainland USA, so you would want to look at all the numbers before making a judgement. But depreciation is almost always the biggest kick in the butt when buying a brand new car. And the faster you rack up the miles, the faster it depreciates.


Come on, 'bro. It's Math 101. Go buy the newest, most expensive car you can find because everyone knows fuel economy is the only thing that matters.


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## Mars Troll Number 4 (Oct 30, 2015)

My last taxi I owned... was a Toyota Sienna, 100,000 mile warranty...

I blew through it in 20 months.

5 years year later it was worthless (it needed engine redbuild, brake job, ****** was close to dying) and interior condition was not good) $5000 to get it drivable, $4,000 KBB with how many miles was on it and the overall interior condition.

Think about this real hard bro...

What if your car doesn't stay together until your done paying it off?


I'm serious about that number of miles as well....

Also not every one of your miles will be paid, only a portion. Some markets are close to 50% paid, some are as low as 30% paid.

Also uber can cut your rate at any moment, without warning.

And for the record, i collected over $250,000 in gross fares over almost 5 years using it as a taxi.


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## elelegido (Sep 24, 2014)

raylusion said:


> 100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


It is indeed basic math, but you're getting mixed up. You're talking about car costs and then jumping across to revenue. Revenue is not relevant in car comparisons within the same vehicle class. Supposing you do you gross $44,000 for 100,000 miles; you're going to gross that amount whether you drive a $20,000 factory fresh car or a $4,000 hooptie. You get paid exactly the same whether your car is brand new or 10 years old.

So, we can take revenue out of the equation. Apart from being irrelevant when comparing vehicles, it's profit that matters, not revenue. And to work out profit, you need to look at cost per mile and, whichever way you look at it, it is fact that a 10 year old Toyota is going to cost less per mile than a brand new one, and yield you more profit.


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## raylusion (Apr 30, 2017)

remember that's just the .44 per mile. don't forget the .30 per minute, which is $18 an hour. and the ,65 base fare? if you drove 100000 miles that means you put in time also .30 x 100,000 is another $30,000. 44,000x30,000=$73,0000, without base fare and tips during this 100,000 span, and the reason i use the 100,000 miles is because the extended warranty. will be granted if they dont know you use it for uber. so $27,000 after interest. (Car) now you will make $77,000 in a a 100,000 mile long run anyway. still not counting base fare. lets say 2000 times you get the base fare in a 100000 period. Lets say you get the base fare 30,000x in 100,000 mile span. thats another $19,500. so lets add this up in 100,000 miles using a $27,000 car with interest fully paid for, at a 5.4 apr. you get in 100,000 miles $44,000 for miles(0.44) another $30,000 for your time (.30) and another $19,500 in base fare (.60)
you have a warranty that covers any malfunction to the car. $93,500 you can make in a 100,000 miles span, with a toyota yaris 2017.


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## elelegido (Sep 24, 2014)

Your math is way off here. First, the figures you quote that you "make" are actually gross revenue. That's what the pax pays. There are lots of expenses between what the pax pays and what you "make" (keep for yourself). You also have to take into account Uber commission (25%), gasoline and maintenance.

You're also calculating what your gross revenue would be over 100,000 _paid_ miles of Ubering. However, best case scenario, revenued miles (miles where there is a paying pax in the car) is around 50% of total miles. So if you drive 100,000 miles total for Uber, 50,000 of those would be paid. Gross revenue for the mileage part of that would be 50,000 x $.044 = $22,000.

There is also a time element of $0.30 per minute. But what you did above, multiplying the rate per minute by the number of miles, isn't correct. To work out how much you would gross because of the time charge over 50,000 miles, you need to make an assumption about the average speed you do while on a trip. In urban / suburban and some highway driving, 20 mph is a fair average. At 20 miles per hour it takes you 3 minutes to drive 1 mile, therefore the time element pays a gross of 3 x 0.30 = 90 cents per mile. Over the 50,000 paid miles that would be 50,000 x 0.9 = $45,000.

Finally, there's the base fee of 60 cents. If we assume an average trip length of 3 miles, then in 50,000 paid miles you would do 16,666 trips. The total amount you would gross in base over those trips would be 16,666 x 0.60 = $10,000.

Total gross revenue for the 50,000 paid miles would be 22,000 + 45,000 + 10,000 = $72,000.
Then you take out Uber's 25% commission, which on $72k would be $18,000. $72,000 - $18,000 = $54,000.
Then you take out gasoline cost. 100,000 total miles divided by 35 mpg average = 2,857 gallons. If gas cost is $2.30 per gallon then the total gas cost is 2,857 x 2.30 = $6,571. $54,000 - $6,571 = $47,429
Depreciation, the cost of using the car, depends on how many years it would take to drive those 100,000 miles. Over three years, the depreciation cost on a new Yaris would be around $10,000. $47,429 - $10,000 = $37,429.
If you're borrowing money to buy the car to Uber in, then you pay interest on the loan. You would pay, in interest, around $2,000 over three years on that loan amount. $37,429 - $2,000 = $35,429
Finally, there's maintenance. Oil changes, tires, servicing. $3,000 over the 100,000 miles woul be a fair estimate. $35,429 - $3,000 = $32,429.

So, when all of the expenses are included, the profit (what you "make") is around $32,000 over the 100,000 miles. You would not make $93,500 driving 100,000 miles on Uber; not even close. You'd make around 1/3 of that amount.

If you worked it out by the hour it'd be around $6 hour, slightly less than minimum wage. This is in keeping with what people make driving Uber in the USA. Uber sets its driver pay so that it's round about minimum wage - if they made it too much lower they would have problems attracting drivers.



tohunt4me said:


> Minus gas . . . minus tires . . .minus oil changes . . . cleaning . . .new seats when the puke stains no longer scrub out . . .


Minus Uber commission... minus depreciation... minus interest on the car loan


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## The Mollusk (Feb 13, 2016)

Hahaha. This guy thinks he's gonna get 100k paid miles in Puerto Rico. ElElegidos math is much closer , although I'm going to be a lot more realistic and say he'll make nearer to 12k/ year. Some points to consider ;

- the island is in exodus. Full economic meltdown. While that means you can rent an apt for $300, it also means that no one has money. It's the running joke here that the islands biggest employer is Disability.

- from all the clues I see, this guy is actually a Toyota salesman who's trying to find a way to drum up business. " Buy a new Yaris! Make 100k!"


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## Hagong (Jan 17, 2017)

raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.


Shocks are a wear and tear item. Not covered by warranty.


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## Safe_Driver_4_U (Apr 2, 2017)

the math is easy, Travis realized there are millions of used cars that can be bought for about $5k, these cars will last about 3 years as Uber car, this is an untapped source of company capital. This is the real world formula, determine how many miles average a driver can do in any given market. Determine baseline existence cost if living in that market. Calculate miles x rate / 3 (cars useful life) minus IRS mileage rate x gross miles = 0 or driver dreams he is making a profit. What is really going on is driver is subsidizing Uber by providing capital expenses to the company for free. Never ever buy a new car for Uber.


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## elelegido (Sep 24, 2014)

The Mollusk said:


> Hahaha. This guy thinks he's gonna get 100k paid miles in Puerto Rico. ElElegidos math is much closer , although I'm going to be a lot more realistic and say he'll make nearer to 12k/ year. Some points to consider ;
> 
> - the island is in exodus. Full economic meltdown. While that means you can rent an apt for $300, it also means that no one has money. It's the running joke here that the islands biggest employer is Disability.
> 
> - from all the clues I see, this guy is actually a Toyota salesman who's trying to find a way to drum up business. " Buy a new Yaris! Make 100k!"


Based on 3 years / 100,000 miles I make it $32,400 over that period. That's $10,800 per year. Maybe he'll make an extra grand and make $12,000 a year as you suggest. Either way, it's around that mark.



Safe_Driver_4_U said:


> the math is easy, Travis realized there are millions of used cars that can be bought for about $5k, these cars will last about 3 years as Uber car, this is an untapped source of company capital. This is the real world formula, determine how many miles average a driver can do in any given market. Determine baseline existence cost if living in that market. Calculate miles x rate / 3 (cars useful life) minus IRS mileage rate x gross miles = 0 or driver dreams he is making a profit. What is really going on is driver is subsidizing Uber by providing capital expenses to the company for free. Never ever buy a new car for Uber.


I'm not sure about your formulas but yeah, Uber's business model depends on getting drivers to buy and maintain the car.


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## PHXTE (Jun 23, 2015)

raylusion said:


> remember that's just the .44 per mile. don't forget the .30 per minute, which is $18 an hour. and the ,65 base fare?


That's only time **that you are on a ride**. Not time spent sitting around twiddling your thumbs. I don't know what Puerto Rico is like, but here in Phoenix, there's no way you're going stay constantly busy to collect 30 cents/minute for the entire hour. Deadheading, repositioning, quiet times, yeah, you're not going to get anywhere near that.



> if you drove 100000 miles that means you put in time also .30 x 100,000 is another $30,000.


You're getting yourself confused here. That's 30 cents per *minute*, not per mile. Mileage is irrelevant.



> 44,000x30,000=$73,0000, without base fare and tips during this 100,000 span, and the reason i use the 100,000 miles is because the extended warranty. will be granted if they dont know you use it for uber. so $27,000 after interest. (Car) now you will make $77,000 in a a 100,000 mile long run anyway.


Again, the nuance you're missing here is those 100k miles you put on your car won't all be paid miles. Even if you're lucky, it'll be a 1:1 ratio, so for 50,000 paid miles, you're going to be putting another 50k unpaid miles on it.



> you have a warranty that covers any malfunction to the car.


Again, that's not true. **Wear and tear** items will not be covered by your warranty which is going to be the bulk of your expenses. Getting an extended warranty on something like a Yaris is a waste of money anyway.



> $93,500 you can make in a 100,000 miles span, with a toyota yaris 2017.


Of course, you're ignoring your expenses here and the time it's going to take to make that money.


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## elelegido (Sep 24, 2014)

PHXTE said:


> Getting an extended warranty on something like a Yaris is a waste of money anyway.


Those are almost pure profit for the dealership.


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## since05/16 (Jan 7, 2017)

In  again by all these numbers. 
Probably why I drive around doing uber.
I have a feeling if I understood every thing clearly.......i might get a janitor position


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## raylusion (Apr 30, 2017)

I had a funny feeling i was gonna get trolled. Shocks busts, yes it is covered by warranty, remember the warranty lasts 100k/6yrs whatever comes first. i understand tires and brakes and gas are covered by me. $26 to fill the tank. that's 322 miles i can run for that. i only do it 2x a week. i am a fulltime doorman.



PHXTE said:


> Err....ok. So why not save yourself a bunch of money and buy something used and fully depreciated that gets good gas mileage like a used Prius?
> 
> Most manufacturers will void your warranty if they find out you're ridesharing with it. At any rate, a warranty is there to cover defects in the product, not to replace wear and tear items because you're driving your car into the ground by ridesharing it.
> 
> Uber and Lyft love people like you who lack the most basic understanding of economics and accounting theory. You're a textbook example of Dunning-Kruger.


you said it. if they find out, whos stupid enough to tell them?


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## raylusion (Apr 30, 2017)

raylusion said:


> I had a funny feeling i was gonna get trolled. Shocks busts, yes it is covered by warranty, remember the warranty lasts 100k/6yrs whatever comes first. i understand tires and brakes and gas are covered by me. $26 to fill the tank. that's 322 miles i can run for that. i only do it 2x a week. i am a fulltime doorman.
> 
> you said it. if they find out, whos stupid enough to tell them?


You must tell us if the vehicle use changes during the period of cover; for example if your vehicle is used: - for hire, fare or reward, or as a taxi, loan or driving school vehicle; - as a rental vehicle (except for Toyota vehicles where this use has only occurred prior to the period of cover); - for motor sports or as an emergency, security or law enforcement vehicle; - as a courier vehicle or for mail delivery; - for fast food delivery or towing for income; or - on mining sites.



elelegido said:


> Your math is way off here. First, the figures you quote that you "make" are actually gross revenue. That's what the pax pays. There are lots of expenses between what the pax pays and what you "make" (keep for yourself). You also have to take into account Uber commission (25%), gasoline and maintenance.
> 
> You're also calculating what your gross revenue would be over 100,000 _paid_ miles of Ubering. However, best case scenario, revenued miles (miles where there is a paying pax in the car) is around 50% of total miles. So if you drive 100,000 miles total for Uber, 50,000 of those would be paid. Gross revenue for the mileage part of that would be 50,000 x $.044 = $22,000.
> 
> ...


yes my math was wrong, but we have forgotten, surge, boost and tips. i bought the new car, because i need it. im a full time doorman. i only uber 2x a week. 5-6 hours. lets keep that in mind.


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## Fuzzyelvis (Dec 7, 2014)

raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.
> 
> 100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


One more thing. It's 6 years OR 100,000 miles I assume, so it's more like a 2 year warranty if you're doing full time uber.



raylusion said:


> You must tell us if the vehicle use changes during the period of cover; for example if your vehicle is used: - for hire, fare or reward, or as a taxi, loan or driving school vehicle; - as a rental vehicle (except for Toyota vehicles where this use has only occurred prior to the period of cover); - for motor sports or as an emergency, security or law enforcement vehicle; - as a courier vehicle or for mail delivery; - for fast food delivery or towing for income; or - on mining sites.
> 
> yes my math was wrong, but we have forgotten, surge, boost and tips. i bought the new car, because i need it. im a full time doorman. i only uber 2x a week. 5-6 hours. lets keep that in mind.


Then why buy a car specifically with uber in mind in the first place?


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## elelegido (Sep 24, 2014)

raylusion said:


> yes my math was wrong, but we have forgotten, surge, boost and tips. i bought the new car, because i need it. im a full time doorman. i only uber 2x a week. 5-6 hours. lets keep that in mind.


As I said, if you were going to buy anyway then that's fair enough. As long as people don't plan on making a lot of profit Ubering with a new car there won't be any disappointment.


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## The Mollusk (Feb 13, 2016)

raylusion said:


> I had a funny feeling i was gonna get trolled. Shocks busts, yes it is covered by warranty, remember the warranty lasts 100k/6yrs whatever comes first. i understand tires and brakes and gas are covered by me. $26 to fill the tank. that's 322 miles i can run for that. i only do it 2x a week. i am a fulltime doorman.
> 
> you said it. if they find out, whos stupid enough to tell them?


Not sure what you expected. Especially when you come and make a trolly claim of "buy a Yaris , make 100k".

We need to revise your numbers now....you drive 2 days a week. Gonna estimate your yearly profit comes down to about $3,000....and I still feel that's generous. You're only one incident away from ending up in the negative.


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## UsedToBeAPartner (Sep 19, 2016)

raylusion said:


> remember that's just the .44 per mile. don't forget the .30 per minute, which is $18 an hour. and the ,65 base fare? if you drove 100000 miles that means you put in time also .30 x 100,000 is another $30,000. 44,000x30,000=$73,0000, without base fare and tips during this 100,000 span, and the reason i use the 100,000 miles is because the extended warranty. will be granted if they dont know you use it for uber. so $27,000 after interest. (Car) now you will make $77,000 in a a 100,000 mile long run anyway. still not counting base fare. lets say 2000 times you get the base fare in a 100000 period. Lets say you get the base fare 30,000x in 100,000 mile span. thats another $19,500. so lets add this up in 100,000 miles using a $27,000 car with interest fully paid for, at a 5.4 apr. you get in 100,000 miles $44,000 for miles(0.44) another $30,000 for your time (.30) and another $19,500 in base fare (.60)
> you have a warranty that covers any malfunction to the car. $93,500 you can make in a 100,000 miles span, with a toyota yaris 2017.


You get exactly the same income with a 2010 car and there's not a chance you are going to have to spend $27,000 in repairs (what your new car costs) and you are not going to have the massive depreciation loss. I am glad you are happy but your math skills suck.


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## Rex8976 (Nov 11, 2014)

So a new car stays a new car as long as you bought it as a new car?

A new car doesn't become old because it was new, right?

Just checkin'!

*Why do people say no to new cars for Uber?*

Because anyone who has spent more than a minute driving for a living knows a new car stops being new.

A 2-3 year old vehicle serves the same purpose for considerably less money.

Me: Owned & operated 12 taxis over 15 years, 85 vehicles, many ran to 350,000 miles or more.

Here's a recently retired taxi. 2012 Town & Country. Guess the mileage.










Maintenance is the key. That and accepting the fact that the vehicle will be a door stop at the end of it's useful life.

Purchased from nationally known car rental company in 2014 at $9,000.00 with 45,000 miles.

Currently being used for "car service" work and has 220,000 miles.

That's 175,000 hard miles.

Maintenance. Not new.


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## Lee239 (Mar 24, 2017)

raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.
> 
> 100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


and in one year your warranty is not valid because you have driven 100K miles.


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## UsedToBeAPartner (Sep 19, 2016)

Average full time Uber is driving 200-300 miles per day 5-6 days a week. So, average 250 miles and average 5.5 days per week and 52 weeks you hit 71,500 miles in one year. Not only is your warranty nearly gone you need a new set of tires as well! Not only that but your $27,000 car has a $6100 trade-in value due to the extreme mileage (kbb.com). I suspect you owe way more than that after 1 year so you are upside down and stuck with a car you lost $21,000 on in just that one year. Year 2 and 150,000 miles should be a little better, however!


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## raylusion (Apr 30, 2017)

2 days week im gonna hit 100,000k do you guys even read what im writing?


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## The Mollusk (Feb 13, 2016)

27k for a new Yaris? What a deal ?

I actually have some "conservation" land id like to sell to you here in Florida. It's worth like , 280k, but I'm pretty much out of the country right now , so I'm doing you a favor for 50k.


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## raylusion (Apr 30, 2017)

The Mollusk said:


> 27k for a new Yaris? What a deal ?
> 
> I actually have some "conservation" land id like to sell to you here in Florida. It's worth like , 280k, but I'm pretty much out of the country right now , so I'm doing you a favor for 50k.


5.4apr. thats how much i would pay after the 72mnth loan. 22k pay off right now. 2 mnths old. read


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## The Mollusk (Feb 13, 2016)

raylusion said:


> 5.4apr. thats how much i would pay after the 72mnth loan. 22k pay off right now. 2 mnths old. read


.....you're taking 6 years to pay off a Yaris....

I regret responding to your thread.


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## elelegido (Sep 24, 2014)

The Mollusk said:


> .....you're taking 6 years to pay off a Yaris....
> 
> I regret responding to your thread.


That's what new Yaris cost in Puerto Rico. Cars in Europe are even more expensive. Some people like having a new car for personal use; there's nothing wrong with that if that's what they want to spend their money on. Buying new just as an Uber tool is a different story; that makes no sense. But buying new for private miles is ok. If nobody did that then there'd be a lot fewer used bargains for us to buy.


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## steveK2016 (Jul 31, 2016)

One thing you are not taking into account is that's $0.44 a mile gross. $0.33 net after Uber fees.

Also, most UberX drivers will run 50/50 dead miles or worse vs paid miles. So 100,000 miles will usually be just about 50,000 paid miles. Now your sweet $44,000 figure is really $16,500.

Still not terrible, but would have been better if you didn't lose $5,000 in depreciation the second you drove it off the lot...



raylusion said:


> 5.4apr. thats how much i would pay after the 72mnth loan. 22k pay off right now. 2 mnths old. read


For a yaris...


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## UsedToBeAPartner (Sep 19, 2016)

raylusion said:


> 2 days week im gonna hit 100,000k do you guys even read what im writing?


So you are not buying a new car to use for Uber (2 days a week is a just an ever so slight hobby) but your topic is "Why do people say no to new cars for uber? I say yes". Buying a new car is a good thing (unless you have to pay 5.4% apr in the current interest rate environment). You keep telling folks to read but you post information contrary to your original post. You can't drive 100,000 miles per year and only drive 2 days a week but that's your formula for making $44,000 year. I am guessing this poster is really a 14-16 year old high school student who is working on an Uber story for some kind of a business class. Hopefully, when he gets all the correct feedback he will be able to write a class paper explaining why no one should ever buy a new car to drive for Uber. If you have the time, you should also include why no one should fall into the Uber lease ruse!


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## The Mollusk (Feb 13, 2016)

It could be that English is his second language and his translations are off. That's insane that puerto ricans are paying that much for a Yaris . I had mine for 10 years by the way. Paid 12k-13k at carmax. Anywhere else would have been 10-12k. Had 40k miles on it. 2 yrs old.


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## autofill (Apr 1, 2016)

raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.
> 
> 100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


Profile name matched post. Raylusion ~ illusion ~ delusion... get it?


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## Flacco (Apr 23, 2016)

raylusion said:


> never said better, just common sense.


"Common sense is not so common" Voltaire



raylusion said:


> remember that's just the .44 per mile. don't forget the .30 per minute, which is $18 an hour. and the ,65 base fare? if you drove 100000 miles that means you put in time also .30 x 100,000 is another $30,000. 44,000x30,000=$73,0000, without base fare and tips during this 100,000 span, and the reason i use the 100,000 miles is because the extended warranty. will be granted if they dont know you use it for uber. so $27,000 after interest. (Car) now you will make $77,000 in a a 100,000 mile long run anyway. still not counting base fare. lets say 2000 times you get the base fare in a 100000 period. Lets say you get the base fare 30,000x in 100,000 mile span. thats another $19,500. so lets add this up in 100,000 miles using a $27,000 car with interest fully paid for, at a 5.4 apr. you get in 100,000 miles $44,000 for miles(0.44) another $30,000 for your time (.30) and another $19,500 in base fare (.60)
> you have a warranty that covers any malfunction to the car. $93,500 you can make in a 100,000 miles span, with a toyota yaris 2017.


Are you familiar with deadheading or dead miles? Did you figure that into your equation? I drive XL only and drive exactly twice as many miles as I get paid for and had proof for my income tax return. There are a lot of dead miles in this gig. Best of luck anyway!!

1. Drive smart
2. Figure out what works for you
3. Try to get surge as often as possible
4. Do not chase surge unless you know it will last


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## raylusion (Apr 30, 2017)

Well the reason why the yaris is expensive here in Puerto Rico is because we have to bring it in a ship. I assume the people that don't understand must be taxi drivers making below minimum wage.


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## raylusion (Apr 30, 2017)

elelegido said:


> Your math is way off here. First, the figures you quote that you "make" are actually gross revenue. That's what the pax pays. There are lots of expenses between what the pax pays and what you "make" (keep for yourself). You also have to take into account Uber commission (25%), gasoline and maintenance.
> 
> You're also calculating what your gross revenue would be over 100,000 _paid_ miles of Ubering. However, best case scenario, revenued miles (miles where there is a paying pax in the car) is around 50% of total miles. So if you drive 100,000 miles total for Uber, 50,000 of those would be paid. Gross revenue for the mileage part of that would be 50,000 x $.044 = $22,000.
> 
> ...


you forgot 3 things, boost,surge and tips. cmon! and for the 18th time. im not doing it full time.


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## elelegido (Sep 24, 2014)

raylusion said:


> you forgot 3 things, boost,surge and tips. cmon! and for the 18th time. im not doing it full time.


You already replied to that post.


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## Fuzzyelvis (Dec 7, 2014)

raylusion said:


> Well the reason why the yaris is expensive here in Puerto Rico is because we have to bring it in a ship. I assume the people that don't understand must be taxi drivers making below minimum wage.


I have a Kia. It came on a ship. I didn't pay near that much. The ship is not the reason.



raylusion said:


> you forgot 3 things, boost,surge and tips. cmon! and for the 18th time. im not doing it full time.


Tips! Now we know he's joking...


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## elelegido (Sep 24, 2014)

Fuzzyelvis said:


> I have a Kia. It came on a ship. I didn't pay near that much. The ship is not the reason.


There are a few reasons. One of the biggest factors is level of consumption in the local market. Americans buy huge volumes of cars and so prices are lower. In smaller markets such as Puerto Rico there isn't the same sales volume, so prices are higher. Competition is also a factor.


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## Strange Fruit (Aug 10, 2016)

The rules of the forum say that only sponsors of the site get to advertise. Did Toyota pay for this spot? If not, they should like pretend it isn't Toyota or something, like have a Fuber name and not a Toyota logo. Or be Karl Stein or something. But a Toyota logo....*really*?
And why is the first page of people arguing about what the advertisement says? Isn't the usual response to an ad to nod and move on with yr day? This is weird. 
And why is it pushing the yaris? Priuses are awesome.
Hey raylusion, do you think they can sponsor me a bit? I actually say Priuses are awesome all the time for free, but I'd probably do it more if I had a little more motivation.


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## UsedToBeAPartner (Sep 19, 2016)

raylusion said:


> you forgot 3 things, boost,surge and tips. cmon! and for the 18th time. im not doing it full time.


You forgot the most important thing......If you want to buy a new car for your own personal use and you are happy with the cost then you have done exactly what you should do. Driving a couple of days a week has nothing what-so-ever to do with the cost of that vehicle. Maybe you are just trying to figure out a way to justify having paid that much for that little.
In any case, if you are buying a car to be used mostly for Uber and a bit of personal mileage, there is no way that a new car makes any sense. If you take a deep breath and do the math, even you will have to agree that buying a new car to drive Uber full time makes exactly ZERO sense. The only thing worse is one of those Uber lease deals!


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## bsliv (Mar 1, 2016)

From a purely economic point of view, no one should ever buy a new car. But millions get bought every year, some by smart people. There is value from buying a new car that is different for everyone. No one should ever buy a new, state of the art cell phone either.


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## Trebor (Apr 22, 2015)

Adieu said:


> Buy a bluetooth dongle.
> 
> Scan the code with Torque app, and if it's the usual nonsense, clear it.


I use the elm23 and obd fusion - elm23 is less than $15 now.



raylusion said:


> If u buy a brand new car make sure the mpg is high. People this is math 101. Buy a brand new car, get the extended warranty. Got a yaris 2017 6yrs 100k warranty. no questions asked, check engine? bring it, shocks blew? bring it. all covered.
> 
> 100,000 x .44 per mile (puertorico) is $44,000. thats without the .30 per minute. and the base fare. you tell me. Once again math 101.


If you live in a large city like myself, its not hard to rack up 30-40k miles/year part time.

So, that warranty is gone within 2 years. 3 years tops.



steveK2016 said:


> One thing you are not taking into account is that's $0.44 a mile gross. $0.33 net after Uber fees.
> 
> Also, most UberX drivers will run 50/50 dead miles or worse vs paid miles. So 100,000 miles will usually be just about 50,000 paid miles. Now your sweet $44,000 figure is really $16,500.
> 
> ...


Yea, your looking at 22k revenue on that Yaris once you factor in dead miles.

22k dollars to pay it off? If you drive more than part time, that car is goign to last 2-3 years at the most. You can easily buy $5,000 cash cars every year for three years and only pay $15,000 or $7,000 cheaper.

Hell, you can find them for less. At most your only going to replace the brakes, tires, and battery which can be done for less than $1,000 easily. The car should last for at least a year or 50k miles after that, unless you just dont look to see the engine is falling out already.
.


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## raylusion (Apr 30, 2017)

Strange Fruit said:


> The rules of the forum say that only sponsors of the site get to advertise. Did Toyota pay for this spot? If not, they should like pretend it isn't Toyota or something, like have a Fuber name and not a Toyota logo. Or be Karl Stein or something. But a Toyota logo....*really*?
> And why is the first page of people arguing about what the advertisement says? Isn't the usual response to an ad to nod and move on with yr day? This is weird.
> And why is it pushing the yaris? Priuses are awesome.
> Hey raylusion, do you think they can sponsor me a bit? I actually say Priuses are awesome all the time for free, but I'd probably do it more if I had a little more motivation.


im just a simple peasant, with a good job, and tryin to side hustle on uber. that is all.


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## Shea F. Kenny (Jan 3, 2015)

Miles are miles, with respect to any warranty. It doesn't matter how those miles are put on a vehicle. I spent 3500 on a lifetime warranty, which is pretty much a bumper to bumper warranty, except for tires, wipers, battery and fluid changes. Thus, it will always ride like a brand new car. ;-)


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## Mars Troll Number 4 (Oct 30, 2015)

Another important thing to keep in mind is that the rates your getting today won't be the rates getting tomorrow.

Orlando rates are currently less than 50% of what they used to be.


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## Ms Stein Fanboy (Feb 11, 2017)

Strange Fruit said:


> The rules of the forum say that only sponsors of the site get to advertise. Did Toyota pay for this spot? If not, they should like pretend it isn't Toyota or something, like have a Fuber name and not a Toyota logo. Or be Karl Stein or something. But a Toyota logo....*really*?
> And why is the first page of people arguing about what the advertisement says? Isn't the usual response to an ad to nod and move on with yr day? This is weird.
> And why is it pushing the yaris? Priuses are awesome.
> Hey raylusion, do you think they can sponsor me a bit? I actually say Priuses are awesome all the time for free, but I'd probably do it more if I had a little more motivation.





raylusion said:


> im just a simple peasant, with a good job, and tryin to side hustle on uber. that is all.


Niicccce,
He lost the logo and got a car photo. 
"80% of all Corollas sold are still on the streets". I find that hard to believe, I mean not cuz I think a Corolla is bad, and I wouldn't know but since the 80s Camrys and Corollas have been the most plentiful old cars on the road, along with Hondas, so I've always assumed those were the made to last cars. But 80% seems a bit much. I don't remember the last time I saw a Corolla from the 80s, but I bet when people bought them new in the 80s, there were a bunch of new Corollas. Where are all those Corollas if 80% of *all Corollas *sold are still on the road?

Is the moderator going to do something about Toyota trying to sell cars on the forum? Fairly, if it can't be proven that's what's happening, then not fair to kick someone off, but a ****ing Toyota logo comes to the forum and says "you should buy a new Toyota to do Uber". Thanks Toyota. Go to a Toyota dealer and try to get a car financed with your Uber income, and the total will be double the original purchase price. (and that wasn't because of my credit cuz they didn't check yet, they said "if ur approved, it will come out to #### after 4 years of weekly payments, and it was double the price of the car. And I was looking at a used car. Imagine a new one. Raylusion is evil Toyota shill, or just really deluded)


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## raylusion (Apr 30, 2017)

Ms Stein Fanboy said:


> Niicccce,
> He lost the logo and got a car photo.
> "80% of all Corollas sold are still on the streets". I find that hard to believe, I mean not cuz I think a Corolla is bad, and I wouldn't know but since the 80s Camrys and Corollas have been the most plentiful old cars on the road, along with Hondas, so I've always assumed those were the made to last cars. But 80% seems a bit much. I don't remember the last time I saw a Corolla from the 80s, but I bet when people bought them new in the 80s, there were a bunch of new Corollas. Where are all those Corollas if 80% of *all Corollas *sold are still on the road?
> 
> Is the moderator going to do something about Toyota trying to sell cars on the forum? Fairly, if it can't be proven that's what's happening, then not fair to kick someone off, but a &%[email protected]!*ing Toyota logo comes to the forum and says "you should buy a new Toyota to do Uber". Thanks Toyota. Go to a Toyota dealer and try to get a car financed with your Uber income, and the total will be double the original purchase price. (and that wasn't because of my credit cuz they didn't check yet, they said "if ur approved, it will come out to #### after 4 years of weekly payments, and it was double the price of the car. And I was looking at a used car. Imagine a new one. Raylusion is evil Toyota shill, or just really deluded)


It's not ok to hate


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## NorCalPhil (Aug 19, 2016)

I'll simply say this. You have a 6 year car note. You are paying 5% interest. You failed math, don't understand money, and have no understanding of the level of RISK you are putting yourself at by doing the above, not to mention adding Uber into the mix.


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## UberDez (Mar 28, 2017)

NorCalPhil said:


> I'll simply say this. You have a 6 year car note. You are paying 5% interest. You failed math, don't understand money, and have no understanding of the level of RISK you are putting yourself at by doing the above, not to mention adding Uber into the mix.


I don't think taking a long term loan on a car is horrible , I've always taken the longer loan but I usually pay it off in half the time . my last loan was 5 years I paid it off in 25 months but there were a couple months in there where I only made the minimum payment since there were some other expenses that came up .
Especially considering it's a Yaris that's about as cheap as a car as you can buy new , I still don't think it was a great decision but not horrible either .
Saying that I'd never buy a car knowing that I was dependent on my Uber earnings considering anything can happen and this gig can disappear . One pax that is upset about a surge ride can claim you were drunk, on drugs or sexually assault them and BAM you're gone


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## raylusion (Apr 30, 2017)

NorCalPhil said:


> I'll simply say this. You have a 6 year car note. You are paying 5% interest. You failed math, don't understand money, and have no understanding of the level of RISK you are putting yourself at by doing the above, not to mention adding Uber into the mix.


I make $1000 a week as a doorman, how is this a bad decision?


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## NorCalPhil (Aug 19, 2016)

raylusion said:


> I make $1000 a week as a doorman, how is this a bad decision?


You bought a new car on credit.

Money affords you opportunity. Sure, you can go into debt to buy a depreciating asset like a new car. But what is the opportunity cost? Lets say instead of spending $27k on a new car, you buy a used car for $7k cash. Sure, takes a couple of months to save up for it. Maybe you buy one for $3k. Regardless...

For the next 6 years, you put your car payment into a savings account. At the end of six years, you take that 27k and invest 20k of it in the stock market and get an 8% return without ever adding any more money. You use the other $7k to buy your next used car.

In 20 years, you would have investments worth $112k
In 30 years, that would be $265k
Got 40 years, now we're talking $628k - you could retire in PR with that amount without doing any other savings your entire life.

Instead, you have a Yaris that you overpaid for. That's how it was a bad decision.


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## raylusion (Apr 30, 2017)

NorCalPhil said:


> You bought a new car on credit.
> 
> Money affords you opportunity. Sure, you can go into debt to buy a depreciating asset like a new car. But what is the opportunity cost? Lets say instead of spending $27k on a new car, you buy a used car for $7k cash. Sure, takes a couple of months to save up for it. Maybe you buy one for $3k. Regardless...
> 
> ...


I guess 60,000 people made the same "stupid" mistake


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## NorCalPhil (Aug 19, 2016)

raylusion said:


> I guess 60,000 people made the same "stupid" mistake


Lol... no, MILLIONS of people make this mistake. Over and over and over. I made it too with my first car purchase.

It's a red pill/blue pill moment. At least you now know the other pill exists. Good luck!


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## The Mollusk (Feb 13, 2016)

raylusion said:


> Well the reason why the yaris is expensive here in Puerto Rico is because we have to bring it in a ship. I assume the people that don't understand must be taxi drivers making below minimum wage.


I assume doormen who take 6 years to pay off toyotas cheapest econobox aren't the best at financials. A big part of the reason goods are so expensive on the island is because the island taxes imports as if it were a foreign market. I've sent a few palettes to PR and was shocked to see how overtaxed it was.



raylusion said:


> I guess 60,000 people made the same "stupid" mistake


You are getting a free education! Sit back and enjoy the ride!


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## elelegido (Sep 24, 2014)

NorCalPhil said:


> Instead, you have a Yaris that you overpaid for. That's how it was a bad decision.


It would be a bad decision for you. Different people place different value on different things.

My roommate spends a fortune on new iPhones, huge TVs, Xbox, PlayStation, stereos etc which to me would be a total waste of money but for him it's what money is for. There is no right or wrong answer, except for buying a new car specifically to do rideshare or delivery in.


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## raylusion (Apr 30, 2017)

elelegido said:


> It would be a bad decision for you. Different people place different value on different things.
> 
> My roommate spends a fortune on new iPhones, huge TVs, Xbox, PlayStation, stereos etc which to me would be a total waste of money but for him it's what money is for. There is no right or wrong answer, except for buying a new car specifically to do rideshare or delivery in.


all i know is im good. my next payment is in june 14,2017.


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