# just curious.... those that are opposed to driving UberX with no car payments



## negeorgia (Feb 1, 2015)

So, how much money after fees do I have to bring in for some people to stop telling me it is a bad idea to purchase a car just for UberX and with cash? After 12.5 months, I am at $21,000; we paid $10,000 cash for the car and it has gone from 38,000 miles to 65,000 miles (not all business miles, but most are). I would not take $7,000 for it, but I would take $8,000. It is a 2012 Chrysler 200 with 65,000 miles.


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## Disgusted Driver (Jan 9, 2015)

Unfortunately there is insufficient information to form a good opinion (I have my suspicions however which I will share).

All I can tell is that you drove 27K miles and you got a good deal on the car when you purchased it. 

Using kbb I guestimated that the car was worth roughly 11K when yo bought it and is worth 8K now so you have used up about 3K worth of car. How much gas did you put in, what other expenses did you have? Then you have to consider when are you going to need to change the tires if you keep it, will you need to do a timing chain or belt, ....

I'm going to assume 25 MPG combined, average 2.50 a gallon gas over the year so gas was roughly $2700.

So, 21,000 - 3,000 worth of car - 2700 gas = $15300. then subtract your other expenses to get a net. Now the big question is how many hours did you put in? Divide to get your hourly rate and then you tell me if it was worth it. Only you can answer that question for you.

When you factor all the above in and insurance, telephone data, etc... I'm going to guess you are somewhere around 13K. If you worked 1000 hours you did good by Uber standards, if you worked 2000 hours you are below minimum wage and have lots of extra risk to show for it. 

So, how do you think you did?


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## Chicago-uber (Jun 18, 2014)

$21k and you drove 27k miles including personal miles. That means you had no dead miles or you've done some crazy surges. 
Atlanta is 0.78 per mile. What's your secret, buddy?


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## negeorgia (Feb 1, 2015)

Chicago-uber said:


> $21k and you drove 27k miles including personal miles. That means you had no dead miles or you've done some crazy surges.
> Atlanta is 0.78 per mile. What's your secret, buddy?


Athens 95% of the time, Atlanta 5% of the time.


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## negeorgia (Feb 1, 2015)

Profitability of the market is a seperate issue from my business model of not financing a car or purchasing a car specifically for UberX. It is the criticism of purchasing a car with cash and/or the critics of purchasing a car specifically for UberX that I am questioning. How much do I have to clear after fees for some to admit having no car payment increases probability of success with this business venture?


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## elelegido (Sep 24, 2014)

negeorgia said:


> So, how much money after fees do I have to bring in for some people to stop telling me it is a bad idea to purchase a car just for UberX and with cash?


For an even 20 I won't say it once.


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## Fuzzyelvis (Dec 7, 2014)

negeorgia said:


> Profitability of the market is a seperate issue from my business model of not financing a car or purchasing a car specifically for UberX. It is the criticism of purchasing a car with cash and/or the critics of purchasing a car specifically for UberX that I am questioning. How much do I have to clear after fees for some to admit having no car payment increases probability of success with this business venture?


I didn't buy a car for uber. I already had it. But I do have payments. However the interest rate is so low that paying cash would have made no sense. Part of the calculation should be the post of the money--interest rate. Just because you CAN pay cash doesn't mean you should.


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## negeorgia (Feb 1, 2015)

Disgusted Driver said:


> Unfortunately there is insufficient information to form a good opinion (I have my suspicions however which I will share).
> 
> All I can tell is that you drove 27K miles and you got a good deal on the car when you purchased it.
> 
> ...


Actual car usage is $2000.00; paid $10,000 now worth $8,000. Gas expence is accurate. 1 set of brake pads (my labor) and oil changes. Will need tires by December. I have driven more miles than expected and less surge than expected, however the setting of my own schedule and meeting the customer base (I am a lifelong Bulldog fan) and the simplistic process of what the task is actually about has made it a very tolerable activity. I am now curious as to how much after fees this venture will bring in.


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## negeorgia (Feb 1, 2015)

Fuzzyelvis said:


> I didn't buy a car for uber. I already had it. But I do have payments. However the interest rate is so low that paying cash would have made no sense. Part of the calculation should be the post of the money--interest rate. Just because you CAN pay cash doesn't mean you should.


Should I pay cash for the gas expense of UberX? The same logic that tells me yes, also tells me yes to not having a car payment on my UberX car.


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## elelegido (Sep 24, 2014)

If the choice is simply between paying $10k in cash for a car and financing $10k for the same car, then it all depends on the interest rate. Any rate below the current rate of inflation, finance it. Any rate above it, pay cash if possible.

But if you finance, you may have to insure it to the lender's requirements.

All of the other expenses will be the same no matter which you choose - depreciation, consumables, maintenance, repairs.

It gets more complicated if you have other debts. If you owed $x thousand on credit cards at a high interest rate for example, it would make no sense to pay cash for a car if you could finance it for a lower percentage rate than you pay on the credit cards.

It all depends


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## negeorgia (Feb 1, 2015)

Thanks to getting our butt in gear and paying off all consumer debt the last 4.5 years, our only debt is the house and going forward Romans 13:8-10; is the plumb-line.


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## Fuzzyelvis (Dec 7, 2014)

elelegido said:


> If the choice is simply between paying $10k in cash for a car and financing $10k for the same car, then it all depends on the interest rate. Any rate below the current rate of inflation, finance it. Any rate above it, pay cash if possible.
> 
> But if you finance, you may have to insure it to the lender's requirements.
> 
> ...


 That was pretty much my point. Right now my car payment interest rate is lower than the one on my house. If I have extra money I'd rather pay off my house then my car.


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## negeorgia (Feb 1, 2015)

Fuzzyelvis said:


> That was pretty much my point. Right now my car payment interest rate is lower than the one on my house. If I have extra money I'd rather pay off my house then my car.


Without a car payment, you would have extra money to pay off your home early. However, emergency funds should be #1 priority anyway. Small emergency fund before consumer debt repayment plan. Large emergency fund before investing or paying off a home early. Emergency fund for this type of business for car repair or replacement. Start where you are. Not everyone lives paycheck to paycheck. How can someone's brain know how to have $10,000 in savings until it learns how to have $1000.00 in savings?


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## renbutler (Jul 25, 2015)

negeorgia said:


> Profitability of the market is a seperate issue from my business model of not financing a car or purchasing a car specifically for UberX. It is the criticism of purchasing a car with cash and/or the critics of purchasing a car specifically for UberX that I am questioning. How much do I have to clear after fees for some to admit having no car payment increases probability of success with this business venture?


I won't vouch for purchasing a car to drive for UberX.

But I 100% support NEVER having a car payment. Good for you not throwing thousands of dollars down a depreciating rat hole. And that goes for everybody, certainly not just Uber drivers.

Even if the interest rate is low, it does you no good unless you are INVESTING the money you "save" by not paying cash for the vehicle. And by "investing," I mean buying stocks and holding them for multiple years.


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## renbutler (Jul 25, 2015)

negeorgia said:


> Without a car payment, you would have extra money to pay off your home early. However, emergency funds should be #1 priority anyway. Small emergency fund before consumer debt repayment plan. Large emergency fund before investing or paying off a home early. Emergency fund for this type of business for car repair or replacement. Start where you are. Not everyone lives paycheck to paycheck. How can someone's brain know how to have $10,000 in savings until it learns how to have $1000.00 in savings?


You've been listening to Dave Ramsey? 

You are on a stable path, my friend.


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## TwoFiddyMile (Mar 13, 2015)

negeorgia said:


> So, how much money after fees do I have to bring in for some people to stop telling me it is a bad idea to purchase a car just for UberX and with cash? After 12.5 months, I am at $21,000; we paid $10,000 cash for the car and it has gone from 38,000 miles to 65,000 miles (not all business miles, but most are). I would not take $7,000 for it, but I would take $8,000. It is a 2012 Chrysler 200 with 65,000 miles.


10 grand one time payout.
That would shut me up, I'll sign a 2 year agreement.
I'll even shill.
"Uber in your lien free car! It's good!".


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## renbutler (Jul 25, 2015)

sa62039 said:


> Mathematically, payments absolutely make financial sense assuming that the interest rate is below inflation (which, admittedly, has slowed in the past 18 months). If, in 2011 for instance, you could have purchased a car with an interest rate below something like 3.5%, it would have actually been 'cheaper' to finance it rather than pay cash.


Except that you don't know what inflation is going to be over the course of the 3-5 years of financing.


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## negeorgia (Feb 1, 2015)

To get lower rates on cars, credit score is a factor. When credit score is irrelevant (meaning processing many other factors), purchasing the lowest cost car to get the job done (well) and with profits is were I put my energy. Some would advise me to take out a loan on my Chrysler today? To increase my savings? Because interest rates are low? Borrow on my car and invest the amount of the loan? What if at just the point that my income dips, the value of the investment is down and I can't make the car payment? No thanks, when my income is down (as it was during the Summer); my mailbox stayed void of car note bills. Breathing room... I suggest giving it a try.


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## Luberon (Nov 24, 2014)

negeorgia said:


> So, how much money after fees do I have to bring in for some people to stop telling me it is a bad idea to purchase a car just for UberX and with cash? After 12.5 months, I am at $21,000; we paid $10,000 cash for the car and it has gone from 38,000 miles to 65,000 miles (not all business miles, but most are). I would not take $7,000 for it, but I would take $8,000. It is a 2012 Chrysler 200 with 65,000 miles.


Your biggest problem is asking what will make criitics happy....NOTHING. That is the point, nobody is gonna live your life but you. Take in all the different arguments and views and see how it best fits your life situation.


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## elelegido (Sep 24, 2014)

negeorgia said:


> To get lower rates on cars, credit score is a factor. When credit score is irrelevant (meaning processing many other factors), purchasing the lowest cost car to get the job done (well) and with profits is were I put my energy. Some would advise me to take out a loan on my Chrysler today? To increase my savings? Because interest rates are low? Borrow on my car and invest the amount of the loan? What if at just the point that my income dips, the value of the investment is down and I can't make the car payment? No thanks, when my income is down (as it was during the Summer); my mailbox stayed void of car note bills. Breathing room... I suggest giving it a try.


It all depends on your attitude to risk. When the bank stocks (along with all the others, but especially banks) crashed in 2008 I was sure the market had overreacted. I tried to convince my wife to let me borrow $15k to buy selected bank stocks. She refused. If I had done that, I would have made $50 grand within a few months when the stocks rebounded, even after paying the loan back.

Had I been wrong and lost any of the $15 grand loan, though, I would have been nagged until the end of time - disobedience on my part was therefore too high a risk/reward ratio.


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## negeorgia (Feb 1, 2015)

renbutler said:


> You've been listening to Dave Ramsey?
> 
> You are on a stable path, my friend.


Yes, and once I had a personal encounter with the brilliance of baby step 1, I was hooked. We finished baby step 2 the first week of August.


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## negeorgia (Feb 1, 2015)

Luberon said:


> Your biggest problem is asking what will make criitics happy....NOTHING. That is the point, nobody is gonna live your life but you. Take in all the different arguments and views and see how it best fits your life situation.


Not my biggest problem (that is, oh me of little faith). I hear you, self-control is the number one factor in destiny and those determined to learn cannot be stopped by anyone. My question is at what $ level after fees, did I 'win' by doing UberX debt-free with a $10,000 car instead of car debt on a $15,000 and up car? I don't finance gas expenses. I don't finance car expenses or repairs.


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## negeorgia (Feb 1, 2015)

elelegido said:


> It all depends on your attitude to risk. When the bank stocks (along with all the others, but especially banks) crashed in 2008 I was sure the market had overreacted. I tried to convince my wife to let me borrow $15k to buy selected bank stocks. She refused. If I had done that, I would have made $50 grand within a few months when the stocks rebounded, even after paying the loan back.
> 
> Had I been wrong and lost any of the $15 grand loan, though, I would have been nagged until the end of time - disobedience on my part was therefore too high a risk/reward ratio.


My financial advisor teaches me to not invest until I have no consumer debt and have a 3-6 month cash emergency fund. I have discovered (after decades of painful research) that emergency fund lifestyle beats paycheck to paycheck lifestyle.


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## Luberon (Nov 24, 2014)

negeorgia said:


> ...by doing UberX debt-free with a $10,000 car instead of car debt on a $15,000 and up car?


I feel you've won already by choosing a cheaper car. Just out of curiosity, did you take a less expensive auto policy because you own your car? If yes, how much do you estimate your saving are per month/year?


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## elelegido (Sep 24, 2014)

negeorgia said:


> Not my biggest problem (that is, oh me of little faith). I hear you, self-control is the number one factor in destiny and those determined to learn cannot be stopped by anyone. My question is at what $ level after fees, did I 'win' by doing UberX debt-free with a $10,000 car instead of car debt on a $15,000 and up car? I don't finance gas expenses. I don't finance car expenses or repairs.


Too general a question. It depends on the $15k plus car - what is it, how many miles does it have, what's its expected depreciation, what do you expect to spend on repairing and maintaining it, what's it's mpg.

But the cost of financing vs cash is separate from the above and is easily seen for any month or period by looking at the loan's amortization schedule.


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## Luberon (Nov 24, 2014)

elelegido said:


> Too general a question. It depends on the $15k plus car - what is it, how many miles does it have, what's its expected depreciation, what do you expect to spend on repairing and maintaining it, what's it's mpg.
> 
> But the cost of financing vs cash is separate from the above and is easily seen for any month or period by looking at the loan's amortization schedule.


All things being equal (we know they never are...) a cheaper car is the better option for X.


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## negeorgia (Feb 1, 2015)

elelegido said:


> Too general a question. It depends on the $15k plus car - what is it, how many miles does it have, what's its expected depreciation, what do you expect to spend on repairing and maintaining it, what's it's mpg.
> 
> But the cost of financing vs cash is separate from the above and is easily seen for any month or period by looking at the loan's amortization schedule.


Another factor though is monthly payment verses no monthly payment. Inconsistent income is easier to negotiate with only a house payment (or rent), food, insurance and utilities.


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## Luberon (Nov 24, 2014)

negeorgia said:


> My financial advisor teaches me not invest until I have no consumer debt and have 3-6 cash emergency fund. I have discovered that emergency fund lifestyle beats paycheck to paycheck lifestyle.


You say to-mah-toes.... any strategy when consistently applied will work out in the long run. The key is consistency.


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## negeorgia (Feb 1, 2015)

Luberon said:


> I feel you've won already by choosing a cheaper car. Just out of curiosity, did you take a less expensive auto policy because you own your car? If yes, how much do you estimate your saving are per month/year?


I do have full coverage and due to our age, driving record (no tickets for my wife or I this century) the rates are $688 per year (with $1000 deductible) for my UberX car. When the car is worth less than $5000.00 we may drop it down. Insurance on my 1994 S-10 is (liability only) $244 per year by comparison.


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## negeorgia (Feb 1, 2015)

Luberon said:


> You say to-mah-toes.... any strategy when consistently applied will work out in the long run. The key is consistency.


Any good strategy, yes. Consistency in a defective strategy, not so much.


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## BizyMom (Sep 1, 2015)

negeorgia said:


> Profitability of the market is a seperate issue from my business model of not financing a car or purchasing a car specifically for UberX. It is the criticism of purchasing a car with cash and/or the critics of purchasing a car specifically for UberX that I am questioning. How much do I have to clear after fees for some to admit having no car payment increases probability of success with this business venture?


I have to respectfully agree to disagree with the advice many have given you here, but only because of my ow money philosophy and opinion. In the end, what is profitable to you is what is profitable to you! Only you can really decide if any given job/business/consumer item is 'worth it'.

Having said that, my opinion is this: Never finance if you can pay cash. I've learned many difficult life-lessons and was fortunate enough to have someone gently suggest the Dave Ramsey 'Total Money Makeover' book several years ago. It absolutely changed how we deal with money in my family and how we view debt of any kind. We are on target to have all consumer debt paid off by January, cars paid off by June. Uber is my 'Dave Job' in addition to my 'real job' to help build our 'debt snowball'.

The question Dave poses when people say things about interest rates lower than inflation or lower than you could make in Mutual funds is this: Would you go to the bank to borrow money against your home/car to put into the stock market? The logical answer to this is of course, NO. You wouldn't risk personal security to ride the market (unless you were really, really REALLY good at day-trading or other risky ventures, and even then, most of those guys, the smart ones, never play with money that protects their family).

He also reminds folks that a car is not an investment, it is a tool. It depreciates over time no matter how well you take care of it. The best way to come out 'ahead' on that depreciation game is to buy a car that has had most of its depreciation happen before you get it! Since this advice, we've only ever bought cars that are OLDER. My Uber car is a 2007 Saturn that had 93,000 miles on it when we bought it last year. Leather seats, not a mark on it outside, a little 'kid-coolaid spill stain' on the carpet floor in the back under the floor mats and runs great. Maintenance is cheap and gas mileage is great - almost 30 in-town and roughly 35 highway which are the majority of our commuting miles. We were not able to pay cash for it. We financed $8K. It's a fabulous car and it does not cost us .575 cents/mile to drive or anywhere near. That credit on taxes will completely cover our 'operating expense' for the thing and a little more, so however much or little I make driving Uber is profit.

In my little town with very little demand, it is definitely less than minimum wage having said all that. The hours I drive are only the 'dead' hours I normally am just sitting in a dance studio, reading a book, waiting for my kid to finish class so we can make the 40 minute commute home. Last night, I had only four riders though I had the app on for 3 hours. The rides all came in a roughly 90-minute cluster, but even then, my Uber earnings are only $15 and no tips. *shrug* For me, because it's costing me literally NOTHING to do it and the time I'm doing it is time that was utterly non-productive otherwise, fifteen bucks is worth it.

Every person and situation is different. I think we should each evaluate our situation on a case-by-case basis, because if you are miserable AND not making enough money to do what you need this job to do, then clearly this is not the right fit and you should be looking for something else.

That is the one thing I'm trying to figure out as I read and learn from all the more veteran drivers and bigger-city drivers. I try to read between the lines, behind the anger and the negativity and the just 'blowing off steam' venting in a community that is clearly a safe-place for drivers to do so. No matter how badly people seem to really, really, REALLY hate Uber, they are still driving. They must be getting something positive out of it.

Do what is best for you. And I highly recommend Dave Ramsey's 'Total Money Makeover' book for anyone who is ready to stop living paycheck to paycheck, scrimping for every dime and trying to stay on top of a mountain of bills and debt. It's literally the best thing that ever happened to us.


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## negeorgia (Feb 1, 2015)

Agreed... Baby step 1 was a game-changer. We have just completed Baby step 2 and my ubering is filling the bank for baby step 3. My wife has transitioned from FT to PT thanks to Dave's plan.


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## elelegido (Sep 24, 2014)

BizyMom said:


> Do what is best for you.


Exactly - everyone's attitude towards risk is different - there is no right or wrong answer.


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## negeorgia (Feb 1, 2015)

There are better and worse answers though. Some finance their gas and car to UberX and some pay cash for both. I know small % at each end and the vast majority finance their car but not their gas.


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## Disgusted Driver (Jan 9, 2015)

negeorgia said:


> There are better and worse answers though. Some finance their gas and car to UberX and some pay cash for both. I know small % at each end and the vast majority finance their car but not their gas.


First off, as I said originally, sounds like you are happy with where you are and what you are doing and have some money to show for it so that makes you a success.

You seem however to have a second agenda or point you are pushing, about debt or not, financing etc.... and here's my thoughts on this. 
Yes, most Americans manage their money very poorly and use all sorts of destructive mechanisms like payday loans, high interest rate financing, rent to own, etc... to get instant gratification when a little patience would go a long way and save tons of money. With that said, there is a certain someone I know who shall remain nameless that is 3/4 of a million dollars in debt and very happy about it. Debt is not a bad thing in and of itself, if you have self control it can be an excellent tool to make more money. Using the banks money to invest in 6 properties and make an extra 30 to 50K a year with a fairly low risk profile is a valid and sensible way to use debt. So lets take a slightly more nuanced view of this and say while it may be a poor choice to finance your day to day living expenses, taking on debt to use for working capital for investments is not a poor choice, in fact it's how just about how every high net worth person got there.


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## Oscar Levant (Aug 15, 2014)

elelegido said:


> If the choice is simply between paying $10k in cash for a car and financing $10k for the same car, then it all depends on the interest rate. Any rate below the current rate of inflation, finance it. Any rate above it, pay cash if possible.
> 
> But if you finance, you may have to insure it to the lender's requirements.
> 
> ...


Cost per mile is better when paying cash for car, low miles, a couple years old. 
If you are making payments, pay for two months every time you make a payment, you'll save a lot in interest and get it paid quickly.


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## Michael - Cleveland (Jan 1, 2015)

negeorgia said:


> Actual car usage is $2000.00; paid $10,000 now worth $8,000. Gas expence is accurate. 1 set of brake pads (my labor) and oil changes. Will need tires by December. I have driven more miles than expected and less surge than expected, however the setting of my own schedule and meeting the customer base (I am a lifelong Bulldog fan) and the simplistic process of what the task is actually about has made it a very tolerable activity. I am now curious as to how much after fees this venture will bring in.


I'm with you on this - and I do the same thing.
But I also advise people NOT to buy a car only for Uber - and NOT to finance a car for Uber use.
The problem, is that too many drivers don't understand what you (and I) do: 
You purchase a car for cash below its retail value, maintain it well and drive it as long as possible to get the most value out of it.
That is not what many, many drivers do. They 'lease' a new car or buy a used car for too much and then destroy the value of what is already a depreciating asset. You have to be a 'car' person to be able to do what you (and I) do... know not only the value of a car, but its reliability and total cost of ownership.

The first car I put on Uber was my daily driver Mercedes that I paid $9,000 for. It qualifies for SELECT so 20% of my earnings came from fares that are at over $2.25/mi. I've put around 30,000 miles on that car over around 7.5 months of Uber driving, generating over $21,000 in earnings. The car is still easily worth over $7,000.

I didn't want to put any more unnecessary miles on that car so I just bought a 10 year old Kia Amanti - a large luxury car, in gorgeous condition with low miles - for $2,000. I know I can put 200,000 miles on this car with just normal maintenance and repairs for the miles. It may be worthless by the time I'm done with it, but it will have more than paid for itself many times over.

The other thing I like about NOT financing or leasing is that you don't have to purchase collision or comprehensive insurance - which cuts my insurance bill to 1/3 of what the insurance would be on a newer financed/leased car which requires both collision & comp coverage. (I pay just $200/yr for the Amanti).


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## Michael - Cleveland (Jan 1, 2015)

renbutler said:


> But I 100% support NEVER having a car payment. Good for you not throwing thousands of dollars down a depreciating rat hole. And that goes for everybody, certainly not just Uber drivers.


I agree. 
The adage is "finance appreciating assets, pay cash for depreciating assets".


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## Michael - Cleveland (Jan 1, 2015)

Fuzzyelvis said:


> I didn't buy a car for uber. I already had it. But I do have payments. However the interest rate is so low that paying cash would have made no sense. Part of the calculation should be the post of the money--interest rate. Just because you CAN pay cash doesn't mean you should.


Any 'savings' you think you are realizing on interest rates (ie: the cost of money) 
are more than eaten up by doubling your required insurance coverage.


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## Fuzzyelvis (Dec 7, 2014)

Michael - Cleveland said:


> Any 'savings' you think you are realizing on interest rates (ie: the cost of money)
> are more than eaten up by doubling your required insurance coverage.


Explain how I'm doubling my required insurance? You mean by having full coverage instead of just liability? I have my house and 3 vehicles (for 28 years wiylth the same company) so taking collision/comp off my car would not save very much due to all the breaks I get. I would have to drive a VERY cheap car indeed to feel comfortable not having it so for me that's not something I would save money on anyway.

Or did you mean something else?

Besides my only point was that if you finance any car the cost of the money is also an expense. Had I bought the same car but not financed it my insurance would be the same.


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## Michael - Cleveland (Jan 1, 2015)

Fuzzyelvis said:


> Explain how I'm doubling my required insurance? You mean by having full coverage instead of just liability? I have my house and 3 vehicles (for 28 years wiylth the same company) so taking collision/comp off my car would not save very much due to all the breaks I get. I would have to drive a VERY cheap car indeed to feel comfortable not having it so for me that's not something I would save money on anyway.
> 
> Or did you mean something else?
> .


Nope - that's what I meant.
Just for 'giggles, you might ask your agent what the difference would be for your vehicle if you carried liability only (I realize that may not be an option you're comfortable with - but it's still something you might want to know).


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## Michael - Cleveland (Jan 1, 2015)

Luberon said:


> You say to-mah-toes.... any strategy when consistently applied will work out in the long run. The key is consistency.


well, I don't know about that.
A bad strategy consistently applied will still achieve bad results.


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## Dontmakemepullauonyou (Oct 13, 2015)

negeorgia said:


> So, how much money after fees do I have to bring in for some people to stop telling me it is a bad idea to purchase a car just for UberX and with cash? After 12.5 months, I am at $21,000; we paid $10,000 cash for the car and it has gone from 38,000 miles to 65,000 miles (not all business miles, but most are). I would not take $7,000 for it, but I would take $8,000. It is a 2012 Chrysler 200 with 65,000 miles.


I bought a brand new 2013 Toyota Camry for $20,000 cash before I even heard about uber or these services. I used it for my own company as a company car and put near 50k miles on it in 2 years.

Now so far using it doing uber, I've put 20k miles on it in only 4 months doing uber.

Before I started uber I bought new set of good Pirelli LRR tires rated for 70k miles and complete new brakes which warrenty covered half the bill.

I don't care about the value of this car as I paid cash for it and I will sell it when it hits 100k miles maybe 120k miles and I will only lose half the value I paid 2 years ago for it so it's not too bad.


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## Fuzzyelvis (Dec 7, 2014)

Michael - Cleveland said:


> Nope - that's what I meant.
> Just for 'giggles, you might ask your agent what the difference would be for your vehicle if you carried liability only (I realize that may not be an option you're comfortable with - but it's still something you might want to know).


I have a pretty good idea because I went through a lot of options when I bought a truck for my mother to drive. I own it and she lives in another county so I went to see what liability vs full coverage would be and if there were any issues with her not living at the same address. It was a bit of a toss up as to whether to get full coverage at the time.

Anyway it was only about $25 a month difference. Even if it were $40 a month driving around Houston with the drivers here the peace of mind is worth that much to me.

2 years ago I was run off the road by a (presumably) drunk driver. My collision paid as he took off (I ended up running over a curb and hitting a pole). My insurance did not go up by the way but had I not had full coverage the cost would have been on me. My car was totalled ($13,600 plus medical bills). I didn't have a dash cam at the time unfortunately. So I don't assume that just because I don't cause an accident it will always go on the other driver.

I've never driven anywhere else but out of towners are always telling me Houston drivers are the worst they've ever seen.

Oh and I don't have the ridiculous state minimum car insurance either. Plus umbrella policy with the house.


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## Michael - Cleveland (Jan 1, 2015)

Fuzzyelvis said:


> I have a pretty good idea because I went through a lot of options when I bought a truck for my mother to drive. I own it and she lives in another county so I went to see what liability vs full coverage would be and if there were any issues with her not living at the same address. It was a bit of a toss up as to whether to get full coverage at the time.
> 
> Anyway it was only about $25 a month difference. Even if it were $40 a month driving around Houston with the drivers here the peace of mind is worth that much to me.
> 
> ...


Absolutely understood... driving with only liability has to make sense based on your own situation.

For me, I don't need to pay the additional $300/year (that's what your $25/mo is) for insurance that requires me me to pay a $1,000 deductible.

I guess most people have a lower deductible, but since I haven't filed a claim in over 40 years, I've saved enough over that time that it's cheaper for me to just pay for any smaller repairs out-of pocket. Any large claim, because of the low acquisition cost of my cars, I'd just sell them as-is and still come out ahead. Again - that's just MY specific circumstance... I'd would absolutely do full coverage on a higher value vehicle.

Of course I would have to do full coverage if I financed or leased...
which was the point of this thread, and why I pay cash for vehicles
and buy them at as close to or lower than the trade-in value as possible.


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