Starting out as an Uber driver can be a profitable way to make some extra cash, but you’ll need the right car. Here are 5 options for renting a car for Uber.
With Lyft’s 2019 debut on Wall Street, they started off valued at $24 billion, more than many could have predicted. While Uber has yet to make their debut on the scene, the two ridesharing companies are in close competition for drivers and profits. If you’re thinking of renting a car for Uber driving, you could get your own little piece of the pie.
Here are five options for getting a car for rideshare driving.
1. Consider Skipping a Rental Altogether
While your first inclination might be to rent a car for your ridesharing career, it might not be the right move for you. You should skip renting altogether if you think you’re going to be using the car permanently. Purchasing a car is a major choice but renting one can be as much of a challenge, especially if you’re renting a new car at a high interest rate.
If you’re only going to be making around $15 per hour, you might want to get a used car that fits the bill for Uber and Lyft. If you want the best chance of buying a car on that pay, then a used vehicle from $5,000 to $15,000 is a better bet. If you have good credit and can get a 36-month loan, you can drive for about 20 hours each week and pay it off.
Every region has its own standards for what’s required. You can’t just pick any car. If you were thinking about getting a ridesharing vehicle and a separate personal vehicle, you might want to combine the two.
Making a big financial decision for these ridesharing companies isn’t the right decision. Make it based on what you can realistically afford. Remember that you’ll also have to do maintenance on this vehicle.
2. Rent from Lyft
Lyft has its own program for providing rental cars to drivers. Through their partnership with GM and Hertz, they offer unlimited mileage for a surprisingly low fee. The average rate is around $180 a week but you can use it for personal reasons.
You can also earn rewards as part of your rental to cover some of the costs. The number of rides that you accept factors in as well as having a high acceptance rate. Where you used to have to give nearly 75 rides just to qualify for this program, that’s changed.
Getting that many rides could be a challenge for even the savviest driver, so you’ll be thankful that the figures have changed. You don’t have to run a rideshare full time if you want to drive a nice car without committing to buying one.
3. Rent from Hertz
Hertz has their own special deal they run with Uber to help drivers get started. At a little more than $200 a week, you can get a midsized sedan for a week at a time or longer. If you give 24-hour advance notice of your reservation, you’re sure to get a great vehicle from the lot.
This is another situation where you can drive the car for personal use. There’s no mileage cap and they don’t track whether you’re using it only for ridesharing or not. If you’re savvy with this program, you can make a fair amount of money.
You don’t have to worry about insurance or maintenance while you’re renting with this program. That’s another way that you can cut back every month.
4. Rideshare Rental Services Are Flourishing
If you’re looking for alternatives to working with these companies, there are now options from companies who run rentals services exclusively for rideshare drivers.
For drivers looking for a friendly peer-to-peer rental option, HyreCare is a great choice that helps connect drivers with owners. You can rent out someone’s car for as low as $25 a day to drive and make some money. You’ll have to pay a refundable deposit but it’s not too much.
If you want to get one of those classy Chevrolet vehicles you see Uber and Lyft drivers in, check out Maven Gig. They work with GM to share cars at around $189 per week. If you live in LA, Phoenix, San Francisco, D.C., or San Diego, you could be eligible for this program.
These rental services don’t care who you’re going to be driving for. You could even be using the vehicle for one of the many delivery services that constantly need more drivers. Since there’s an increasing need for drivers, this allows everyone to make money and get access to the cars they need.
5. Subprime Leasing
While Uber Xchange used to be the number one way for people to get a car to drive with the company, the program ended in 2017. Uber found out that it was losing about $9,000 per vehicle despite the fact that it offered more drivers access than would have been possible otherwise. They mostly made this investment to spread the network of Uber rather than to make money from the leases.
Thankfully, there are other lenders who are using a similar model to Uber’s old program, without the losses and offering subprime lending. This helps people who are recent immigrants, in between jobs, or who are just starting their careers to drive for ridesharing services.
The number of loans for Uber drivers is growing from a variety of financial service providers.
Renting a Car For Uber Driving is Within Reach
While renting a car for Uber driving isn’t going to be the end of your main career, it can be a useful start or a way to supplement your main income. This extra income could start a savings account, a travel fund, or help you pay your way through school.
If you want some tips for maintaining your car to save a little extra money, check out our latest guide.
