Should You Buy a Car for Rideshare Driving?

One of the easiest ways to make money in 2019 is to join the gig economy. However, you have to offer something. If you have a car and a clean background, you can give people rides. There are some people who are attempting to make a full-time living as a rideshare driver.

If you’re thinking about doing this, you obviously need to get a car. But is it a good idea to get a car specifically to become a rideshare driver? This post may help you decide.

What Are Your Needs As A Rideshare Driver?

Before you do anything, figure out what your needs are. If you’re going to be a full-time rideshare driver transporting passengers, you need a better car than if you’re solely going to sign up for the delivery driver apps. 

Also, think about how many people you want to transport. Bigger cars are more expensive but you can transport larger groups of people, earning more money. Luxury  or classical vehicles can also earn more as people enjoy moving around in style. 

When you buy a car specifically to drive professionally, you want to make sure that you’re getting the right deal.

Long-Term Goals When You're 'Ridesharing'

If you only want to be a rideshare driver for a few months, it doesn’t make sense sign up for 68-month car loan. However, it could be a reasonable financial option if you think that you want to drive for a while.

If you also want a car to satisfy your personal needs, that should be factored into your decision.

What are the Costs of Rideshares?

Obviously, the cost of your car is important. If you have poor credit and don’t have a large down payment, your only option may be to get a car with a very high interest rate. Consider, are you willing to make these payments just to have a car? If your credit is very poor, you may end up paying a 23 percent or higher interest rate.

When you’re thinking about this, you should be realistic about how much you expect to make from your vehicle. Speak to other rideshare drivers in the area. They’re easy to find. Simply request a ride as a passenger.

How Does Insurance Work For Ridesharers?

No matter how good of a driver you are, you’re at risk of getting into an accident every time you get behind the wheel. If you’re going to be a rideshare driver, you may need to get special insurance. It’s better to pay more for appropriate insurance than to try to skate by on the minimum. Even if you think that your insurance company won’t be able to figure out that you’re a rideshare driver, you have to think about what you’re going to do if you get into an accident. The insurance that comes with the rideshare company may not be enough.

The best hit and run attorneys of Denver will tell you that: “A fender bender with a parked car is serious enough (up to 3 months jail), but the penalties are dramatically higher if there were injuries involved, and if the driver was driving under the influence or a habitual traffic offender. Preventing hit and run is a high profile priority…”

What Are My Other Options When Buying A Car?

You may have other options to get a car. Depending on your financial situation, it may make more sense to wait until you can pay cash for a car. Then you won’t have to worry about financing. However, this isn’t feasible for many people.

You might be able to rent a car as well. In some markets, rideshare companies allow people to rent cars to use for rideshare driving. The weekly or monthly car fees are deducted from the driver’s weekly earnings. This is often an expensive option, however, it has its benefits. You can apply for some of the programs even if you have bad credit or no credit. And there’s no long-term commitment. This can be a good or bad thing. You’re paying for a car that you don’t own and aren’t leasing.

Location Matters When You Ridesare! 

It only makes sense to buy a car to become a rideshare driver if you live in a busy market. Otherwise, you won’t get enough business to justify the purchase. Uber and Lyft are extremely popular so it shouldn’t be hard to find an area where they’re thriving.

If you want to make the most money, you should sign up for multiple driving apps. That way, you won’t be dependent on a single platform. Different apps are busy at different times. You can’t tell in advance which one is the best to make money with.