Ride-Sharing

Everything Uber And Lyft Drivers Need To Know About Leasing

by Alex Glenn, VP

For a growing number of people, leasing is the preferred way to drive a new vehicle every couple of years at a fraction of the traditional purchase cost. Because of this fact — along with several other attractive attributes — vehicle leasing has continued to grow over the last decade.

Another trend is the increasing popularity of earning extra money through ridesharing services like Uber and Lyft. However, is vehicle leasing and driving for Uber and Lyft a match made in heaven or the perfect nightmare?

Although everyone’s driving habits are different, the experts at Carlease.com tackle a few misconceptions about leasing and driving for Uber or Lyft. Continue reading to learn everything Uber and Lyft drivers need to know about leasing.

Can I Use a Leased Vehicle for Uber or Lyft?

Image c/o WikimediaCommons.org

Absolutely! As long as the leased vehicle meets the requirements of the ridesharing company, you should be able to use the vehicle to earn extra money on the side. And it’s highly likely — if not certain — the leased vehicle will meet the standards of the ridesharing company.

This is because leased vehicles are equipped with the newest and most cutting-edge features. You can choose the features you want while skipping out on the features you don’t. However, it’s imperative for you to review the terms and conditions of your lease contract. Pay special attention to any special requirements involving auto lease insurance.

Some contracts do restrict the use of the leased vehicle from engaging in any business that relies solely on the operation of the vehicle to generate revenue. Most importantly, you should make sure to understand your mileage restrictions on the lease and work to stay within the limit. Contrary to popular belief, you can do both!

Can I Start a New Lease for Ridesharing?

Image c/o Flickr.com

As previously mentioned, you most certainly can! However, you should read the fine print on your lease agreement to make sure you’re not in violation of any terms. Many people initiate a vehicle lease for the specific use of operating a ridesharing business through Uber or Lyft.

To make leasing even more attractive, a growing number of auto manufacturers are trying new lease services specifically for ridesharing. For example, BMW and Mini now offer a new “Car & Ride Sharing Lease for BMW” that allows you to either rent your vehicle out to others or drive for a ride-sharing service like Lyft or Uber.

BMW pitches this new service as a component of its ongoing push into mobility services and as an acknowledgment of the changing times. Like others, BMW is fully aware of the potential decline in vehicle purchases and leases if ridesharing services continue to increase.

They want to make leasing a new BMW or Mini more flexible and attractive to those who want to do more with their own car. At the same time, Toyota Finance Services has recently solicited a service designed to attract more ridesharing drivers to lease Toyota vehicles. You can find more information on all new ridesharing lease programs through Carlease.com.

What Are the Benefits of Using a Leased Vehicle for Lyft or Uber?

Image c/o Flickr.com

Other key benefits of using a leased vehicle for Lyft or Uber driving include:

  • Newer vehicles will deliver the best and most competitive MPGs
  • New vehicles come with the most advanced safety equipment, which makes them safer.
  • By leasing a vehicle, you can keep the miles off your personal vehicle.
  • Outside of regular vehicle maintenance, most repairs will be covered under the manufacturer’s warranty.
  • If you’re unsure about a certain vehicle, leasing it for a few years is a great way to decide if you want to purchase the vehicle.
  • Low monthly payments and monthly lease special offers mean you can drive a new luxury vehicle for a fraction of the cost of purchasing the same vehicle.

What’s Up with the Leased Vehicle Mileage Restrictions?

Zero vs Low Mileage Cars

Image c/o Canva.com

Now we get to the million dollar question — about leased vehicle mileage. As you probably already know, most leased vehicles will allow you to drive a certain number of miles each year.

For instance, if your lease stipulates you can drive 15,000 miles per year and you end up driving 18,000 miles because of your ridesharing business, you may be responsible for an excess mileage charge at the end of the lease.

Because of this, it’s imperative for you to choose the right mileage allowance. It’s also important for you to do your own math and homework when it comes to the lease. You should carefully consider all facets of the lease while balancing your own ambitions with any mileage allowance options. If you need help doing so, the experts at Carlease.com bring decades of experience helping business owners make the best decision.  

What Are the Alternatives to Leasing a Vehicle from a Dealership?

Leased Vehicle for Uber or Lyft

Do you have a thing about leasing from a dealership? Are you not into high-pressure situations? Well, there are several other options for you to lease a vehicle. One of the best and most effective ways to lease a vehicle for your ridesharing business is through Carlease.com.

From the comfort of your home, you can browse all vehicles from all manufacturers to find the best lease vehicle for your needs. Best of all, you can receive free quotes, compare different mileage allowances, and lease terms toward making the best decision.

 

Alex Glenn, VP

Hello and thank you for reading. I am the VP of Marketing here at carlease.com, so please let me know what you think!