Everything Uber And Lyft Drivers Need To Know About Leasing
Katherine Evans - May 17, 2019
Published 26 March, 2018
Updated 17 May, 2019
For a growing number of people, leasing is the preferred way to get behind the wheel of a new vehicle every few years at a fraction of the traditional purchase price. Not only are newer makes and models equipped with the latest in technologies and safety features, but increased mpg efficiencies and manufacturer warranty coverage make leasing an extremely attractive offer. Because of these factors — along with several other positive attributes - vehicle leasing has continued to grow over the last decade with no signs of slowing down.
Another trend is the increasing popularity of earning money through ridesharing services like Uber and Lyft. Whether it's a full or part-time job, there are more ridesharing drivers on the road today than ever before; and many of them are turning to leasing solutions to find a car that will save them money and earn them 5-star ratings. This begs the question: Are vehicle leasing and ridesharing a match made in heaven, or the perfect nightmare?
Although everyone's driving habits are different, the experts at Carlease tackle a few common misconceptions about leasing and driving for companies like Uber or Lyft. Continue reading to learn everything rideshare drivers need to know about leasing.
Image c/o Flickr.com
"Can I use a leased vehicle for Uber or Lyft?"
Absolutely! As long as the leased vehicle meets the requirements of the ridesharing company, you'll be able to use the vehicle to start driving. As a prime example, Uber has a webpage dedicated to vehicle requirements on a city by city basis, check out the Chicago example.
It's highly likely — if not certain — that a new 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 attention to any special requirements involving auto lease insurance, and make sure you cover yourself properly. Check out our article on GAP and Umbrella insurance policies to see if they might be right for you.
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! Most lease mileage restrictions range from 10,000 to 15,000 miles, but there are certain open-ended lease options available to you as a consumer, and the leasing experts at Carlease can help you determine a lease plan that's right for you.
Image c/o Flickr.com
"What are the benefits of leasing for ridesharing?"
- Newer vehicles will deliver the best and most competitive MPGs (miles per gallon). With each new make and model on the market today, mpg efficiencies get better and better. And hybrid/fully electric vehicles are more common than ever.
- New vehicles come with the most advanced safety equipment, making them safer for you and your passengers should the unthinkable happen. Some of today's base models are equipped with more safety features than premium trims from five years ago.
- One of the biggest benefits of leasing a new vehicle is the manufacturer's warranty. Bumper to bumper warranties start at 3 year/36,000 miles and increase with the value of the car. When driving is your livelihood, maintenance costs are an eventuality. But lease a new car and you won't have to pay out of pocket for repairs that could cost you thousands on a used or personal vehicle.
- By leasing a vehicle, you can keep the miles off your personal 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 or one of lower quality. There's a reason why the number of leased luxury cars on the road is growing!
Image c/o Canva.com
"Earlier you mentioned mileage restrictions... what are they?"
Now we get to the million dollar question - what about leased vehicle mileage? As you probably already know, most leased vehicles will only allow you to drive a specified number of miles each year - referred to as your "mileage limit". It's your job to know what your limit is and to keep track of it so that you don't accidentally go over it, or you could end up paying at the end of your lease.
For instance, if your lease states that you can drive 15,000 miles per year but you end up driving 18,000 miles because of your ridesharing business, you are responsible for an excess mileage charge at the end of the lease. This charge can range anywhere from $0.15 - $0.25 per mile, with the average charge being $0.20. So, if you drove 3,000 miles over your mileage limit, you could owe $600 at the end of your 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 making these decisions, the leasing experts at Carlease bring decades of experience helping business owners make the right decisions. Our specialists are standing by ready to answer your questions.
"Great! I'd like to lease my next vehicle...how do I do that?"
While Uber and Lyft offer a platform for you to lease or rent a vehicle, this convenience comes at a cost. On the low end, Uber charges its drivers $130+ dollars per week to rent a vehicle for their ridesharing business. That's well over $500 a month for an older model vehicle that's been driven by an unknown number of people. And you are certainly able to lease a car from a dealership, but do you have the time and energy to spend all day at a dealership haggling over dollars and miles? I don't know about you, but I am NOT into high-pressure situations, playing the "waiting game", or spending my entire day stressing.
Thankfully, there is a great option available if you prefer the hassle-free lifestyle...our clients sure do!
Try Carlease. We are the easiest way to lease your next vehicle. From the comfort of your home, you can browse hundreds of different makes and models to find the vehicle that's right for your needs. Best of all, our leasing specialist will provide you with detailed and transparent quotes on vehicles and lease plans, helping you make the best decision for your business.
Let our experts help you find your next vehicle and get your rideshare business up and on the road! Visit Carlease.com or call (847) 714-1414 today.