How Can I Get a Car Through Uber

If you'd like to drive for Lyft or Uber but don't have a car, there are a lot of new options to get you rolling. Rental agencies, finance companies and even carmakers are jumping into the game to supply cars to the growing number of people interested in rideshare driving.

Which option best matches your budget and lifestyle? Here are five to consider.

1. Buying a car

A car is no small purchase, so consider how much you can expect to earn. Rideshare drivers average $14 to $16 an hour, according to Glassdoor.com.

A used vehicle in the $5,000 to $15,000 range gives you the best chance of paying for the car with your rideshare earnings. Vehicle standards are regional, so check Uber's and Lyft's requirements before you buy.

Models like the 2013 Toyota Corolla or the 2014 Volkswagen Jetta will keep riders happy and cost between $10,000 and $12,000.

Don't make a huge financial decision solely for Uber or Lyft. But if you need a car anyway, buying could be the best option. You avoid weekly rental payments or an expensive lease, which can cost more than payments on a used car. Just factor in the expense of vehicle depreciation and rideshare insurance.

2. Express Drive

Lyft has partnered with General Motors to provide rental cars via the Express Drive Program, with weekly rates between $135 and $250. Drivers are eligible for $0 weekly rates when they hit 75 rides a week.

You'll need to drive most of the week to bank that many rides, so it's best for people who are looking to test the full-time driver lifestyle but don't want to commit to buying a car.

3. Hertz and Enterprise

Hertz has partnered with Lyft and Uber to provide rideshare rentals. Lyft's deal starts at $165 for weekly rentals of compact sedans. After a certain number of rides per week, which varies regionally, drivers can earn a Power Driver Bonus to cover the rental cost.

Uber's deal with Hertz is similar to Lyft Express Drive, but the two programs are offered in different cities. The Uber program has a $180-per-week base rate, which drops to zero after 75 rides a week.

Enterprise's rentals, specifically for Uber, are a pricier $215 a week.

Renting is typically more expensive than buying a car and making monthly payments, but if you're a high-volume driver it basically can become free. Plus, if you don't like rideshare driving, you can quit after a short trial period.

4. Uber Xchange

Uber Xchange offers short-term car leases from partnering car dealerships. Drivers pay a $250 deposit to start and make weekly payments over three years. Xchange leases to people with poor credit, but monthly totals and interest rates are much higher than with conventional financing.

For example, a 2013 Toyota Camry L Base leased through Uber Xchange may cost 156 weekly payments of $130, or $520 monthly. Comparatively, leasing a 2017 Camry through a Toyota dealer is only $199 a month — though you need a good credit score.

Xchange saves drivers money by including maintenance and insurance, but this means full-time drivers are dependent on Uber servicing their cars quickly.

"My car was in a shop over a month while a claim was investigated, and the people in the Xchange office had no willingness to work with me on payments since I was generating no income," says James Taylor, an Uber driver from Los Angeles.

However, Xchange offers unlimited mileage, whereas traditional leases typically start charging extra after 12,000 miles. It also allows members to return the car and back out after 30 days – minus the $250 deposit.

Consider Xchange only if you're driving 40-plus hours per week, want a car for personal use and can't get other financing because of your credit. Remember, some lenders may be able to help you buy a used car at a better price.

5. Hyrecar

Hyrecar is a peer-to-peer rental service specifically for ridesharing. Uber and Lyft drivers connect with car owners to use their vehicles at varying daily, weekly and monthly rates. There are no contracts or sign-up fees, and daily rates are as low as $35. Weekly rates float around $200 to $300.

Hyrecar is great if you want to try rideshare driving for the day and you don't want to deal with paperwork or a security deposit. You can sign up on Hyrecar's website to find cars near you.

Your best option?

Don't take big financial risks for rideshare driving, like quitting your current job or buying a car you can't afford. But if you're in an active market like Chicago or New York and you need a car anyway, it's possible to make it work financially.

Unsure of your market? Try renting for a few weeks. It'll cost more in the short term, but you won't be locked into a demanding financial obligation.

MORE:

How to buy a used car

Auto loan calculator

Used-car leasing hits the sweet spot

Nicole Arata is a staff writer at NerdWallet, a personal finance website. Email: narata@nerdwallet.com .

NerdWallet is a USA TODAY content partner providing general news, commentary and coverage from around the web. Its content is produced independently of USA TODAY.

How Can I Get a Car Through Uber

Source: https://www.usatoday.com/story/money/personalfinance/2017/01/08/5-ways-get-car-you-need-drive-uber-lyft/96214312/

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