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Lease-to Own, Can i make money in LA, Am i Crazy

Discussion in 'Pay' started by painfreepc, Aug 1, 2014.

  1. grams777

    grams777 Moderator Moderator

    Location:
    Nashville
    Good idea. It would be interesting to know. If it truly had unlimited miles for an early turn in, I could see how that could make this more lucrative.
     
  2. Dave P

    Dave P Member

    I don't think you're crazy at all. I think you're trying to create opportunity for yourself. I notice that you're a veteran taxi driver, which makes a big difference! Let me ask a few relevant questions here:
    1. What were the terms of driving for a Taxi co? Were you leasing the cab and for how much? Did they provide insurance? How much were you working and clearing? Were you an employee, or were you self employed? I'm guessing your earnings were mostly cash. Without saying too much, were you paying many taxes as a cabbie?
     
  3. Jeff212

    Jeff212 Active Member

    Why not buy a cheap used car in excellent condition and drive it. It is easy to find a very clean used car to UberX in and provide great service to riders. Think about a 2010 civic, a used Nissan Versa.... Why everyone wants a new hybrid to drive into the ground blows me away, after a year or two making money on a used quality clean car would give you a better answer, hell.... Drive a used clean car for 6 months to see if buying a new car would work.
     
  4. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    in 2001 i worked for pomona yellow cab for 1 year, $100 a day and $0.10 per mile 5 to 6 days a week 5 am to 5pm,
    yellow cab san bernardino ca and most other taxi companies i worked for was $500 to $550 per week for a 24/7 lease,
    insurance included, taxi cab dispatcher payola for a good trip not included,

    nearly all taxi drivers in the IE are independent contractors,
    the fare meter is not recorded,

    making more than $400 per week driving taxi in the IE is very hard,
    paying taxes, i plead the 5th
     
    Last edited: Aug 3, 2014
  5. Jeff212

    Jeff212 Active Member

    I just checked out of curiosity... There are a good amount of Nissan Versa cars under 10k in very good shape.... Worth checking into, I know you said bad credit but maybe even find a 6k and under car to get started....
     

  6. Dave P

    Dave P Member

    With Uber, you won't be able to claim the 5th. Every dime you make will be 1099'd. You should be able to deduct all expenses, including most of you lease payments ( I think). You will end up paying income tax plus an additional 15.3% self employment tax on your actual profit. This is in addition to any income tax, however, after deductions, this is manageable. That being said, I think you'd definitely come out better than driving a cab. The biggest worry would be getting deactivated after you've made such a big investment.
     
  7. Sydney Uber

    Sydney Uber Well-Known Member

    Location:
    Sydney Australia
    Driving:
    UberBLACK
    UBER - the friend of the Tax office....
    "We don't pay tax, but we'll make sure drivers do! "
     
    Britchiq likes this.
  8. Dave P

    Dave P Member

    Sydney, I have no idea what your complaint is here. Are you under the impression that Uber has any other choice but to issue a 1099? Why are so many of you so pessimistic and negative about the companies you choose to do business with? I'm a new driver and I've done my research and half of the stuff so many drivers like you complain about is not even within Ubers control. If you're so unhappy, why don't you turn in your iphone and deactivate your account. Nobody's forcing you into your car everyday.
     
  9. Dave P

    Dave P Member

    BTW, I have a 2006 Chevy Aveo that I bought from a private party for 3500 with 90k miles on it from Craigslist. It looks new and with the proper maintenance I should be able to get at least another 150k out of it. I'm just gonna Uberx it to death and then buy another car :)
     
    Chip Dawg, Sydney Uber and Jeff212 like this.
  10. Jeff212

    Jeff212 Active Member

    That's my thinking on what car to use, if your going to have to buy for this job, get a clean reliable "cheap" car and work like you would work any other tool for getting a job done.... My car is not new, it is my old commuter when I lived in the mountains and had a long drive, now it is my "cab" that is paid off and yes it has a lot of miles but I have cared for it well and it runs perfect. I am surprised when many of my rides are shocked I am driving a manual.... I never realized how many people had never been in a manual transmission vehicle before until I started this....
     
  11. Sydney Uber

    Sydney Uber Well-Known Member

    Location:
    Sydney Australia
    Driving:
    UberBLACK

    Excellent purchase! Drive it into the ground over 3 years with $3500 capital cost. You'll be taking holidays in Fiji after that! Better still get a partner to be also nominated on Car ownership papers so they can help drive it into the ground.

    I'm not saying to neglect it, pick its half-life and change some major items to "renew" it and get the most use at the tail end of its life on new componentry. Like springs and shocks all round - just toss 'em when half-life comes along. Go to a wrecking yard and get a newer back passenger seat. Get driver's seat repadded. Brake discs all round and calipers overhauled. The list goes on.
     
    rayace01 likes this.
  12. Sydney Uber

    Sydney Uber Well-Known Member

    Location:
    Sydney Australia
    Driving:
    UberBLACK
    Just pointing out that big corporations with slippery offshore tax minimisation set ups and clever tax Attorney's pay so little percentage wise compared to workers and their Income tax
     
  13. Dave P

    Dave P Member

    No doubt about that Sidney. We definitely see eye to eye in regards to effective corporate tax rates vs. individual income tax. You'll get no argument from me. Over the past 100 years, the burden of financing the government has shifted from Business to individuals and the pendulum now swings way too far to us then them. I thought you were singling out Uber though, that didn't make sense. Sorry if I misunderstood.
     
  14. Dave P

    Dave P Member

    Fluids, Tires, Brakes, and every 60k, a new timing belt/waterpump (the kit costs under $100 and the labor =$200) and this baby should earn me a 150k easy, before she's dead. (Pimpin' ain't easy) lol
     
    rayace01 likes this.
  15. Sydney Uber

    Sydney Uber Well-Known Member

    Location:
    Sydney Australia
    Driving:
    UberBLACK
    How about trying the Medallion Financial Corporation. They currently finance 1318 Medallions and Vehicles in the US. Looking at their balance sheet, its going south.

    An approach from an experienced Cabbie wanting finance for a RideShare vehicle would certainly shake the the first few people you approach there - they wouldn't know what to do. But if you put a good business case up with your experience in Taxis behind them, they may wish to experiment and diversify.

    The interest rates they offer range from 2.9% all the way to 12% for those who may be a higher risk I guess.

    Don't take no from the 1st person, go over their heads and tell them that you will be doing them a favour by allowing them to look into the RideShare business, build a risk profile and profit from a new income stream.
     
  16. Jeeves

    Jeeves Well-Known Member

    Driving:
    UberX
    It sounds to me like UberX, even with a lousily priced least on a Camry could be a better situation for you than driving a taxi. As others have said the future is uncertain. However I would argue that the future of UberX in itself is likely. Worst case scenario rates my drive down to the area where you are still having a hard time making more then $400 a week. But at least you will have the flexibility that UberX provides.
     
  17. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    [​IMG]

    this is from Uber, they think $530 GROSS per week in Charlotte, NC is good driver pay.

    Subtract the Camry lease, gas and insurance and you will make far less then $400.00 per week, and Uber thinks that is great.

    Have you seen the Uber / Lyft ads saying make "$35.00" per hour? here they are saying GROSS $13.25 and you should be happy!
     
  18. grams777

    grams777 Moderator Moderator

    Location:
    Nashville
    I think the way the ads are worded are careful to say, up to $35 per hour. What they don't tell you is there may only be one hour in the week that is $35.

    Or like this example:

    https://uberpeople.net/threads/hourly-earnings-decline-after-three-months.1342/

    Make up to $30 per hour! *


    *Sunday morning from 2 am to 3 am.
     
  19. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    I get the careful wording of when/if you can make $30+ per hour... Like when they said a "fully utilized" Uberx car should make $90,000.00 per year (that is when I signed up!)

    Here it is in blue and Grey, $13.25 Gross is what Uber feels is adequate pay per hour Gross for it's non programmer "partners".

    I can't wait for the email for the Los Angeles market saying here is your 20% pay cut, $1.00 safe ride fee and $10.00 weekly phone fee.

    We KNOW it's coming.
     
    C@ttle and grams777 like this.
  20. veikveik

    veikveik Active Member

    I would not do it.
    Find a used 2007+ vehicle, finance it and run it until it stops.
    With Uber you are one ****ed up ride away from deactivation, no freaking way I would dive 20+K into it.
     
    Sydney Uber, vtexposfan and grams777 like this.

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