Thinking about leasing a car to drive for Uber

Syd1108

New Member
This has been posted before, but it is already outdated so I'm starting a new one.

I'm a uni student here in Sydney who wants to make a good amount of cash since I cannot get a job related to my studies since these people want someone experienced in the field. A friend recommended driving for Uber and I only have a 1995 car which is not allowed since a minimum 2006 (2007 by 30th of June) model must be driven.

I'm thinking about leasing a car with the partners at uber-marketplace. Renting one is too expensive (>200 a week payment). If I am going to lease a car I want to make sure I can pay it weekly for 12 months, since 12-24 months is required. That is a BIG responsibility for me and I am worried if I can pay it continuously or not and I barely have any money and I have a pretty low paying job (getting paid below poverty line).

Please help me decide. Talk me out of it if you wish. Will I get good money if I drive at least 30 hours a week? Is it worth leasing a car which I must commit 12-24 months?
 

everythingsuber

Well-Known Member
Get a cab license. No advantage with Uber outside having Über tell you that you are one of "The Cool Kids" do not under any circumstance borrow to drive. You will not choose your hours your hours will choose you. Cab you can drop in and out you are free.
 

matPORTS

Well-Known Member
Yes - first factor is how much is your lease payment going to be? Or at the very least what do you expect it will be?

Secondly, I believe you can make some money driving 30 hours a week. But only if you are willing to drive the bulk of these hours during the peak times of demand, where you will also be more likely to pick up a surge fare or two as well (Friday night, Saturday all day/night Sunday day time).

Have you factored in and considered:

Your initial set up costs? Appropriate rego, insurance, licensing (driver authority card).

Your on-going running costs? Fuel, cleaning, maintenance, tyres, mobile phone/data.

This work does take it's toll on the car. If you are car savvy, you may enjoy cleaning and servicing it yourself in order to save a bit of money, but do expect to have to get these things professionally done at one point or another. Also, time is money too.

Have you got a good accountant to help manage your tax affairs? If you are leasing there could be certain tax breaks available to you. Definitely suggest speaking to an accountant before you even consider signing up.
 

Syd1108

New Member
Get a cab license. No advantage with Uber outside having Über tell you that you are one of "The Cool Kids" do not under any circumstance borrow to drive. You will not choose your hours your hours will choose you. Cab you can drop in and out you are free.
This one seems interesting. Where can I learn more about this cab license?
 
Last edited:

SydX

Well-Known Member
Thats about 1/3 expense to potential revenue... after u factor ur running costs, gst, tax etc... i doubt youll have much leftover...
 

Syd1108

New Member
Yes - first factor is how much is your lease payment going to be? Or at the very least what do you expect it will be?

Secondly, I believe you can make some money driving 30 hours a week. But only if you are willing to drive the bulk of these hours during the peak times of demand, where you will also be more likely to pick up a surge fare or two as well (Friday night, Saturday all day/night Sunday day time).

Have you factored in and considered:

Your initial set up costs? Appropriate rego, insurance, licensing (driver authority card).

Your on-going running costs? Fuel, cleaning, maintenance, tyres, mobile phone/data.

This work does take it's toll on the car. If you are car savvy, you may enjoy cleaning and servicing it yourself in order to save a bit of money, but do expect to have to get these things professionally done at one point or another. Also, time is money too.

Have you got a good accountant to help manage your tax affairs? If you are leasing there could be certain tax breaks available to you. Definitely suggest speaking to an accountant before you even consider signing up.
No, my accountant is online. I do my taxes online. I actually have taken those additional expenses into consideration. I can do the washing/oil changes so I save money. Thanks for the suggestion.
 
Last edited:

Syd1108

New Member
Thats about 1/3 expense to potential revenue... after u factor ur running costs, gst, tax etc... i doubt youll have much leftover...
So it's a terrible idea to borrow a car just for Uber. Cheers. This saves me from a major problem. Not to mention the competition with other Uber partner drivers.
 

SydX

Well-Known Member
Youll make more & save urself alot from stress & hassles by packing shelves for Woolies...
 

Dissendat

Well-Known Member
I've had some passengers says things to me that I will NEVER support.

1. Maybe I should quit my job and do Uber.
2. Maybe I should buy a new car to do Uber.

If you have a car that is eligible and you do this casually, or lose your real job, then by all means Uber. If not, do not do it.

Another thing people haven't mentioned is you may lose your licence or Uber may drop the rates even lower which will mean you may be stuck paying for a car that you can't use (loss of licence) or that you are just scraping buy after lease payments (fare reduction).
 

matPORTS

Well-Known Member
yeh, thats absolutely correct. Driving in Sydney is becoming a joke now. Too many cars on the road.

Oh boy is it what! Look at Bondi Road on the Uber app during busy times. You will see 15-20 UberX cars either on that road itself or in the near surrounding streets. It's bad enough even if they weren't there!!

I've had some passengers says things to me that I will NEVER support.

1. Maybe I should quit my job and do Uber.
2. Maybe I should buy a new car to do Uber.

If you have a car that is eligible and you do this casually, or lose your real job, then by all means Uber. If not, do not do it.

Another thing people haven't mentioned is you may lose your licence or Uber may drop the rates even lower which will mean you may be stuck paying for a car that you can't use (loss of licence) or that you are just scraping buy after lease payments (fare reduction).

HERE HERE !!

I think about 90% of my conversations with passengers are about whether Uber is worth it or not. Straight away I tell them it's a good secondary or back up gig, but you also need to understand the true economics behind it all.

The question that really needs to be fired back at people who ask whether it's worth it or not - do you believe it's cheap to use this service as a passenger? If the answer is yes (the most likely answer) - then do you think the drivers are making a lot of money, keeping in mind first and foremost that Uber takes a 20% cut of what you pay?

We won't begin to over complicate the issue by telling them about GST and operating expenses. Keep it simple for simple minded amongst us.
 
Last edited:

paul1969

Active Member
Stack shelves. Uber is a waste of time.

Its demoralising at the moment, just too many cars and drivers are getting peed off I'd say. Uber will end up with crap drivers, as the decent ones will quit and only the dumb will drive under the conditions that will unravel.
 

Damo66

Well-Known Member
I would definitely not recommend leasing a car to do Uber. You would find that after all costs are factored in you'd be netting about $10-15 per hour. You're much better off finding a casual job.
 

Uber trial guy

Active Member
From my little experience in dabbling with uber, the original concept of uber was to mobilize and put to work the value in the unused vehicle. I.e. The car that is sitting in your garage when you are sitting at home doing nothing.

The idea being you already own your car, pay the insurance, service costs, rego etc every year, yet 90% of the time your car sits parked, doing nothing.

So when you are not doing anything, you could uber, and the costs were little. Some extra petrol, maybe some more wear and tear, but not much, and now of course gst, and tax.

Under that regime as a casual side earner, yes, you could probably easily make an additional say $200 per week easily after all expenses/gst/tax. Nice pocket money.

But as a full time job, or even 25-30 hours a week, and leasing a packaged vehicle, I don't think it would be worth it

I do know people doing uber at about the 50-55 hours per week and lots of late night weekends. So same more or less as full time work hours wise, and after all expenses, tax and gst on average they take home $1000-$1200 per week. That's ok, not great money. They are grossing almost $2500 a week. But then gst ad tax, 3-4 tanks of petrol a week, 1600-1800 Kim's on their car a week (that means at least 80,000km per year) running two mobile phones, car servicing every 3 months. Plus then every qtr another 6-8 hours dong your books and bas. There is a lot of bookkeeping when you do that much driving. But for the people I know doing this it suits their lifestyle, and they loooooooove the freedom, and they looooooove uber.
 
Top