Worried about my km

Van1984

Active Member
I have taken my car for lease till 40,000 km. Now I am crossing extra km company will charge me .18 cent per km. Now I am worried how will I drive uber. I normally drive 700 km in week and earn 500 dolar. It mean $125 I have to pay company $80 for Gas forget about my car premium, insurance ,car service cell phone bill and wear and tear I will go negative. Ptesently In 30 hours I am making $ 305. Which is $10 per hour. Today I got a ride for bolton return no ride I drove 50 km return. I face same problem in airport return no ride. Any advice guys I do not want to drive 200 km extra but if I wait in one place then no request I need to come to main road and happening places. Or else I just have to work 50 hours and It will very low dollar per hour. One more thing I want to mention when ever sucharges going to start like friday and satuday 1.30 am to 3.00 am uber give me a ride which is 10 km away from surcharges. If I am in border of surcharges then I get request of no surcharges. Some days were good I made $65 per hour. But that happen once in blue moon.
 

Deoxlar

Well-Known Member
When you are limited by km or have a high cost per km ratio, it is very impractical to look at hourly, unless you have an equation to factor in the hourly after your full expenses. Focus on $/km instead.

How much per km does the dealer charge if you go over?
 

Athos

Well-Known Member
You could try to get someone to take over your lease. Typically you throw in a free month or three to sweeten the deal for the next person. Then you could buy a proper Uber car like a Civic, Corolla or Prius. I'm sure other people have their favorites but I would go for a car that has top fuel economy and is most reliable. The Prius fits that requirement. A 2012 Prius might cost you $13,000. That might be a bit much for you but at 40-60,000km per year the fuel savings will be considerable. A Prius might use half the gas of a Corolla. Hybrids are easy on brakes too.

If you want a 2008 Civic hybrid cheap send me a message.
 

CDNcrippler1

Well-Known Member
When you are limited by km or have a high cost per km ratio, it is very impractical to look at hourly, unless you have an equation to factor in the hourly after your full expenses. Focus on $/km instead.

How much per km does the dealer charge if you go over?
Lol he says it in the second sentence

You can buy out the car at the end of the lease term
Never worth it, ends up costing you more and by the time it is done it is ten years later and not worth anything in trade-in
 

pacifico

Active Member
Don't worry just solve the problem, here is the thing a simple math will tell you that you are gonna loose money : I work part time only weekends like 500km then x 50 weeks is 25.000km for uber + 300km for personal use x 50 15000km = 40000km I will never lease a car for uber
if you do 0.56km and they charge you 0.18 then you loose 32% of profit for the followings 2 or 3 years too bad, just get rid of lease and buy an used and reliable car with a lot of km left :smiles:
 

imsam

Well-Known Member
I'll share you how I'd deal with it. So you have a lease until 40,000 km. Let's just assume you go over the limit and the km reaches 60,000 km. 1 extra km = $0.18.

If you know your limits and gas costs, you can just set some numbers to each km you drive for your ubering/business. In the below picture I've set some numbers:

A) $0.15/km for gas ("safe" average number)
B) $0.18/km for extra km (aka depreciation or wear and tear)
C) $0.01575/km for oil change (assuming it's a $126 synthetic oil change with filters and everything for every 8,000 km - $120/8000)
D) $0.10/km for any emergency related savings for the car (tickets etc)
E) $0.05425/km for savings for a new car down payment (it's always nice to save money) (I got this weird number by 0.5 - the first 4, so it has a nice total $0.50/km - easy to remember)​

*ignore extra km and new car savings are different*


As you can see in the very top trip, it's a small trip, I net $2.29 (about 66%) out of $3.44 (after uber fee), so 33% went to costs. Now, you have some options:

1. Get one with much better fuel economy and lower extra km cost (these cars usually have lower oil change costs too)
2. Drive a lot until you reach your daily net goal

Now, each time you get a payment from Uber, go back and see how many km you drive that week. If the payout is $256 and if total trip km is 200 km. Then take out $0.50 * 200 km which is $100. Put that aside and consider it as an expense.

If you do this, by the end of your lease you won't have to worry about extra km cost surprise later because you've been putting aside money for it. You'll have some savings for a new car down payment, you'll have some extra emergency saving money (if you didn't have to use it much while leasing).

Let's see some numbers (using your numbers):

Assuming your total odometer reads 60k, so 20k went over.

$0.06 * 60,000 = $3,600 (you should have put this much aside by the end to pay for the extra km - 20,000 * 0.18 = $3,600)
$0.10 * 60,000 = $6,000 (you should have emergency saving money this much by the end)
$0.17425 * 60,000 = $10,455 (you should have this much for new car down payment by the end, you can add with the emergency savings if you didn't use that fund much, so it's over $15,000)

The rest...
$0.15 * 60,000 = $9,000 (gas cost)
$0.01575 * 60,000 = $945 (oil change costs)

Total costs operation at 60,000 km = $30,000

If we use the ratio as in my example where 33% goes to costs, and 67% or roughly 66% goes to net. Then you can say you'll make about $60,000 net in that 60,000 lease term.

However, you might have to pay some more money off from that net such as:

  • Tax - if you manage to drive that much within one year which is crazy but possible because you'll have to be doing 5000 km per month, roughly 250 km per business day). And tax might be calculated from uber's payout numbers, not your personal net.
  • Auto Insurance (assuming $3,000/year, $250/month)

But you can find ways to reclaim the km's spent as tax deductibles, I'm not sure on how much exactly it'll be, overall we can estimate the net for if you manage to pull 60,000 km in a year, it'll be around 50k-55k.
 
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FenderBender

Well-Known Member
Here's a dirty truth most Uber drivers don't want to hear:

If you want to make money doing Uber, those short painful downtown rides are your best friend. Dollar per km is everything, Lease or no lease, depreciation is real.

If you're driving 60km every hour to make that $20-25 an hour, you're literally making $0 net. Enjoy the cash in hand but understand you are not in the black.

For most Uber is a quick loan against the value of your car. You'll pay the piper (and then some) when it's time to sell.
 

Karl Marx

Well-Known Member
Here's a dirty truth most Uber drivers don't want to hear:

If you want to make money doing Uber, those short painful downtown rides are your best friend. Dollar per km is everything, Lease or no lease, depreciation is real.

If you're driving 60km every hour to make that $20-25 an hour, you're literally making $0 net. Enjoy the cash in hand but understand you are not in the black.

For most Uber is a quick loan against the value of your car. You'll pay the piper (and then some) when it's time to sell.
You could have been an excellent methodist preacher. I have to think that Uber knows the well is bottomless when it comes to recruiting.

The last several weeks of Uber headlines have been incredible to read. The mainstream media have discovered that Uber as a whipping boy is more lucrative than when it touted Uber as the 8th wonder of the world.
 

pacifico

Active Member
Here's a dirty truth most Uber drivers don't want to hear:

If you want to make money doing Uber, those short painful downtown rides are your best friend. Dollar per km is everything, Lease or no lease, depreciation is real.

If you're driving 60km every hour to make that $20-25 an hour, you're literally making $0 net. Enjoy the cash in hand but understand you are not in the black.

For most Uber is a quick loan against the value of your car. You'll pay the piper (and then some) when it's time to sell.
mmm... today I changed strategies as per peers counsels and it was very profitable :smiles: So I did the same km as I do all the time but it was long way less downtown 1km trips, for me its boring being trapped in the downton wheel :smiles: doing a lot of short trips, more stress for the car also, brakes, more posibilities of being hit...
 
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