If you’ve joined the growing ranks of Uber drivers out there, or are thinking about it, owning the right car can be a difference-maker between putting more cash in your pocket each month, or not. Buying new is probably not an option for most due to several factors, starting with the higher price of a new car which will jack up your monthly payments. Insurance premiums will also be costlier for a new vehicle, and it will then probably depreciate in value by up to 20% soon after you drive it off the lot- but more on that later.
So for most Uber buyers, purchasing new simply isn’t practical with respect to your profit margins, which then leaves you with the option of targeting a quality used car for your business.
That said, it’s important to find a vehicle with the best value for the price that also won’t nickel-and-dime you each month with expenses. Then there’s the fact Uber operates 4 different rideshare platforms and that your car must conform to the guidelines set forth within the platform(s) of your choosing. Before coming on board, new drivers must also pass an Uber auto inspection, which means the one you buy needs to be up to their standards.
To simplify matters, Uber now publishes a pre-approved vehicle list for its drivers, with vehicle requirements broken down by platform. All of these factors come into play when you’re considering which used car to buy. So if you’re an Uber driver who’s looking to upgrade your revenue-generator, here are some tips to help direct you towards making the best used auto buying decision.