For many people contemplating a career with Uber, Lyft, or another ridesharing company, it first means sourcing a vehicle to use. One option oft considered is leasing a car or using already leased cars. Is that possible? What else is there to know? Let’s take a look.
Leased Cars: Making Rideshare Driving Even Easier
If you don’t already have a vehicle to use for rideshare driving — or if you just don’t want to use your own — leased cars may be the answer for you. However, before you rent the perfect car, here are the answers to your most important questions.
Can I use a leased car for rideshare driving?
Yes. Simply put, as long as the vehicle meets the required specs for any given company, you can ferry wayward passengers through their days and nights.
That said, it is incredibly important to check the terms of your specific lease. There may be something in there preventing you from engaging in any business that uses the vehicle to make money. Additionally, almost every single lease agreement comes with a stipulation about mileage, but we’ll discuss that later.
Further, you will need an insurance policy in your name for your car. You’ll also need an inspection of the vehicle.
Can I begin a new lease on a car for rideshare driving?
As it says above, you most certainly can — but you do not want to fall victim to the fine print. Read carefully through the lease agreement before signing. If you end up with a lease that prohibits the use of a vehicle for business, your plan to drive for Uber or Lyft may have tanked before you even hit the road.
You’ll also want to be sure that the car you’re about to lease is well within the specifications of your desired rideshare company.
So what’s the deal with mileage on a leased car?
Most leases come with stipulations pertaining to a number of miles you can put on the car. For example, if your lease stipulates that you can only go 11,000 miles in a year, and you end up going 25,000 miles because of ridesharing, you may end up owing money per mile over the limit you’ve driven.
Do your homework when it comes to the lease. It’s important to make the right decision for your needs and ambitions.
Are there any alternatives to leasing a car from a dealership?
There sure are. As the rideshare industry has flourished in the era of smartphones, Uber and Lyft have both launched programs to connect would-be-drivers with vehicles. In fact, TechCrunch reported last March that following General Motors $500 million investment in Lyft, the two had ultimately jointly launched the Express Drive Program together. In this partnership, “GM will provide all-in rental cars to Lyft drivers, who will pay between $99/week plus mileage and nothing at all, depending on how many Lyft rides they provide using the vehicles.”
So now we know Lyft’s Express Drive Program connects aspiring drivers with a vehicle, insurance, and maintenance as part of the rental. These rentals are only available in select cities, so be sure to check that out.
Similarly, Uber Xchange offers leases on vehicles with no mileage caps. This means if you intend to drive substantial miles to maximize your profits, you need not worry about a limit on your miles. Uber also offers rentals where drivers can rent vehicles by the week. They can even rent by the hour! Regardless of the time, all options come with an insurance policy to keep you covered on the road.
There are also third party platforms out there like Maven Gig. This is a General Motors’ based service that markets flexible leases/rentals specifically for ridesharing and delivery purposes.
Some drivers have even looked to sharing on Craigslist. You’ll occasionally see someone post an ad seeking another driver to rent the poster’s vehicle.
With Uber, for example, a driver can rent another’s already-approved car. The car will already be registered with Uber. That means the driver who owns the car just needs to make sure to list you on the insurance policy.
Even a service like Hyrecar can be an option. Hyrecar allows would-be drivers to rent pre-approved vehicles from private owners to use for rideshare driving.
Are Leased Cars Right for Me?
Often leased cars are seen as excellent ways to try out being a driver for Lyft or Uber before making larger commitments on a vehicle. The most important thing is to be sure to find a lease that suits your needs and won’t land you in fine-print shackles.
As always, do your homework to find the program and vehicle for you!
Will you be using leased cars to start rideshare driving? Let me know your thoughts in the comments below!
UP NEXT: How to Become a Rideshare Driver