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After driving for several months, I realized that I earned from Uber for hours spent driving with passengers, AFTER THE DEPRECIATION of my vehicle (according to CRA guidelines), less than minimum wage in Ontario.
After realizing that, I quit Uber.
Recently, I have heard that Ontario got new laws that provide minimum wage for Uber and other gig employees.
Does anybody know how this new law deal with depreciation of cars used for Uber?
 

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I started using my vehicle when it was 3 years old. It is now 9. I have 170K on it. According to Edmunds my resale value with 170K is $8700. Without rideshare miles I accumulated which are about 45,000, the value would be $2,000 more. Been doing rideshare since 2016 which is 6 years. I lost $333 a year. I put maybe one set of tires on it that would not have been necessary otherwise and had to change the rotors one more time than necessary. Maybe 7 or 8 more oil changes than would have been normal. I'll throw a figure of about 2K on that stuff. Loss of another $333 per year.
So, about 1K a year in depreciation costs. So, yes it definitely cuts into what you make, unless you can do the work yourself.

Am I figuring this out wrong?
 

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I started using my vehicle when it was 3 years old. It is now 9. I have 170K on it. According to Edmunds my resale value with 170K is $8700. Without rideshare miles I accumulated which are about 45,000, the value would be $2,000 more. Been doing rideshare since 2016 which is 6 years. I lost $333 a year. I put maybe one set of tires on it that would not have been necessary otherwise and had to change the rotors one more time than necessary. Maybe 7 or 8 more oil changes than would have been normal. I'll throw a figure of about 2K on that stuff. Loss of another $333 per year.
So, about 1K a year in depreciation costs. So, yes it definitely cuts into what you make, unless you can do the work yourself.

Am I figuring this out wrong?
Yes, maintenance is different from depreciation.
Depreciation is the loss of value due to time and wear.

And, you're considering the EXTRA depreciation because it's used for business.
You should be looking at TOTAL depreciation.

If you buy the car for $20,000 and it is worth $5k in five years, and you have to replace it every five years, your total depreciation is $15k, or $3k per year.
You should 'set aside' $3k per year for depreciation. So that at the end of the five years, you sell the car for $5k and go to your savings account for the other $15k and replace the asset.

What most people do is finance the depreciation, and pay interest on it. That is bad business management. Expensive, and it hides the expense from owners and investors.

As previously mentioned, you should NOT mix personal and business use of an asset. It confuses issues, and the IRS discourages it. It is not good Generally Accepted Accounting Procedures (GAAP).
 

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I started using my vehicle when it was 3 years old. It is now 9. I have 170K on it. According to Edmunds my resale value with 170K is $8700. Without rideshare miles I accumulated which are about 45,000, the value would be $2,000 more. Been doing rideshare since 2016 which is 6 years. I lost $333 a year. I put maybe one set of tires on it that would not have been necessary otherwise and had to change the rotors one more time than necessary. Maybe 7 or 8 more oil changes than would have been normal. I'll throw a figure of about 2K on that stuff. Loss of another $333 per year.
So, about 1K a year in depreciation costs. So, yes it definitely cuts into what you make, unless you can do the work yourself.

Am I figuring this out wrong?
yes you are doing it wrong

depreciation and maintenance are two different things

Depreciation is the value of an asset when it is put into service divided by its remaining economic life. For example my car was worth $20000 when i started driving uber and lyft. I planned on driving it for 3 years. at 70000 miles per year estimated its value would be $2000 then So I planned on using $18000 of value in 3 years, or $6000/year. So my depreciation cost would be $6000/yr or 8.5 cents a mile

In fact at the end of this year I will have driven 5 years at 70000 miles/yr. and the car is essentially worthless So at the end of the year my actual depreciation will be $4000/yr or less than 6 cents per year


Maintenance is the stuff you mention that you do to keep the car running, oil changes, transmission and cooling system service, brakes, tires, shocks, etc etc

If you are driving full time, and expect to replace your car at some point I think you should treat that depreciation as a real expense and put 5 -10 cents per mile in the bank so to have the money to buy another car when needed
 

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Be like most rideshare drivers (which aren't very bright) and ignore factoring in depreciation as an expense, along with maintenance, tires and repairs. Focus only on gas (if that) when considering expenses so when you make $200 you can think, "oh, I made $160 today after gas" when in reality, you made maybe $140 when amitorizing all the other expenses (including depreciation).

Sarcasm aside, I hop on NADA each month, put in my mileage at the beginning of the last month, subtract that from the value I had last month, and consider that my depreciation cost for the month. Easy peasy. I keep a running tally of all other expenses to calculate a % overhead in cents/dollar. Right now I'm hovering around $0.18 / $1.00. Before gas prices went up it was closer to $0.15 / $1.00.

I would bet hard money that many drivers have expenses up to $0.50 on the dollar. If I've learned anything being on these forums, it's that most RS drivers aren't very smart.

As far as mitigating depreciation, that's just a matter of purchasing a non-German (except maybe VW), non-Chrysler product, then driving it until the wheels fall off. Ideally a Toyota or Honda product. Once you get past about 150K miles, depreciation drops off pretty quick. The difference in a car with 150K miles and 155K miles for example, isn't much. Nothing like going from 25K miles to 30K miles.
 

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I cant comment . But i want to say if your milage is incorrect you can buy a milage programer from ebay for about 200 .This wonderfull tool will adjust your miles to the proper level. After that bad airfreshiner messed with yor instrament cluster and raised the miles to an inaccurate amount . Change it according . Does it really have 150k ? Or the average of 50 k as other cars ? Or that pot hole could also goof up a lot of electronics . Keep track of the miles you drive daily so you will know the proper miles driven . Does this answer some of your question ?
 

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After driving for several months, I realized that I earned from Uber for hours spent driving with passengers, AFTER THE DEPRECIATION of my vehicle (according to CRA guidelines), less than minimum wage in Ontario.
After realizing that, I quit Uber.
Recently, I have heard that Ontario got new laws that provide minimum wage for Uber and other gig employees.
Does anybody know how this new law deal with depreciation of cars used for Uber?
i factor Depreciation based on my actual scenario -not tax laws (which in the States is based on MACRS and use ‘Standard Mileage’
* Canadian tax law will differ
My actual scenario (2014 Altima purchased at $12,000 (including tax) with 60K - driven 220K= .07 / mile Deprecation cost factor
.10 / mile average cost of fuel
.05/ mile Repairs cost factor
Overall .22/ mile cost - overall gross revenue including ‘dead miles’ averages .75 / mile
Key is operating an inexpensive reliable car which can rack up miles with minimal fuss
 

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I cant comment . But i want to say if your milage is incorrect you can buy a milage programer from ebay for about 200 .This wonderfull tool will adjust your miles to the proper level. After that bad airfreshiner messed with yor instrament cluster and raised the miles to an inaccurate amount . Change it according . Does it really have 150k ? Or the average of 50 k as other cars ? Or that pot hole could also goof up a lot of electronics . Keep track of the miles you drive daily so you will know the proper miles driven . Does this answer some of your question ?
Yeah, fraud is the answer... LMAO.
 

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I have a 2013 Honda Accord that had 44,000 miles in 2016 when I began rideshare. Before that I averaged about 14K miles a year. It is now 9 years later. I am a part time driver. Usually no more than 15 hrs a week, but pretty consistent throughout the years. I now have 175K. That's about 50K more than I would of normally had.
 

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People make depreciation more complicated than it needs to be. Basically your car depreciates with age and miles. When you drive a lot of miles that removes more value than age. The simple method I use is to look up my vehicle on Kelley blue book and NADA. Use their websites to calculate the value. Then re-calculate a value adding on how many miles you drive per year. Divide the difference in value by the number of miles and you have your depreciation per mile.
 

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After driving for several months, I realized that I earned from Uber for hours spent driving with passengers, AFTER THE DEPRECIATION of my vehicle (according to CRA guidelines), less than minimum wage in Ontario.
After realizing that, I quit Uber.
Recently, I have heard that Ontario got new laws that provide minimum wage for Uber and other gig employees.
Does anybody know how this new law deal with depreciation of cars used for Uber?
No kidding ! All Uber drivers end up losing a chunk of their income due to auto depreciation. Financial illiterates must pay the price. Taxi rates are HIGHER, to account for depreciation, repairs, maintenance as well as the possibility of an accident with passenger for hire insurance ).
 

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2021 Chevy Bolt EV
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Guys, how you deal with depreciation of your cars?

I handle depreciation in an unusual way...
1) Bought a brand new EV dedicated to driving rideshare part-time.

2) I fixed my costs by paying $2,000 to extend the 8/yr 36K mile bumper to bumper to 150K miles.

3) At the end of 8 years the car will long ago be paid off and I should not be out of pocket for repairs. Therefore at that point I will assume the vehicle has depreciated to $0. Which is fine. My business plan assumes the car will be worth nothing after 8 years. Any further use I get from the car after that time will be a bonus.
 

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2021 Chevy Bolt EV
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Here is the secret.....go on a three hour roll at the craps table and pay cash lol
Or a three hour tour. No worries about rideshare or delivery when you're trapped on a desert island.
 
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