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Play with snakes (and creditors) and eventually you will get bit.
Yes indeed, if you don't manage your debt and credit well.

So basically you all are saying that no one should ever get a car loan, or student loan, or mortgage a house because it involves getting into debt and dealing with creditors. Or a small business should not get a business loan. I'm I understanding you guys correctly?
 
^ um... OK

Some of you are a little slow at understanding this so I'm going to break it down another way.

As an Uber driver, you are not an employee of Uber. You are really a contractor utilizing Uber's platform to generate revenue. Your revenue minus expenses is your profit. With that said, a lot of people have the mindset that Uber is their job and treat the vehicle they drive as a liability instead of an asset. You have to invest in assets.

Your vehicle is the biggest asset in your Uber "business". Why would you scrap up $5,000 to buy some crap car. Taking on debt can be good because the debt will translate into future revenue for yourself by securing a reliable vehicle now. It allows you to free up cash stream to run your business. Just like most student loans are considered "good debt" because it allows you to invest in your education now which leads to future earnings.

Going to Rooms 2 Go and financing furniture for your crib is "bad debt". Taking out a loan for rims for your car is "bad debt". I do not recommend taking on "bad debt".
I am not slow on the uptake. Going into debt to purchase a car that you are going to run into the ground is not sound business sense.

You can purchase a decent vehicle for 5k. Drive it for 2 years, pocket the 350-400/month for 24 months and then upgrade with your new purchase.

Play the long game not the short game.
 
I am not slow on the uptake. Going into debt to purchase a car that you are going to run into the ground is not sound business sense.

You can purchase a decent vehicle for 5k. Drive it for 2 years, pocket the 350-400/month for 24 months and then upgrade with your new purchase.

Play the long game not the short game.
Umm, companies purchase (actually, lease) vehicle's for their business everyday. How is that not sound business sense?

What vehicle can you get for $5k that is decent and and low miles? What about warranty?
 
Umm, companies purchase (actually, lease) vehicle's for their business everyday. How is that not sound business sense?

What vehicle can you get for $5k that is decent and and low miles? What about warranty?
We are not talking about companies who have a fleet of cars but an individual who is trying to get ahead in life. You can't equate the two.

Having a nicer car does not technically get you more requests and hence more revenue. Yes, there are some riders who car shop but on the whole most do not.

Evidently you have not shopped around. There are plenty of decent cars for 5k. Probably not with "low" miles but sound mechanically and cosmetically fine. A warranty is just another gimmick that is sold to those who do not plan for unfortunate circumstances.

I currently have a 07 Taurus that I purchased 3 years ago for 4k. I have more than got my money back.
 
Here is a real life Atlanta driver thinking that Uber will always send them pings to pay for their car debt. Stupid, unexpected things happen.
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That is an example of stupid car debt to run a business. Uber or Lyft can be taken away at any moment.
I have had Uber 'lose' an insurance card update (from 3 weeks earlier when submitted) and deactivate me at midnight.
I have had Lyft put my account in timeout for a location spoofing app. That location spoofing app? Was the Lyft app on my tablet that I left at home. Lyft makes the decision to mirror my devices.

People are being temporarily deactivated for driving impaired investigation.

Point being. Uber and Lyft are not exactly running your own business. They are not reliable for making sure the money will be there for a car payment.
 
If your account got deactivated, find the root cause. I know people who have been driving for years with no issues.

I personally would not be comfortable driving a PAX around in a vehicle I bought for $5K. I'm sure that deal may exist somewhere, like buying someone's dead grandma's car that was rarely driven, but most likely you are going get some old trade in that someone got from the auto auction that has who knows what problems and quickly realize $5K cars have $2,500 annual repairs. Add the revenue you loose while your car is in the shop and you're hustling backwards.

To each his own though. I view this as a side business to make money. Not a part time job. As a business owner I would never invest in $5K junk. Many businesses, including UBER, take on debt to operate. Uber is nowhere near profitable, yet is worth Billions. Think on that for a sec.

I'm not trying to knock what others are doing or thinking. I'm just trying to put you guys on to how the rich and highly successful view and treat money.
 
In December I bought a 2012 Chrysler 200 fully loaded (all leather heated seats, built in nav & satellite radio) clean inside and out for 4k (cash, of course), so yes, those cars are out there. Pax are always commenting on how nice the car is compared to others they've been in. That car has already paid for itself many times over. For me it's a side business, too, which means I don't spend more than I need to in order to make my goals. I will want to buy a nice car for my family, not to share with all the Uber pax out there who won't buy their own car.
 
In December I bought a 2012 Chrysler 200 fully loaded (all leather heated seats, built in nav & satellite radio) clean inside and out for 4k (cash, of course), so yes, those cars are out there. Pax are always commenting on how nice the car is compared to others they've been in. That car has already paid for itself many times over. For me it's a side business, too, which means I don't spend more than I need to in order to make my goals. I will want to buy a nice car for my family, not to share with all the Uber pax out there who won't buy their own car.
That's one helleva deal if you bought a '12 for $4K. That's great! I hope it lasts.

I'm not trying to be condescending. We just have different views on money and this Uber thing. I've been on both sides and decided I need to change how I handle finances to get where I want to go.
 
I'm not trying to be condescending. We just have different views on money and this Uber thing. I've been on both sides and decided I need to change how I handle finances to get where I want to go.
That is exactly what I did as well. No car debt since 2012 and now a 9 month emergency fund. Way better life now than the 'good debt' previous one.

I have an '06, '09 and '12 all paid for and on my accounts. No such thing as down time for repairs for me. I only spend $500 a year on repairs each car. The unexpected blessing of an emergency fund and active savings lifestyle is car repairs get cash flowed for that month and savings accounts are not decreased for them.

Your repair estimates are way higher than my reality. I remember cars from the '80's and early 90's... Cars today run much better for longer.

On a side note. My rating was 4.80 when I added the '06... It is now a 4.95. Pax want cheap and clean.
 
How long did it take you to have the money the buy 3 cars in cash plus a 9 month emergency fund?
4 years. When I started this plan, I had 2 car payments, a second mortgage, debt on another piece of land and child support payments. I know how to earn and spend and have a decent credit score.

Once the payments were extracted, the cash flow to savings was a breeze.
Now with several months history of breathing room with no debt and savings... I don't care to listen about good debt.
 
Here is a real life Atlanta driver thinking that Uber will always send them pings to pay for their car debt. Stupid, unexpected things happen. View attachment 233252

That is an example of stupid car debt to run a business. Uber or Lyft can be taken away at any moment.
I have had Uber 'lose' an insurance card update (from 3 weeks earlier when submitted) and deactivate me at midnight.
I have had Lyft put my account in timeout for a location spoofing app. That location spoofing app? Was the Lyft app on my tablet that I left at home. Lyft makes the decision to mirror my devices.

People are being temporarily deactivated for driving impaired investigation.

Point being. Uber and Lyft are not exactly running your own business. They are not reliable for making sure the money will be there for a car payment.
I totally agree you can't depend on uber to pay bills
 
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