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If you’ve got some time and are interested in picking up some extra money, consider purchasing or leasing a sedan. Such a vehicle can both get you around town and help you make some extra money as a rideshare driver. Be sure to check the regulations regarding the size and age of your prospective vehicle before signing any documentation.
What Kind of Car Do You Need?
You can drive as an UberX with a four-seater sedan. To drive at this lowest price, your car should be less than ten years old. If you have a 6 passenger vehicle that’s less than 10 years old, you can drive with an UberXL rating. SUV drivers can serve as a top-of-the-line driver of UberSUV, as long as you can seat six and have a black interior and exterior. Depending on the size of the city and your transportation needs, a 4 door car will probably serve. According to Budget, a standard-sized car combines the benefits of a compact car and a more roomy vehicle. In it, you can haul 1-2 people and their luggage or other gear with little trouble.
Do You Need to Pay Taxes?
If your ridesharing gig is your primary source of income, find an on-line calculator and prepare to pay quarterly estimates. If you work, you’ll have taxes to pay. Paying penalties is a terrible waste of the time you took to early the money, so no matter how much you make, Get It Back advises setting some aside to pay in for quarterly income taxes. If you get some back, adjust your estimates down this year. If you have a W-2 job, ask HR to withhold at Single and 0 plus a bit more out of every paycheck if you’re worried. Carefully review your previous tax bills to see if you broke even.
What About Financing, Insurance and Gas?
When shopping for a vehicle that will both transport you and make you some money, don’t overbuy. Yes, you can make more as an UberSUV driver. However, then you will still have to transport a large, hot vehicle through the warm days of summer. To protect yourself from a bad decision, look for a sedan that’s at least 4 years old. Bonsai Finance advises making a substantial down payment to keep your payments down.
Setting up a side hustle will likely take an investment in your time or gear. Avoid the risk of overbuying on your personal vehicle to remind yourself that it’s not a great plan to overbuy. A bigger vehicle will cost you more in gas, may cost more in property taxes, and will be harder to keep clean. Purchase a vehicle you can manage, both physically and financially.
Keep reading: 80+ Ways to Make Extra Money