Should you Rent to Own or just Rent if you are a Rideshare driver?
The proliferation of the various Rideshare platforms across Australia such as Uber, Ola and Taxify to name a few, has created a flexible employment opportunity for most Australians. The ability to use your own vehicle to provide rideshare services to a range of users and earn an income accordingly, whether part-time or full-time, is a whole new segment of employment that has never been available before.
If you have your own vehicle and it meets the requirements of the Rideshare platform you are wanting to drive for, then you are practically good to go (if you have also met the other requirements that the Rideshare platform has in place for the individual driver). However, what happens if your car is too old or does not qualify to be used on the Rideshare platform, or perhaps you don’t even own a vehicle? Does this mean that you are prevented from driving for Rideshare altogether?
The answer is no. If you do not have your own vehicle or if your vehicle doesn’t qualify, there are several options available to be able to rent a vehicle specifically for the purpose of providing rideshare services. Each provider in the market has their own selection of vehicles and specific terms and conditions relating to the cost and use of each vehicle. Some providers provide their vehicles purely on the basis of a rental. That is, you can rent the vehicle at a fixed price each week and when you no longer require the vehicle, you can hand the vehicle back (generally by providing the hire company with some advance notice).
There is another option available to those who wish to drive a vehicle for rideshare and that is known as Rent to Own. In this scenario, the driver generally enters into a contract for a fixed period of time and agrees to pay a weekly amount for the use of the vehicle. At the end of that time period, the driver is then able to own the vehicle outright (depending on the provider, there may also be a need to pay a small amount otherwise known as a residual before ownership can be formally assigned to the driver).
So, if you aspire to be a Rideshare Driver, which one should you choose? Is it best to Rent to Own a vehicle or to just simply Rent a vehicle and hand it back? Your choice of option is best aligned with your own experience within the Rideshare community.
If for example, you are just commencing as a driver on the Rideshare platform and have never tried this before, then we would recommend that a Rental option might be best for you. As an inexperienced Rideshare driver, there may be elements of driving for Rideshare that you are unaware of and which you may not like or agree with. By simply renting a vehicle, you can provide the required notice period, and hand your vehicle back with no further penalty or financial outlay. This option allows you to dip your toe into the market and try it first hand without incurring the full expense or financial commitment associated with the acquisition of a vehicle.
However, if you have been driving for a Rideshare partner over a longer period and are now familiar with the requirements for rideshare and wish to continue to do this for the foreseeable future, then a Rent to Own option may be best for you. With the Rent to Own option, not only do you get to drive the vehicle to earn an income, you eventually get to own the vehicle. So, as you earn your income, you also get to pay off your vehicle at the same time. This ability to build equity in the vehicle means that you have something to show for all your hard work in addition to the income that you earn. At the end of the Rent to Own term, you can either continue using the vehicle for rideshare (without having to pay a weekly payment to anyone) or you can sell the vehicle for its market value giving you a tidy little lump sum to use on whatever you choose. If you do sell the vehicle and take the money, you can then commence another Rent to Own on a new vehicle and do it all over again.
As you can see, both options have their place in the market. The team here at One Car Group can assist you in determining which option may suit you best. With a broad selection of both new and used vehicles and both Rent and Rent to Own options available, there is simply no shortage of solutions for you to select from.
If you would like to discuss any elements of rideshare vehicles further or if you have any questions or would like to explore the various options in more detail, please feel free to contact our friendly team on 1300 616 993.