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Need to include interest on the $20,000 purchase. Most Uber drivers aren't buying new cars for cash. Even if they are, it's fair to include the opportunity cost
by ams6110 9y ago
Need to include interest on the $20,000 purchase. Most Uber drivers aren't buying new cars for cash. Even if they are, it's fair to include the opportunity cost.
- astura 9y agoA five year $15,000 loan @2.5% interest is $972.63 interest over the life of the loan. Round it up to an even $1,000. You also should count sales tax, which looks like 7.5% in California,so an extra $1,500 total. Those are fixed costs but your car won't last nearly as long if you drive for Uber vs if you don't. You also don't have the choice of driving your car into the ground if you want to continue to drive for Uber.
- bunderbunder 9y agoAccording to Bankrate, 2.5% interest isn't a reasonable assumption these days. Looks like it's more like 4.5%, and I presume that's assuming you have really good credit. That said, even at 6%, you're only looking at $1,172 over the life of a 5 year loan, so I agree that it's a fairly negligible difference for the purposes of this calculation.
- astura 9y agoI was going with best case with perfect credit. My credit union offers 2% loans - https://www.navyfederal.org/products-services/loans/auto/auto-rates.php https://www.navyfederal.org/products-services/loans/auto/aut... those are 36 month loans though. You're right I probably should have done average case.
- softawre 9y agoI just got a new 30k Kia for 2.2% with 5k bonus cash. They also offered 0% and 3k bonus cash but taking the extra cash was better for me.