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He meant Uber. Uber is siphoning residual equity in people's vehicles into cash for Uber by underpaying for depreciation.
by HWR_14 3y ago
He meant Uber. Uber is siphoning residual equity in people's vehicles into cash for Uber by underpaying for depreciation.
- dpflan 3y agoWell said. Would like to see an economic / accountant analysis of this.
- mrguyorama 3y agoGo look it up, it's been done before. Uber basically required you buy a new car in certain circumstances, and don't pay enough to keep up with gas, repairs, and value loss of running a car around.
- sokoloff 3y agoUber allows 16 year old cars in my city. If you're driving a paid-off 5+ year old Honda or Toyota, I think Uber's paying enough for you to turn a decent profit from driving for them. https://www.uber.com/us/en/drive/boston/vehicle-requirements/ https://www.uber.com/us/en/drive/boston/vehicle-requirements... It probably isn't paying enough for you to buy a brand new car with a loan and drive that around for them. But they're not making you do that, either...
- skybrian 3y agoIf we translate that from financial to real-world terms, it means that people aren't getting paid enough to cover wear and tear on their cars. I think that depends on how much you paid for the car and how long it will last (depends on quality, how good the maintenance is, and luck). Also, cash pays the rent and lower depreciation doesn't (unless you sell the car), so some people may prefer this to borrowing money.
- prepend 3y agoYet they are evidenced by people driving for Uber. I’ve driven a Prius for Uber and think so fared quite well using the irs mileage deduction rate to offset almost all my revenue and paid nearly no tax, legally and covered actual depreciation. It’s funny to think 10 years of drivers are somehow idiots.
- ipaddr 3y agoWait until you find out how much cars are now when you have to replace your car 10 years earlier.
- prepend 3y agoI think I’m already aware. I’m comfortable with my decision. I haven’t driven in 5 years and I still drive my prius and probably have 100k miles left.
- ipaddr 3y agoAre you aware if you would have continued to drive and put on 100 more k for Uber you wouldn't be driving that prius today.
- prepend 3y agoI don’t understand your point. You keep asking obvious questions. Of course if I currently have 100k left and I drove 100k miles I would have zero left and a new car. Yes, of course I’m aware. I have done the math and am comfortable with my decision. I made extra money and it worked out fine. I understand depreciation and it’s the cost of goods. Are you aware that many jobs have supplies that are used up in the performance of your job? It’s pretty basic arithmetic that there are many scenarios where driving for Uber is a perfectly fine choice. Not everyone is driving an F150 and sitting in traffic. Lots of people drive efficient cars and are happy. The reason people drive for Uber for many years isn’t because they are somehow dumber than you and not aware of basic things.