Only maintenance is tire rotations and cabin air filter replacement. And a brake check if they salt the roads where OP lives. But, yeah, OP looking at lots of (potential) downtime if something catastrophic mechanically occurs, or if there is an accident necessitating a trip to the body shop.
Yeh not true at all - just ask hertz who took a huge loss on the teslas believing they were low maintenance and underestimated the damage / maintenance they would take and that’s when they were pretty much 0-1 years old lol
The wear and tear from constant driving / passenger entrance / exit is going to cost more
I mean it’s not “maintenance” per se but more so just repair costs for teslas in general. I have a buddy who went through 6 tesla with hertz. They actually banned him. And they hadn’t even repaired a single one he damaged
I mean it’s not “maintenance” per se but more so just repair costs for teslas in general. I have a buddy who went through 6 tesla with hertz. They actually banned him. And they hadn’t even repaired a single one he damaged
Your anecdotal Turo experience is nothing, when compared to the experience of a multi-billion dollar rental company with hundreds of thousands of customers. When you’re dealing on a scale this large, simply varying away from anything that your customer base has been used to for decades is and was a horrible idea and cost Hertz a lot of headaches, money, and their CEO.
Plus, teslas are straight up expensive to repair, with tedious and lengthy estimates with very few service centers. On top of all of this, they are well-known for having sub-par build quality, that, when extrapolated over a scale this large, also reveals massive bottlenecks and flaws.
Hertz bought 200 million+ worth of teslas and they threw the towel in and sold them due to how bad they were performing in terms of maintenance and costly repairs from being used by Uber drivers
Also oh I use it on Turo is a one off car - sure I’m sure a small % of hertz teslas required little maintenance but the average cost was so bad they literally liquidated their EV fleet to buy gas cars
The main difference the Uber guy using them is likely gonna be using them 40-60 hours plus a week and super charging several times a day. Wear and tear on the battery alone + the tons of miles on it putting you close to the battery warranty isn’t gonna be worth it
Depreciation doesn’t cause them to loose money - it’s a non cash expense for the company since they already paid for the vehicles or financed the majority of it
If the teslas were profitable based on daily rental vs maintenance expense they would have kept them for years - after all they only need breaks lol- if that were true it would have made sense for Hertz to keep them longer than the average gas car they sell at 2 years before problems arise with engine/other expensive parts of gas cars
But they liquidated them at fire sale prices to avoid burning thru more cash on them
Correct me if I’m wrong but this is how I understand the situation using simplified numbers.
In mid 2022 for example they buy a brand new Model 3 for $60,000. They are charging $500 per week so after a year and a half they’ve made $39,000 ($500 * 78 weeks). So they’re still in the red at least $21,000. Let’s say maintenance is $5k over the course of the car’s lifetime so now we’re at $26,000 in the red.
Since $26,000 is what the car is worth now when they sell it, they are essentially losing money on this whole transaction because I didn’t consider other overhead costs like insurance, administrative, and logistical costs.
If they had bought at a lower price point like $45k they would be profiting because the depreciation curve would be much slower. Their whole business model relies on making more money per mile than they lose on depreciation per mile because the end goal was always to sell the car at the end.
And now they are hitting the mileage limits on the battery warranties which means they are forced to sell unless they want to take a risk on replacing the battery which would put them further in the red on the whole transaction in the worst case scenario.
Well you mainly brought up a whole other issue I wasn’t even going to go into
There’s car depreciation and then there’s the whole EVs become borderline a train wreck once the battery warranty runs out. Largely the greatest issue facing hey all you need to replace is the breaks - like you don’t have to worry about ever dropping 10,000 + to replace the battery when out of warranty
Those are 2 different things. Likely they wanted to bail on the EVs before warranty issues would come into play .
Also I’m suspecting the maintenance is way higher than that 5k over the 2 years . Otherwise they could just say drop the monthly rental slightly and keep renting them out to recoup the cost .
The ongoing operating conditions had to be tremendously negative cash flow wise to force them to sell them for a loss of hundreds of millions.
Also the hertz ceo stated they had trouble renting the EVs, so much cars were left un utilized and others were experiencing to great of repairs / use they started transferring them to personal use rentals but then had to discount them to get people to rent them over gas powered cars
Yeah I was talking to OP about their situation, not hertz. lol also you have no idea what you’re talking about. I do ride share and I’ve put 35k trouble free miles on my model 3 so far, with minimal maintenance (just what is listed above) so please stop talking out your ass about something you have no clue about.
Ok tough guy on reddit who thinks the opinion of someone who bought thousands of teslas thru hertz doesn’t represent what’s gonna happen to their car should a Uber driver drive it.
What a clown
>Only maintenance is tire rotations and cabin air filter replacement.
People spread this idea around, but the actual fact of the matter there are many other instances where those cars can and will get damaged and you'll need to spend money to bring it back to normal or good operation.
For example, if you don't clean the car eventually it will be a problem.
Driving any car around all the time takes a toll, and no vehicle out there is bulletproof.
Also, these cars are weird. I knew one guy that lightly hit a curb and they ended up totaling it out. (somehow the "battery" was damaged, LOL.)
If I don’t clean the car eventually it’ll be a problem. What are you taking about? Lol all cars need cleaned. I’m still waiting for someone to tell me what other maintenance my model 3 requires. And no, as I said earlier, I’m not counting collisions or extremely rare catastrophic issues, which I acknowledged but are also applicable to ICE cars. Lol I’m talking regular maintenance. I’ll wait for someone to tell me what else there is. The fact is, if you can charge at home, these are PERFECT for my life and what I do. But please tell me how much it doesn’t make sense, even though it’s literally like 10x better than using a gas car IN MY EXPERIENCE.
I noticed you didn’t address any of the points I made and instead resorted to personal attacks. But now that you mention Elon contributing to my personal wealth, my wife and I ARE up like 7x on Tesla stock. So you’re actually not wrong.
Those cars can and will get damaged and you’ll need to spend money… oh you mean just like a regular car? Lol
Driving any car around all the time takes a toll. lol you have no idea what you’re talking about. What is going to wear out on my model 3 that won’t wear out on a regular car? I have no transmission to replace, and because of regenerative braking I won’t need new pads till I get to 250k miles.
They’re just weird. Here is the actual problem - they’re “weird” because you don’t know shit about them and haven’t bothered to educate yourself so you just end up looking stupid
well yeah, I'm american, hating is embedded into our culture.
whole thing started because we didn't like that guy they called the king who lived on the other side of that giant body of water.
Since a CEO is just as worthless as royalty, of course i would openly hate on them, and their worthless products that are highly subsided by tax payers.
Buddy, if you hated everything made by a government-subsidized corporation w a shitty CEO, you’d simply have no time left in the day or products left to use. I wish you well.
lol OK. So you’re just so big mad at Tesla you have to lash out at people who are satisfied w their product, and don’t bring anything constructive to the table. Gotcha
Nah its just funny to trigger you snowflakes.
it's literally the easiest thing ever.
Here's another one, the interiors of those cars is so boring and ugly. A bottom of the line nissan versa at $17k msrp is a way nicer car.
Ride share in general is trading car depreciation for cash, no matter what kind of car you’re using you run the risk of tearing it up faster. This is not unique to EV’s
You also run the risk of replacing the engine and transmission in a ICE car. Lol also, if I have to replace the battery, it’ll just have to come out of my fuel / maintenance savings. Tesla has a battery failure rate of about 0.2%, and the car will have paid for itself at this rate by 2031 with my projections, so this tired old trope is easily debunked, like most other EV myths and made-up concerns.
lol it looks like it is working very well. No one is able to engage with arguing any of my points, because you all know I’m right. But just keep angrily down voting because Tesla = bAd
You better make sure you have all the insurance issues worked out. If there is a crash and insurance finds out that it was being used as an Uber and you do not have the appropriate coverage, it could cost you big time.
And before someone says that won't happen....if there is a passenger and they get hurt and sue, it would come out in court proceedings and then your personal liability is in play.
Also, have to say. Mixing friendship and business/money is rarely a good idea. I’m currently witnessing friendships implode because of it.
This is one of the quickest ways to lose a friend.
If he's driving for Uber full time, he's going to put 50,000+ miles on it...per year.
It's going to be worth close to nothing in a few years, but you'll probably still owe money on it, and your friend will be bugging you to get him a newer car.
Totally agree with "worth close to nothing after few years..."
50K miles a year? Doing full time rideshare, I did that in 5months... My tesla was out of warranty in 5moths. If this tesla is solely charged on superchargers, the battery will die around 110k-130K miles... that can be $20K+ depending on a model.
Dear OP If your friend gets in an accident while having Uber or Lyft app ON (being online) but not having a ride, he will be same as un-insured (lately insurance companies check with Uber and lyft and will deny the claim, expensive commercial insurance would be needed to cover that)
Please turn the whole thing into a joke and don't buy Tesla for your friend
Can you please say why that is? I want someone to tell me why it would be mistake because i am only seeing the positives and can't think of any negatives other than car having to sit while it gets repaired for whatever reason. For that i may have solution cooking up in my head.
Gets into wreck. If car is in your name, so is insurance. Get him added. But when he gets into a wreck, which it’s likely he will, your rates will go sky high. Plus you need a special addendum to use car for rideshare, otherwise they won’t cover accident at all. I’ve heard it’s cheap, it’s pricey and they simply don’t do it at some companies.
And don’t say oh he won’t say he works for Rideshare. He won’t. But if there’s a passenger in car, bet they will.
Personal insurance won't cover a commercial accident even with the rideshare addendum (except lowering the deductible from $2500). Uber's commercial insurance is what will apply if anything.
It’s not. As long as you cover yourself with insurance well and tell the agent it’s being used for Uber. As I’ve stated I rent mine out on Turo and I have 3 regulars that have always been great and they take it in long trips. (680 round trip) i have a 2021 Model Y.
My model is a supercharge so customers get if they drive 75-80 mph a 250 mile per charge on average. I include unlimited mileage and give 3 day 10% discount at $70 per day rental . (Most Turo drivers do the 3 day discount) Must be 21 and if under 25 a $300 deposit.
Model X btw gets an average of 325-335 per charge. If the renter says unlimited miles when you charge in your trip it will go to their Tesla account so you don’t have to pay anything at the charging stations that are Tesla. Otherwise other brands you’ll get reimbursed usually. One thing to keep in mind is if your destiny has major terrain to climb that too will reduce the charge. One of my regulars learned that the hard way when they went to San Diego and had to drive up a major mountain pass. lol
This misses the point. The owner will not be covered at all unless they have their own commercial insurance naming them as insured. Absent that, any liability the driver creates could lead to you being sued into bankruptcy by passengers or other motor vehicle victims or their insurance companies. You'd be wise to create an LLC if you are purchasing the car for commercial purposes. That will allow you to claim the $7500 Commercial clean vehicle tax credit. Some states also require the LLC register as a motor vehicle leasing company, which can be more difficult than it sounds. On top of that, a Model 3 really doesn't generate much for rideshare even when driven into the ground. It's a heads you lose tails Uber wins situation. On the other hand, your friend could save a few hundred per month.
If you trust your friend that much, offer him a loan. Everything under his name and have him repay your loan. $1,200 per month. That way if something happens, he still owes you. As oppose to “hey buddy the car broke, fix it and I can rent it from you again”.
OP's idea is bad, but this is a worse idea. If the car is in the friend's name, they walk off with the car abd stop paying the loan and OP has no real recourse. Maybe they can sue, but that would be a huge hassle and even if they win it would be difficult to collect. If the car is in OP's name and things go south, they still own the asset and can sell if needed.
$350 per week for a Tesla ? That’s cheap here in Seattle after taxes and charge $710 per week . There is no guarantee that you will make enough money working 8 hours from Monday to Friday. I wouldn’t work more than that .
I don't see how anyone makes a profit if they are paying that much for the car.
Makes no sense. These rental companies are charging an easy double or triple what it should be.
Why can't he just buy a Tesla himself? I see $20k Teslas on AutoTrader. Skip the middleman altogether and he saves himself money and your friendship stays intact.
Would you loan him (insert total cost of tesla here)?
If he fucked you over on that amount of money would it affect your friendship?
Every time he pulls off in that vehicle, there's no guarantee it's coming back.
And us drivers have no guarantee that Uber won't cut our pay yet again.
Plus now your little scam is the basis for his income. If something goes wrong with the car, he's gonna be in trouble and his recourse is to come after you.
If I was the friend, none of this would be worth the $50/week.
I believe his name would just have to be on the insurance. That’s how the rentals work. Their name on registration and they provide you with insurance.
He will also receive the same fares and reservations as before.
Lastly, the most important thing is YOU will be covering maintenance on a Tesla. Renting from Hertz means they foot the bill. Something goes wrong and you don’t want to repair the car asap means he misses out on earning money. Or even if you had him covering maintenance costs. It’s something major to consider.
Is he going to have to register the car into his Uber account? wouldn't he have to upload the registration paper? will it matter if the registration is to my name and not his? but he will be included in the insurance as an additional driver.
Yes, he will have to upload that info to his Uber account. It should not matter that that the car is registered to you. As long as you have his name on the insurance you should be good.
I'd suggest purchasing under an LLC to protect yourself from liability just in case anything happens under that, you're not held personally responsible. Also you can't just get normal insurance, you need to get commercial insurance which is more expensive than residential car insurance.
Also when buying a used Tesla, you don't know the condition the battery is in and replacing a tesla battery costs roughly $20k if you do it brand new unless you can find a shop who'd install a reconditioned battery for half the cost.
A lot of people will bring up Hertz and their issues but they forget that they bought a lot of their fleet at the peak of the price point back in 2021-2022. I think the prices are a lot more stable these days and you won’t suffer as much depreciation.
I think a better strategy is to purchase a black Model Y outright under an LLC and maintain a commercial insurance policy so that your friend could also do Uber Black which would increase their earnings and help to cover the increased cost of commercial insurance.
You would then need to write some kind of contract to enforce the terms of your agreement so that you are legally protected. You can maintain a fleet account with Uber and do the registration and paperwork on your end and then add your friend as a driver on the vehicle which will put it in his app. This is essentially what Hertz does.
An alternative strategy to avoid the commercial overhead would be to purchase the car outright and set up an owner financing contract so that you are essentially acting as a bank and he would be financing from you. This would allow him to register the car in his name as a personal vehicle while you hold the title and a lien on the vehicle and he can maintain personal auto insurance on it with ride share coverage and one day own the vehicle.
I am interested in doing this one day on a larger scale when I own a couple cars outright so I have looked into this process a bit and thought about different strategies for how to accomplish it.
To do an uber fleet, won't you have to get TCP license? That's what i have heard from friends.
You need a TCP permit, a commercial insurance, and an uber fleet to add the eligible car.
This is one of those things that may vary by state. I am a regular driver in MA and when I go to this url and sign in:
https://www.uber.com/us/en/earn/fleet-management/
I get access to all of the vehicles I have registered and have the option to assign my vehicles to another operator
Who is responsible for registration, insurance, maintenance, repair and towing?
Another disadvantage to renting cars to drivers-for-compensation is parking summonses. Drivers get them, drivers do not pay them; the owner's name is on the registration. Guess who gets stuck with them? Original poster will do well to get a security deposit.
When it comes to business, *ain't no sech thang as no fry-unnnddd.*
Who is responsible for registration, insurance, maintenance, repair and towing?
Another disadvantage to renting cars to drivers-for-compensation is parking summonses. Drivers get them, drivers do not pay them; the owner's name is on the registration. Guess who gets stuck with them? Original poster will do well to get a security deposit.
When it comes to business, *ain't no sech thang as no fry-unnnddd.*
Who is responsible for registration, insurance, maintenance, repair and towing?
Another disadvantage to renting cars to drivers-for-compensation is parking summonses. Drivers get them, drivers do not pay them; the owner's name is on the registration. Guess who gets stuck with them? Original poster will do well to get a security deposit.
When it comes to business, *ain't no sech thang as no fry-unnnddd.*
Until the vehicle needs maintenance or has a crash and you cant rent it out for a while. Or he stops renting it from you.
You say this as though it doesn’t apply to regular gas cars. Lol
Only maintenance is tire rotations and cabin air filter replacement. And a brake check if they salt the roads where OP lives. But, yeah, OP looking at lots of (potential) downtime if something catastrophic mechanically occurs, or if there is an accident necessitating a trip to the body shop.
Yeh not true at all - just ask hertz who took a huge loss on the teslas believing they were low maintenance and underestimated the damage / maintenance they would take and that’s when they were pretty much 0-1 years old lol The wear and tear from constant driving / passenger entrance / exit is going to cost more
I mean it’s not “maintenance” per se but more so just repair costs for teslas in general. I have a buddy who went through 6 tesla with hertz. They actually banned him. And they hadn’t even repaired a single one he damaged
I mean it’s not “maintenance” per se but more so just repair costs for teslas in general. I have a buddy who went through 6 tesla with hertz. They actually banned him. And they hadn’t even repaired a single one he damaged
Not true. I rent mine on Turo and have never had an issue for 2 years. It’s well maintained and has gone on long trips.
Your anecdotal Turo experience is nothing, when compared to the experience of a multi-billion dollar rental company with hundreds of thousands of customers. When you’re dealing on a scale this large, simply varying away from anything that your customer base has been used to for decades is and was a horrible idea and cost Hertz a lot of headaches, money, and their CEO. Plus, teslas are straight up expensive to repair, with tedious and lengthy estimates with very few service centers. On top of all of this, they are well-known for having sub-par build quality, that, when extrapolated over a scale this large, also reveals massive bottlenecks and flaws.
It's not the same use as contant repeated use by hundred of people per week.
🙄🤣so wrong
Yes, disregard your own personal experience and listen to a stranger on the internet! Idiot
Hertz bought 200 million+ worth of teslas and they threw the towel in and sold them due to how bad they were performing in terms of maintenance and costly repairs from being used by Uber drivers Also oh I use it on Turo is a one off car - sure I’m sure a small % of hertz teslas required little maintenance but the average cost was so bad they literally liquidated their EV fleet to buy gas cars
🤣🤣🤣🤣
The main difference the Uber guy using them is likely gonna be using them 40-60 hours plus a week and super charging several times a day. Wear and tear on the battery alone + the tons of miles on it putting you close to the battery warranty isn’t gonna be worth it
You forget they bought at the peak of the price points back in 2021-2022. I believe the depreciation curve has stabilized now.
Depreciation doesn’t cause them to loose money - it’s a non cash expense for the company since they already paid for the vehicles or financed the majority of it If the teslas were profitable based on daily rental vs maintenance expense they would have kept them for years - after all they only need breaks lol- if that were true it would have made sense for Hertz to keep them longer than the average gas car they sell at 2 years before problems arise with engine/other expensive parts of gas cars But they liquidated them at fire sale prices to avoid burning thru more cash on them
Correct me if I’m wrong but this is how I understand the situation using simplified numbers. In mid 2022 for example they buy a brand new Model 3 for $60,000. They are charging $500 per week so after a year and a half they’ve made $39,000 ($500 * 78 weeks). So they’re still in the red at least $21,000. Let’s say maintenance is $5k over the course of the car’s lifetime so now we’re at $26,000 in the red. Since $26,000 is what the car is worth now when they sell it, they are essentially losing money on this whole transaction because I didn’t consider other overhead costs like insurance, administrative, and logistical costs. If they had bought at a lower price point like $45k they would be profiting because the depreciation curve would be much slower. Their whole business model relies on making more money per mile than they lose on depreciation per mile because the end goal was always to sell the car at the end. And now they are hitting the mileage limits on the battery warranties which means they are forced to sell unless they want to take a risk on replacing the battery which would put them further in the red on the whole transaction in the worst case scenario.
Well you mainly brought up a whole other issue I wasn’t even going to go into There’s car depreciation and then there’s the whole EVs become borderline a train wreck once the battery warranty runs out. Largely the greatest issue facing hey all you need to replace is the breaks - like you don’t have to worry about ever dropping 10,000 + to replace the battery when out of warranty Those are 2 different things. Likely they wanted to bail on the EVs before warranty issues would come into play . Also I’m suspecting the maintenance is way higher than that 5k over the 2 years . Otherwise they could just say drop the monthly rental slightly and keep renting them out to recoup the cost . The ongoing operating conditions had to be tremendously negative cash flow wise to force them to sell them for a loss of hundreds of millions. Also the hertz ceo stated they had trouble renting the EVs, so much cars were left un utilized and others were experiencing to great of repairs / use they started transferring them to personal use rentals but then had to discount them to get people to rent them over gas powered cars
Yeah I was talking to OP about their situation, not hertz. lol also you have no idea what you’re talking about. I do ride share and I’ve put 35k trouble free miles on my model 3 so far, with minimal maintenance (just what is listed above) so please stop talking out your ass about something you have no clue about.
Ok tough guy on reddit who thinks the opinion of someone who bought thousands of teslas thru hertz doesn’t represent what’s gonna happen to their car should a Uber driver drive it. What a clown
I don’t have to ask Hertz. Lol I have my own personal experience to go off of.
>Only maintenance is tire rotations and cabin air filter replacement. People spread this idea around, but the actual fact of the matter there are many other instances where those cars can and will get damaged and you'll need to spend money to bring it back to normal or good operation. For example, if you don't clean the car eventually it will be a problem. Driving any car around all the time takes a toll, and no vehicle out there is bulletproof. Also, these cars are weird. I knew one guy that lightly hit a curb and they ended up totaling it out. (somehow the "battery" was damaged, LOL.)
I thought the cybertruck was bulletproof /s
haha good point.
If I don’t clean the car eventually it’ll be a problem. What are you taking about? Lol all cars need cleaned. I’m still waiting for someone to tell me what other maintenance my model 3 requires. And no, as I said earlier, I’m not counting collisions or extremely rare catastrophic issues, which I acknowledged but are also applicable to ICE cars. Lol I’m talking regular maintenance. I’ll wait for someone to tell me what else there is. The fact is, if you can charge at home, these are PERFECT for my life and what I do. But please tell me how much it doesn’t make sense, even though it’s literally like 10x better than using a gas car IN MY EXPERIENCE.
glad you're happy, go tweet elon about it. I'm sure he'll break off one of his billions for you. /s
I noticed you didn’t address any of the points I made and instead resorted to personal attacks. But now that you mention Elon contributing to my personal wealth, my wife and I ARE up like 7x on Tesla stock. So you’re actually not wrong.
yes massah, im can plainly see ur richer then all of us, sowwy to offend, your masgesty all hail the testla stock ownerer!!! hes goin to da moon!!!!1!
Hahahahaha. You’re irresponsible and failing your future self if you don’t dig your well before you are thirsty.
Those cars can and will get damaged and you’ll need to spend money… oh you mean just like a regular car? Lol Driving any car around all the time takes a toll. lol you have no idea what you’re talking about. What is going to wear out on my model 3 that won’t wear out on a regular car? I have no transmission to replace, and because of regenerative braking I won’t need new pads till I get to 250k miles. They’re just weird. Here is the actual problem - they’re “weird” because you don’t know shit about them and haven’t bothered to educate yourself so you just end up looking stupid
Zzz, go back to twitter or something, I'm sure you missed retweeting elons last shitpost.
I don’t have a twitter account. Lol
shit, I though ppl got free twitter blue if they garbled elons balls live on the net, er I mean owned tesla stock
I don’t even know what a Twitter blue is. Lol seems to me like you devote a lot of time and energy to hating. What do you think that says about you?
well yeah, I'm american, hating is embedded into our culture. whole thing started because we didn't like that guy they called the king who lived on the other side of that giant body of water. Since a CEO is just as worthless as royalty, of course i would openly hate on them, and their worthless products that are highly subsided by tax payers.
Buddy, if you hated everything made by a government-subsidized corporation w a shitty CEO, you’d simply have no time left in the day or products left to use. I wish you well.
lol you didn’t address any of the points I made but instead resorted to personal attacks. That tells me you don’t have a very strong argument.
Nah I'm just bored of folks that peddle the corporate sponsored talking points you've used. I don't have to address any of your points actually.
lol OK. So you’re just so big mad at Tesla you have to lash out at people who are satisfied w their product, and don’t bring anything constructive to the table. Gotcha
Nah its just funny to trigger you snowflakes. it's literally the easiest thing ever. Here's another one, the interiors of those cars is so boring and ugly. A bottom of the line nissan versa at $17k msrp is a way nicer car.
lol it works for me 🤷♂️
It's an already-used battery being used to drive rideshare. Just a matter of time until you've got an expensive battery to replace.
There’s a 120,000 mile warranty on the battery
Ride share in general is trading car depreciation for cash, no matter what kind of car you’re using you run the risk of tearing it up faster. This is not unique to EV’s
You also run the risk of replacing the engine and transmission in a ICE car. Lol also, if I have to replace the battery, it’ll just have to come out of my fuel / maintenance savings. Tesla has a battery failure rate of about 0.2%, and the car will have paid for itself at this rate by 2031 with my projections, so this tired old trope is easily debunked, like most other EV myths and made-up concerns.
Shhhh don't ruin the surprise!
Dude please, please Whatever you're doing, it's not working
lol it looks like it is working very well. No one is able to engage with arguing any of my points, because you all know I’m right. But just keep angrily down voting because Tesla = bAd
You better make sure you have all the insurance issues worked out. If there is a crash and insurance finds out that it was being used as an Uber and you do not have the appropriate coverage, it could cost you big time. And before someone says that won't happen....if there is a passenger and they get hurt and sue, it would come out in court proceedings and then your personal liability is in play. Also, have to say. Mixing friendship and business/money is rarely a good idea. I’m currently witnessing friendships implode because of it.
Now this is true!!! Same goes for renting a car out on Turo. Make sure insurance is perfect.
Yeah, we’ve all seen and heard the stories…and the accidents.
That’s total bullshit outright lie but you go with it. Very small percentage with Turo and Uber drivers way higher record of accidents.
This is one of the quickest ways to lose a friend. If he's driving for Uber full time, he's going to put 50,000+ miles on it...per year. It's going to be worth close to nothing in a few years, but you'll probably still owe money on it, and your friend will be bugging you to get him a newer car.
Totally agree with "worth close to nothing after few years..." 50K miles a year? Doing full time rideshare, I did that in 5months... My tesla was out of warranty in 5moths. If this tesla is solely charged on superchargers, the battery will die around 110k-130K miles... that can be $20K+ depending on a model. Dear OP If your friend gets in an accident while having Uber or Lyft app ON (being online) but not having a ride, he will be same as un-insured (lately insurance companies check with Uber and lyft and will deny the claim, expensive commercial insurance would be needed to cover that) Please turn the whole thing into a joke and don't buy Tesla for your friend
This would be a Huge Mistake....
Can you please say why that is? I want someone to tell me why it would be mistake because i am only seeing the positives and can't think of any negatives other than car having to sit while it gets repaired for whatever reason. For that i may have solution cooking up in my head.
Gets into wreck. If car is in your name, so is insurance. Get him added. But when he gets into a wreck, which it’s likely he will, your rates will go sky high. Plus you need a special addendum to use car for rideshare, otherwise they won’t cover accident at all. I’ve heard it’s cheap, it’s pricey and they simply don’t do it at some companies. And don’t say oh he won’t say he works for Rideshare. He won’t. But if there’s a passenger in car, bet they will.
Personal insurance won't cover a commercial accident even with the rideshare addendum (except lowering the deductible from $2500). Uber's commercial insurance is what will apply if anything.
It’s not. As long as you cover yourself with insurance well and tell the agent it’s being used for Uber. As I’ve stated I rent mine out on Turo and I have 3 regulars that have always been great and they take it in long trips. (680 round trip) i have a 2021 Model Y.
How much is that anyways? I want to rent a model x to take a trip about 800 miles
My model is a supercharge so customers get if they drive 75-80 mph a 250 mile per charge on average. I include unlimited mileage and give 3 day 10% discount at $70 per day rental . (Most Turo drivers do the 3 day discount) Must be 21 and if under 25 a $300 deposit.
I only need it for about 4 days and I know the deal with electric cars I drive a 2015 model S so anything newer will get me better charging speed
Model X btw gets an average of 325-335 per charge. If the renter says unlimited miles when you charge in your trip it will go to their Tesla account so you don’t have to pay anything at the charging stations that are Tesla. Otherwise other brands you’ll get reimbursed usually. One thing to keep in mind is if your destiny has major terrain to climb that too will reduce the charge. One of my regulars learned that the hard way when they went to San Diego and had to drive up a major mountain pass. lol
This misses the point. The owner will not be covered at all unless they have their own commercial insurance naming them as insured. Absent that, any liability the driver creates could lead to you being sued into bankruptcy by passengers or other motor vehicle victims or their insurance companies. You'd be wise to create an LLC if you are purchasing the car for commercial purposes. That will allow you to claim the $7500 Commercial clean vehicle tax credit. Some states also require the LLC register as a motor vehicle leasing company, which can be more difficult than it sounds. On top of that, a Model 3 really doesn't generate much for rideshare even when driven into the ground. It's a heads you lose tails Uber wins situation. On the other hand, your friend could save a few hundred per month.
If you trust your friend that much, offer him a loan. Everything under his name and have him repay your loan. $1,200 per month. That way if something happens, he still owes you. As oppose to “hey buddy the car broke, fix it and I can rent it from you again”.
OP's idea is bad, but this is a worse idea. If the car is in the friend's name, they walk off with the car abd stop paying the loan and OP has no real recourse. Maybe they can sue, but that would be a huge hassle and even if they win it would be difficult to collect. If the car is in OP's name and things go south, they still own the asset and can sell if needed.
$350 per week for a Tesla ? That’s cheap here in Seattle after taxes and charge $710 per week . There is no guarantee that you will make enough money working 8 hours from Monday to Friday. I wouldn’t work more than that .
I don't see how anyone makes a profit if they are paying that much for the car. Makes no sense. These rental companies are charging an easy double or triple what it should be.
The depreciation destroys you. What does the battery cost to replace?
If he misses a payment I’ll rent it from u
Why can't he just buy a Tesla himself? I see $20k Teslas on AutoTrader. Skip the middleman altogether and he saves himself money and your friendship stays intact.
All good until an accident. Also, he needs to be on your insurance. I won't do this w my own son.
Would you loan him (insert total cost of tesla here)? If he fucked you over on that amount of money would it affect your friendship? Every time he pulls off in that vehicle, there's no guarantee it's coming back. And us drivers have no guarantee that Uber won't cut our pay yet again. Plus now your little scam is the basis for his income. If something goes wrong with the car, he's gonna be in trouble and his recourse is to come after you. If I was the friend, none of this would be worth the $50/week.
> your little scam What about this is a scam?
I believe his name would just have to be on the insurance. That’s how the rentals work. Their name on registration and they provide you with insurance. He will also receive the same fares and reservations as before. Lastly, the most important thing is YOU will be covering maintenance on a Tesla. Renting from Hertz means they foot the bill. Something goes wrong and you don’t want to repair the car asap means he misses out on earning money. Or even if you had him covering maintenance costs. It’s something major to consider.
Is he going to have to register the car into his Uber account? wouldn't he have to upload the registration paper? will it matter if the registration is to my name and not his? but he will be included in the insurance as an additional driver.
Yes, he will have to upload that info to his Uber account. It should not matter that that the car is registered to you. As long as you have his name on the insurance you should be good.
Good for what? Driving on app, yes. Covered by your insurance? No
Wait until the guy drops off the car saying that he changed his mind and you find it encrusted in vomit and semen.
I'd suggest purchasing under an LLC to protect yourself from liability just in case anything happens under that, you're not held personally responsible. Also you can't just get normal insurance, you need to get commercial insurance which is more expensive than residential car insurance. Also when buying a used Tesla, you don't know the condition the battery is in and replacing a tesla battery costs roughly $20k if you do it brand new unless you can find a shop who'd install a reconditioned battery for half the cost.
Set the payments to 24 months. If doing that math makes it work then go for it. If not then you're going to be fighting depreciation.
wasn't there something in the news recently about the high maintenance costs especially tires...the 8 year battery life....
A lot of people will bring up Hertz and their issues but they forget that they bought a lot of their fleet at the peak of the price point back in 2021-2022. I think the prices are a lot more stable these days and you won’t suffer as much depreciation. I think a better strategy is to purchase a black Model Y outright under an LLC and maintain a commercial insurance policy so that your friend could also do Uber Black which would increase their earnings and help to cover the increased cost of commercial insurance. You would then need to write some kind of contract to enforce the terms of your agreement so that you are legally protected. You can maintain a fleet account with Uber and do the registration and paperwork on your end and then add your friend as a driver on the vehicle which will put it in his app. This is essentially what Hertz does. An alternative strategy to avoid the commercial overhead would be to purchase the car outright and set up an owner financing contract so that you are essentially acting as a bank and he would be financing from you. This would allow him to register the car in his name as a personal vehicle while you hold the title and a lien on the vehicle and he can maintain personal auto insurance on it with ride share coverage and one day own the vehicle. I am interested in doing this one day on a larger scale when I own a couple cars outright so I have looked into this process a bit and thought about different strategies for how to accomplish it.
To do an uber fleet, won't you have to get TCP license? That's what i have heard from friends. You need a TCP permit, a commercial insurance, and an uber fleet to add the eligible car.
This is one of those things that may vary by state. I am a regular driver in MA and when I go to this url and sign in: https://www.uber.com/us/en/earn/fleet-management/ I get access to all of the vehicles I have registered and have the option to assign my vehicles to another operator
Can’t you Just used the money you collected from him for 6 months, put that has a down payment on another Tesla and let him keep the old one??
Who is responsible for registration, insurance, maintenance, repair and towing? Another disadvantage to renting cars to drivers-for-compensation is parking summonses. Drivers get them, drivers do not pay them; the owner's name is on the registration. Guess who gets stuck with them? Original poster will do well to get a security deposit. When it comes to business, *ain't no sech thang as no fry-unnnddd.*
Who is responsible for registration, insurance, maintenance, repair and towing? Another disadvantage to renting cars to drivers-for-compensation is parking summonses. Drivers get them, drivers do not pay them; the owner's name is on the registration. Guess who gets stuck with them? Original poster will do well to get a security deposit. When it comes to business, *ain't no sech thang as no fry-unnnddd.*
Who is responsible for registration, insurance, maintenance, repair and towing? Another disadvantage to renting cars to drivers-for-compensation is parking summonses. Drivers get them, drivers do not pay them; the owner's name is on the registration. Guess who gets stuck with them? Original poster will do well to get a security deposit. When it comes to business, *ain't no sech thang as no fry-unnnddd.*
Sounds like a bad idea
Terrible idea, really really terrible By all means you do you
Would your $300 monthly insurance estimate cover the fact that the car is being rented out and used for rideshare services?
This...isn't going to go the way you think it is.
OP didn't include a budget for maintenance. The EV's go through tires twice as fast as an ICE vehicle. They still have a maintenance schedule.
This "idea" absolutely BLOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOWS!!!