5 Cars That Cost Uber or Lyft Drivers Money

Choosing the right car for your gig as an Uber or Lyft driver makes a huge difference to your profit margin. Get the wrong set of wheels, and you’re looking at a money pit that guzzles more funds than it generates. The hidden costs can turn some popular vehicles into financial burdens on wheels.

If you’re on the hunt for the perfect ride-sharing car, beware of the vehicles that come with high maintenance costs, poor fuel efficiency or a steep depreciation curve. While some models are favorites among drivers for their reliability and cost-effectiveness, others are notorious for the exact opposite.

Its important to consider expenses associated with driving for a rideshare company, as they will cut into the profit you make. Full-time rideshare drivers put a ton of extra mileage on their cars, on the order of 30,000 to 45,000 extra miles per year. This means that you will need maintenance sooner and spend more on fuel than a standard driver. 

These are the main expenses rideshare drivers can expect:

• Fuel
• Insurance
• Maintenance & Repairs
• Depreciation

Before we get into vehicles that will lose you money if you are an Uber of Lyft driver, let’s take a look at one that would be considered a good rideshare vehicle. The Toyota Corolla is a low-cost and reliable vehicle that depreciates slowly and has minimal maintenance and repair costs. 

With a great fuel economy of 35 MPG, you won’t be watching your profits drain into your gas tank. Insurance also isn’t too spendy, averaging around a reasonable $800 per year. 

• MRSP: $23,145
• Fuel Economy: 35 MPG
• Insurance: $760-$860/yr
• Maintenance & Repairs: $362/yr
• Depreciation: 21% over 5 years

Using the Toyota Corolla as an example of a good choice, let’s compare these expenses with the worst rideshare cars out there.

The Cadillac Escalade Extended Stretch Vehicle (ESV) is a spacious and luxurious vehicle, but that comes with a cost — several, actually. You’ll be pouring money into the tank instead of your bank account, because the Escalade gets only 16 miles per gallon and requires premium gas.

This beast depreciates by 41% which is no small number on such a high sticker price. Sure, you can get paid more on the apps for offering an XL ride, but you’ll be paying XL bills too.

• MSRP: $84,190 
• Fuel Economy: 16 MPG
• Insurance: $850-$1000/yr
• Maintenance & Repairs: $1,127/yr
• Depreciation: 41% over 5 years

This zippy, eco-friendly car is very trendy right now. Despite the costs associated with an at home charging station, you’ll save on fuel compared to most gas vehicles. 

However, beware of pricey insurance and costly (and frequent) repairs. The Tesla Model S is a high-investment vehicle that might break the bank as much as it breaks down. 

• MSRP: $74,380
• Fuel Economy: 122 MPGe
• Insurance: $960-$1100/yr
• Maintenance & Repairs: $1047/yr
• Depreciation: 35% over 5 years 

This luxury sedan is a plug-in hybrid boasting an excellent 62 MPGe. You might be saving at the pump, but you’re still going to be paying a premium for the luxury badge. Plus, this vehicle has some of the worst depreciation on the market, losing nearly half of its value within five years of purchase. 

While fairly reliable, these German-made vehicles require expensive upkeep. When you need repairs, you’ll be opening your wallet wide, since not every mechanic can work on a BMW and parts must be shipped internationally. 

• MSRP: $59,695
• Fuel Economy: 62 MPGe
• Insurance: $850-$1,000 year
• Maintenance & Repairs: $968/year
• Depreciation: 45% over 5 years

Besides the sticker shock of a nearly six-figure price tag, the Ram 1500 TRX will really start to cost you at the fuel pump. This truck has some of the worst gas mileage on the market, getting only 12 miles per gallon. That means your annual fuel costs will be $7,500 more than average. 

On the other hand, the Ram 1500 has the highest reliability rating of full-size trucks, leaving it with average maintenance and repair costs. Depreciation and insurance are also fairly average. 

• MSRP: $98,335
• Fuel Economy: 12 MPG
• Insurance: $750 – $850/yr
• Maintenance & Repairs: $691/yr
• Depreciation: 31% over 5 years

This popular off-roader will unfortunately require you to spend a lot of time off the road… getting repairs done in the shop. While maintenance costs are average for the American-made vehicle, time is money. So, it will also cost you to have your Jeep in the shop when you could be picking up passengers.

Repair Pal ranks the Wrangler 25 out of 26 for compact SUVs when it comes to reliability. That means you have 24 better options than the Jeep when it comes to choosing an affordable rideshare car.

• MSRP: $32,990
• Fuel Economy: 21 MPG
• Insurance: $580-$670/yr
• Maintenance & Repairs: $694/yr
• Depreciation: 22% over 5 years

_{Disclaimer: Photos are representational and may not depict the specific model mentioned.}