Can You Use A Leased Car for Uber?

Dreaming of joining the ranks of Uber drivers but unsure if you can use a leased car? Look no further for answers.

Using a leased car for Uber or other ride-sharing services like Uber may require approval from the leasing company and the ride-sharing platform, as lease agreements often have restrictions on commercial use. It is crucial to review your lease terms and consult with the ride-sharing platform to ensure compliance.

In this article, we delve into the world of ride-sharing and leasing agreements, uncovering the requirements and considerations for using a leased car on platforms like Uber.

What Vehicles Does Uber Allow?

Uber will accept a wide range of different styles of vehicles, including small gas-powered cars, electric cars, minivans, large passenger vans, shuttle buses, trucks, and more.

However, they do have specific requirements that must be met in order for that vehicle to be accepted!

1. The vehicle should be newer than 2006 and have a clean title.
2. Leased vehicles are perfectly acceptable, but the vehicle cannot be a rebuilt or reconstructed vehicle.
3. Salvaged vehicles are also not accepted, even if they are titled and street-legal.

While leased vehicles are accepted, rentals are not. You must be the registered owner of the vehicle you are using.

If someone else in your family owns the vehicle, Uber will still accept it as a valid vehicle as long as your name is listed as a driver on the insurance.

The vehicle must be in sound condition, both physically and mechanically. All door latches must be in good working order, glass cannot be cracked or missing, and rust and dents should not be present.

The interior should be clean and organized, with working seat belts for all seats.

If your vehicle is in good mechanical order but has some cosmetic issues, you may be declined to drive for Uber’s passenger service but can still be hired on as an Uber Eats driver.

Since you will not be shuttling passengers around, the interior condition of the vehicle is less of a concern to Uber.

Pros and Cons of Using a Leased Vehicle for Uber

Pros

• You can make enough money from Uber to pay the lease on your vehicle.
• Leasing a vehicle allows you to get a desirable vehicle for passengers to want.
• Uber drivers take home roughly $25 per hour.
• Uber’s rideshare rates are highly competitive, and raises are not uncommon.
• You can drive for Uber until your lease is paid, then choose to stop working for them.

Cons

• Your lease warranty may be voided when used as a rideshare vehicle.
• You may drive more than your lease agreement allows. Be sure to check!
• Additional driving will require more maintenance and oil changes.

Pay Attention to your Lease Agreement

Some lease agreements may have limitations on how many miles you can put on a vehicle throughout the year while the vehicle is being leased.

In many cases, this will be around 10,000 to 12,000 miles annually. Driving for Uber or Lyft on a regular basis may end up putting you over this limit.

In the event that you do go over your lease mileage limit, you may be charged a fee by the lessor, which can add up to roughly 25 cents per extra mile.

If you will be doing a lot of long-distance shuttlings, such as to and from an airport or amusement park, this extra mileage may end up costing you more than Uber or Lyft will be paying.

If your lease agreement does not have a mileage limit, you may still find that driving for Uber or Lyft is not as lucrative as you had hoped.

With more mileage comes more required maintenance, oil changes, tire rotations, and other repairs along the way. 

While Uber and Lyft do pay a competitive rate when it comes to rideshare companies, you will need to weigh the pros and cons yourself when it comes.

These considerations should include not just your lease payment but also insurance costs, maintenance and repair costs, mileage limitations, and other factors to see if driving for Uber or Lyft with a leased vehicle is right for you.

How to Become an Uber Driver

Uber has a number of different requirements a driver must meet before they can become a driver for the company.

This is to keep not only the passengers safe and give them peace of mind, but also so the company itself is covered when it comes to legal obligations.

Safe drivers with a good driving history are most desired for Uber.

The company wants to know you are not reckless, will obey all traffic expectations, and that you have a sound knowledge of driving education since you will be responsible for the safety of passengers.

If you can pass all of the requirements, you will be able to drive for Uber. While the company doesn’t have openings in every area, they do advertise the need for additional drivers on occasion.

These can usually be found on their website or social media posts such as on Facebook or Twitter.

When Uber adds additional services or expands their existing services into new areas, there will be an immediate and large need for new drivers. If you find an opening in your area, you should first decide on the type of driving for Uber you would like to do.

Uber normally provides a passenger service for people who may not have a vehicle or who need a ride home from a bar, club, or airport. You can also sign up to drive for Uber Eats, which is a food delivery service that does not offer rides to passengers.

You will instead drive to a restaurant or store, pick up a food order, and drive it back to the customer’s home.

Some drivers also choose to do both. However, keep in mind driving passengers can have its own set of challenges.

Your vehicle will need to be large enough to handle passengers safely and comfortably, with working seatbelts, door locks, and door windows.

You may also have to deal with large groups, large amounts of luggage, or rowdy passengers as well.

What Requirements Does Uber Have for Drivers?

When Uber has openings for new drivers, you will have to meet a range of requirements in order to be considered for employment.

These requirements are quite reasonable, in most cases, and will not only work to keep you safe but will also ensure the safety of your passengers and other motorists on the road around you.

To start, you must have at least one year of excellent driving experience under your belt if you are over the age of 23.

If you are under the age of 23, Uber will require you to have at least three years of safe driving experience.

Obviously, you will need a valid driver’s license in the state in which you are applying for an Uber position. This license should be valid for driving personal vehicles, as a CDL or Passenger license is not required.

Having a valid driver’s license will also require a current proof of residency, which clearly shows Uber your city, state, or province. In addition, your vehicle will need current vehicle insurance.

Liability insurance is accepted in some cases, but Uber recommends full coverage insurance, especially when using a leased vehicle.

Your vehicle should be large enough to handle multiple passengers.

• Two-door vehicles are not accepted, and four doors are required.
• Minivans, SUVs, shuttle vans, limousines, and other similar vehicles can be used to drive for Uber. 

If you found this article helpful, make sure to take a look at some of my other related articles below!

• Can You Put a Car Seat in an Uber?