Honest opinion is this worth a shot or is the $$ hit too big

[LyftupX]

Keeping it short I've noted my scenario a few times.

I do rideshare driving, currently last 2 years in lower level car netting $1.52 per mile for every mile driven including dead (unpaid) traveling for next pickup.

Very part time 8 days a month $2k consistent over that time period, several months with increased days $4k...best week $1500.
2 good friends doing $6-9k monthly more full time than me but this market has plenty of business.

I have more time on my hands, we are coming into a lump sum due to buyback. I enjoy driving, wife on her own wants a nicer car....her payment alone if she bought something I would not use on rideshare I'd estimate @ $700 minimum.

I have decent size tax bill with part time driving may be close to $10 k even at that level because I currently use mileage method on older paid off car.

So am I crazy to think buy 100d model X and literally pay for most of the car driving? @50k miles if I just manage what I've done on lower levels that's $75k (back out takes so little less) of the car paid off. We have a luxury market here as well so I anticipate that amount going up slightly.
I won't have the X out after 11pm , I will use my older car for drunk after hours crowds. I can Sec 179 and depreciate the car. Tesla says they have heard nothing about warranty denial with several X drivers in the area. I have rideshare coverage via insurance,

I can pretty much pay for the car doing my gig and save , wife keeps her $700 and enjoys the car as well.
Year one I do 80-90% business use for huge writeoff, drop it down as the car note gets paid down to 60%business personal use. I anticipate 18-20k miles per year on the car maybe more . Supercharger is 30 miles away for days I want to put in a good session I can fill up and catch a paid ride out of the next closest are,

Every business has risks, people put up capital to run a business and things can happen, Uber or Lyft can go under but can anyone else see a huge flaw in my plan? Or can someone nudge me and say go do it....

 

[ThisIsTrue]

Frankly, it sounds like a no-brainer.

 

[LyftupX]

Wrong forum I've asked to delete ,thanks.

 

[LyftupX]

Frankly, it sounds like a no-brainer.

Since the thread is still here thanks for the +1.

I popped out last night and did $2 per mile in a regular class vehicle. Quick, easy and fun.

On a spreadsheet I made it much easier by plugging $600 per a month my wife would pay for a car anyway ... that put me at 580 (an easy 2-3 good driving days) miles per month in the Tesla to cover the payment on my side. The rest of the miles would be in addition, and just making sure I hit business threshold use goals. I would attack the Tesla and pay it down in 4-5 years.

I guess I just wonder if some would trade 50k Tesla miles and depreciation for $65-70k ... they could make from it. And that's a low end estimate on my part. I very well. Plus get $1.75 per mile that's $88k for 50k car miles.

 

[owen.shift]

If you decide to do it, you can get an inventory Model X during the end-of-quarter sales push next month at a hefty discount. In the meantime, learn how to read Tesla Inventory Search; and remember to give those guys your referral

 

[LyftupX]

I've looked at some inventory models and important in rideshare is the 7 seat option.
The new setup looks better for rideshare use and the Sec 179 and bonus depreciation sweeten the deal for a new 100D version.

Thanks for the feedback.

 

[LyftupX]

I forgot to add that one of my last criteria was for the vehicle to fit in the garage.
It just so happened I have a Dodge Max Caravan as a rental while a vehicle is in the shop.

It pretty much fits so I think that's covered. I don't think there will be any opening of the Falcon Wing doors however.

 

[djplong]

Is there any way to reasonably estimate how much one can earn with ridesharing in a given geographical area?

I have 2 Model 3 reservations. Right now, one of them will be cancelled for a few reasons and that $1000 will be rolled into the down payment on my Model 3. My wife thought about getting a Model 3 (while I was in line last March) and would have paid for it IF she sold her old house (she's renting it out). She works part time and would like to NOT do that job anymore and has considered being an Uber/Lyft driver except her current car (though in perfect working order) is too old. A Model 3 would fix that.

I see the OP was in the Seattle area - we're 40 miles northwest of Boston. Is there a way to see how much she could earn per hour?

 

[Uncle Paul]

And all this, even before Tesla rolls out their own proprietary ride sharing program.

Changes the economic way people look at their cars. Instead of an expense, it becomes an asset.

 

[LyftupX]

Is there any way to reasonably estimate how much one can earn with ridesharing in a given geographical area?

I have 2 Model 3 reservations. Right now, one of them will be cancelled for a few reasons and that $1000 will be rolled into the down payment on my Model 3. My wife thought about getting a Model 3 (while I was in line last March) and would have paid for it IF she sold her old house (she's renting it out). She works part time and would like to NOT do that job anymore and has considered being an Uber/Lyft driver except her current car (though in perfect working order) is too old. A Model 3 would fix that.

I see the OP was in the Seattle area - we're 40 miles northwest of Boston. Is there a way to see how much she could earn per hour?

To be honest unless you actually go out and do it I would say no. Being here I. The city that pays one of the highest rates in the country and having almost 2 years of data doing the gig is where my numbers come from.

The initial reaction is buying a car to do uber/lyft is crazy..... I've looked at it a bit differently and since my baseline is $1.52 for every mile driven with the potential for more, wife in the market for a new luxury car, my incremental profits being taxed at a very high rate..... that's the combination I have come up with where I could possibly make this work. I also do not want to get rid of my current paid off car I use , and would still bring it in play while I can during late drunken nights as a $ maker.
I'd be expecting $1.75 -$2 for every mile I drive on the Tesla net..... but $1.52 can make it work also if it happens to not increase the business. Business use miles will be important as I need tax writeoffs and my miles to out pace wife's daily commute.

 

[LyftupX]

And all this, even before Tesla rolls out their own proprietary ride sharing program.

Changes the economic way people look at their cars. Instead of an expense, it becomes an asset.

This too has crossed my mind, it would be a bonus if I was ridesharing with the Tesla and then the Network comes out. Heck the network with actual drivers before going full autonomous seems to make sense. I think many people would pick a Tesla for the experience to take an airport or other rides as it gets up and running,

I guess part of my original reason for posting was what people thought $ depreciation per a mile on a X is worth....is it $1 , $1.5 , $2 .....

 

[LyftupX]

Well the project is one step closer to
Taking place.

A deposit has been put down on an inventory car that fit all the qualifications. I will take possession before year end (sec 179) will all work out. I am debating on the bonus depreciation and using it now or just spreading the remaining balance over 5 years.

I still reserve the right to lose the deposit and walk away should things not line up before delivery. I have been paralyzed by analysis time and time again but the light went off and the numbers .... should work out on how I want to utilize it.

Year 1 rideshare goal with the Tesla $50k, I have another vehicle that will absorb usage as well so maybe 50% of that revenue (late night drunk crowd that is profitable but will not ride in the Tesla) Tesla may account for 12-15k miles driven in year 1 unless the $$ is rolling in.


If anyone wants to talk me off the idea I’m all ears.

 

[Fiver]

Remember also that Teslas qualify for Lyft Premium and Uber Select, so you can get high paying rides beyond what you make with Standard Lyft/UberX.

 

[LyftupX]

Remember also that Teslas qualify for Lyft Premium and Uber Select, so you can get high paying rides beyond what you make with Standard Lyft/UberX.

Yes whole premise of the opportunity.
Uber Select, XL, Regular rides ok when surging over 2x

Lyft: Lux SUV , LUX , Premiere, Plus and again regular if Surging 100% or more.

I opted for a black on black 7 seater to meet all qualifications. More tiers = more opportunity.

I happen to live in an area where there is high airport ride demand so we will see how it all works out. I plan to give most pax my info if they need regular runs and network. All rides done on the platform of course.

 

[cartwright]

Another way to monetize a Tesla purchase is Turo. Might make sense to sprinkle that in for days you can't drive or are out of town.

 

[Trips]

Every city is different so it is hard to tell how it will go.
In Omaha it is $.96/mile with $.20/minute
Average ride: $7 and limited Surge.
Grandfathered 20% commission vs 25% for new drivers.
I average around $1/total mile less expenses = $12/hour after all expenses. (I do not pay taxes)

With that not being much money I still plan on driving 6 or 7 hours a week and making $100 or so with my Model 3. That will make 50% of my car payment. Most importantly I drive for fun, and what could be more fun then giving some people a great Tesla experience when 95% of people here have never even seen a Tesla.

 

[LyftupX]

Seattle Market here , the tiers I’m targeting are $2.75 mile or more.

Airport runs will be a big focus, I am in the city and folks are going to and from all the time. $45-60 per trip.

I live within the city so I can have my app on and pull pings while at home. I will have to adapt a new schedule and drive mornings 5am-8 a few times a week.

We will see, I am comparing this to investing in a limo or any other high end car .... but my wife also satisfies her need for a car to boot,
I

 

[LyftupX]

Anyone think I am nuts?? That the depreciation hit is way too big to consider this?

I’m all ears if so...

 

[uuxxaa]

How will this affect your insurance?

 

[LyftupX]

The idea is now dead... lots of time on this and literally days away from potential delivery.

I think we just decided , and I this was a little too much of a commitment.

As far as insurance I was quoted with USAA who also has rideshare coverage, I have that on current vehicles as well.

This thread can now fade ... but I think I feel better overall about the decision.
No doubt it would have worked on how I do rideshare but $100k+ when it’s right there was too much to swallow.
I wonder

Now a $70k used?? Haha