Uber and Lyft—the two primary sources of transportation in the new “sharing economy”—are meant to empower the consumer and the entrepreneur alike. Everyday individuals can use these services to get where they need to go, without having to rely on inconvenient public transportation maps or pay exorbitant cab fees. Meanwhile, entrepreneurs can go to work for Uber or Lyft and make solid income as drivers—using their own vehicles to push their entrepreneurial dreams forward.
Of course, all this is contingent on these entrepreneurs actually having vehicles to escort their patrons—a start-up expense that may prove daunting to those who’d like to drive for Uber or Lyft, but simply don’t have cars of their own. One way around this, of course, is to buy used vehicles, getting reliable transportation for a fraction of the original sticker cost.
Buying used cars is a boon to Uber and Lyft drivers, but it may also be a boon to the used car economy, as one recent Automotive News article makes clear.
State of the Used Car Industry
Right now, used car dealers are shoring up for what many believe will be a deluge of new inventory—used cars that are either just coming off lease or rotating out of the rental car cycle. They’re developing elaborate sales and promotions to try to take advantage of all of this new stock—and to move through it as rapidly as they can.
One strategy they may use to help clear these new additions to their lots? Sell the used cars to Uber and Lyft drivers.
“Ride-hailing services represent a new outlet for carmakers to better manage the flow of late-model used vehicles, potentially putting them to long-term use while generating extra revenue,” shares Automotive News. “Some carmakers see a fresh business model in vehicles that traditionally have caused them head-aches, typically sold at auction for depressed prices that ultimately harm residual values.”
Used Cars for Uber and Lyft Drivers
General Motors has been leading the charge, rolling out a new program to lease their pre-owned vehicles to sharing economy drivers. The Equinox, Malibu, and Impala models have been especially popular as far as this is concerned. Other companies, including Toyota, say they plan to do the same thing.
Right now, these programs are small—but also promising. It provides dealerships with a great way to move through their slightly-used inventory without hogging too much space on the lot, and while still making a decent profit. Meanwhile, Uber and Lyft drivers get vehicles that are still in great condition, for more reasonable rates than they might get elsewhere.
Do you drive for one of these ride-hailing services? If so, then you may be interested in snagging one of these vehicles for your own. Contact a local dealership (start with Chevy) and ask if they have any deals for Uber or Lyft drivers. Also, keep checking Get My Auto for more updates on these exciting new programs.