Should you buy a new car or a used car for rideshare?

Parking lot with different colored cars

There is nothing that smells better than that of a new car. I love a new car and I’m sure you all do as well. However, is buying a new car the right decision if you are going to be using it for rideshare?

We have all heard people say that the moment you drive a new car off the car lot its value immediately drops and that is true. According to Cars Direct, on average, a new vehicle depreciates 19 percent in the first year after purchase, half of which occurs immediately after you take possession. Fortunately, depreciation does not continue at this rate. You can expect a 15 percent drop in the second and third years. 

I believe that if you are going to purchase a car for rideshare it should be a used one. I recently bought a car that had just come off lease with low miles. It was just shy of 3 years old and it still had that new car smell. The 2020 model versus the 2017 model looked exactly the same. It felt like a new car but was $17,000 less. Also, my insurance premiums were less than what they would have been on a new car. So for less money I got essentially the same product!

One more thing to think about is wear and tear. You are going to be using it for rideshare and it’s going to get a lot of use. Riders are rough on cars and seeing a new car go through the rideshare wear and tear can be heartbreaking. Are you ready for that?

Tomorrow: Speeding and the CannonBall Run

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