I Do Uber Eats in Melbourne in a Car - What Do You Think about My Approach?

LFrugalDealSeeker on 15/01/2020 - 09:01
Last edited 16/01/2020 - 00:11 by 1 other user

A few points to be noted:

  • I am a temporary resident which severely restricts my credit options when it comes to purchasing a car.
  • I have a decent full-time job, so Uber Eats is a supplementary income

Ok so, I bought a car on a cash-credit loan (I know that may sound dumb but hear me out), a Honda Accord 2009 from a dealer driveway. I got $5000 approved + $1500 of my own money and another $50 for pre-purchase inspection was all I paid towards the car. My loan instalment is $125/wk. After work at about 5 pm, I work about 1-2hr every day and this results in a net payment of approx $250/wk - $30 for fuel which I would have to pay anyway for public transport (I commute in Zone 2 almost exclusively). The loan interest goes up to 30% pa but there are 2 silver linings:

  • Car is not under finance so I can basically sell it anytime as I am betting the car would still hold value more than the remaining payments and after about 6 months I would still make a profit regardless
  • As per the first point, I don't have any finance options anyway
Final Thoughts

My insurance ($104/m) + fuel ($30/w) are basically the only running costs. I have not serviced yet so I am not sure about maintenance.
I am open to suggestions and criticisms.

Education & Work

Related Stores

Uber Eats
Uber Eats
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Comments

  • oscargamer on 15/01/2020 - 09:07
    +33

    30% interest rate !!! You serious?

    • FrugalDealSeeker on 15/01/2020 - 09:21
      -1

      I thought it went without saying that this is a type of loan where they charge you an equivalent to broken knee-caps for defaulting or a quick-fix loan for desperate people to put it politely but as an immigrant, you don't really have a lot of options. I don't want this thread to segue into immigration either. But anyway, in the grand scheme of things, even if I break even at the current rate and the car goes for $4500 then at $1500 I get a 300% ROI + added bonus of convenience of a car.

      • Skramit on 15/01/2020 - 09:23
        +4

        I think it's a bit misleading to claim your Uber Eats wages as a ROI on your car.

        • FrugalDealSeeker on 15/01/2020 - 09:25

          I am not actually claiming uber eats wages as ROI. I am using Uber Eats wages to pay out the loan. I am using the resale value of the car as ROI over my down payment.

          • Skramit on 15/01/2020 - 09:28
            +21

            @FrugalDealSeeker: Your maths is broken if you think you're getting 300% ROI.

            • FrugalDealSeeker on 15/01/2020 - 09:30

              @Skramit: How? $1500 down payment, $4500 income.. 1500/4500*100 = 300%? Assumption labour, service, etc. everything breaks even with $250/wk UE wages.

              • wannagrababargain on 15/01/2020 - 09:54
                +11

                @FrugalDealSeeker: You still need to pay off the loan…. Let's assume you sell the car for $4500 and the loan will cost $4000 to pay out. You are left with $500 in your pocket…You started with $1500? Now you have $500..

                Let's assume you sell the car after the loan is fully paid off, and still get $4500. You have $4500 in your pocket. The loan was paid off alredy with your Uber income which is effectively the original criticism.. "claiming Uber Eats wages as ROI." He's just saying it's the wrong way to use the term "ROI"

          • HighAndDry on 15/01/2020 - 09:40
            +1

            @FrugalDealSeeker: But your investment isn't just the down payment, it's that, plus taking on the loan liability + interest + fees.

            Your ROI needs to be worked out based on that.

            • Chandler on 16/01/2020 - 10:50
              +6

              @HighAndDry: And this is all completely ignoring the time invested.

              • serpserpserp on 17/01/2020 - 20:12
                +1

                @Chandler: Also completely forgetting ongoing rego past year 1, drivers license fees, wear and tear, services on the car.

      • whooah1979 on 15/01/2020 - 09:24
        +1

        even if I break even

        So you're willing to work for free. Please give us a call. The boss would love to have work for us.

        • FrugalDealSeeker on 15/01/2020 - 09:29
          +3

          Does your boss give a free car and is ok with me deciding when to work?

          • whooah1979 on 15/01/2020 - 09:31
            +13

            @FrugalDealSeeker: Company vehicle provided. However, you do have meet the KPI to be able to keep working for free.

            • FrugalDealSeeker on 15/01/2020 - 19:12

              @whooah1979: Yeah well, Uber doesn't have that. All you need to do is lick shoes, mow the lawns and basically do whatever they say for every customer to avoid bad ratings and eventual account suspensions. Yes, UE customer service doesn't entertain your side of the argument.

      • Zonty on 18/01/2020 - 11:01

        Few things you should have done, now it's too late for finance.
        1. Do you got credit card? If yes then should apply another credit card with balance transfer deal( as you have full time job you might have get $6000 worth credit limit which could have transfer that money toward regular credit card and can use for purchase car. Balanced tansfer deal is good because you will pay 2% or 1% for paying min payment every month till end of balance transfer deal. When balance transfer deal finish you need pay off all rest amount and aslo you should not touch that card till you pay off full.
        2. Your premiums seems high for $6000 value of car.( try bingle, or aami or other competing insurance companies) .
        3. Uber eat you are making$250 per week and you got full time job so you will pay something like this end of year
        Yearly income $13000
        Tax claim. -$3400 ( based on 5000 km)
        —————-
        Net income. 9600
        -$3120 tax on that will be 32.5 if you making on full time job +$37000
        —————
        $ 6480 left over uber eat money
        -$ 1500 interest on finance probably can claim for tax purpose of uber usage km
        -$1600 petrol approx
        -$ 1300 insurance approx
        - $ 180 car service
        -$ 850rego cost approx
        ————-
        Net money left $950 after expenses but not include your car principal repayment and other cost like changing wheels and changing battery etc. and fines ( if you drive a lot you have chance get fines)
        Basically you will pay off your car in 5 years and you will have your personal vehicle to use by working extra.

        • FrugalDealSeeker on 18/01/2020 - 12:00

          OK, this is how it goes:
          1. I'm not eligible for the majority of the credit cards as I am a non-PR. Also for the remaining ones, since I am self-employed/ contractor I don't get issued payslips so to prove my income, I have payments against invoices, basically, I have to show ATO NOA. Now call it what you will, even at $300/day my taxable income after deductions reached $38k as I could claim the majority of my expenses for FY 18-19. Now think about it, I have $125/wk as loan installment and my credit provider extrapolates my income to $730/wk, based on the aforementioned facts, credit providers think I am "highly likely" to default plus I am a flight risk given my residency status.
          2. Bingle doesn't have roadside and AAMI doesn't insure non-PRs. Also, the majority of them require you to have a full VIC license for 2 years or their premiums were excessive. I went with Woolies. Also please note, I am paying monthly, not one-time yearly.
          3. As long as my car-business breaks even after 1 year only by working 1-1.5h/day, I will be happy. I don't intend to make a profit anyway.

    • chasis on 16/01/2020 - 14:18
      +2

      I did a spit take when I read 30%.

  • pyramid on 15/01/2020 - 09:10
    +15

    30% interest rate….i would get out of it NOW…

  • boomramada on 15/01/2020 - 09:17
    +17

    $125 PW, I would get a latest BMW and try to become a banker.

    • Skramit on 15/01/2020 - 09:19
      +12

      $80k BMW to be precise.

      • tomsco on 15/01/2020 - 09:23
        +4

        $80k BMW MB to be precise.

        • Skramit on 15/01/2020 - 09:23

          Dammit I thought it sounded wrong when I wrote it.

    • FrugalDealSeeker on 15/01/2020 - 09:27

      Again, I am a TR, which means I only get as much I can payout in 80% of my visa duration (approx. 1.5 yrs at the time). Also, aren't European cars super expensive to maintain?

      • whooah1979 on 15/01/2020 - 09:29
        -6

        Also, aren't European cars super expensive to maintain?

        They make up for it with their reliability.

        • FrugalDealSeeker on 15/01/2020 - 09:31

          Fair enough, but then again call it personal preference. I like the 2009-2011 Accord shape and stuff.

        • boomramada on 15/01/2020 - 09:52
          +1

          Reliability ?

          More like Prestige factor.

        • Bargain80 on 15/01/2020 - 11:20

          don't forget the high yield investment

        • Jugganautx on 16/01/2020 - 15:01

          Hahahahahaha okay.

    • Munki on 16/01/2020 - 16:04
      +1

      Read that occupation title with a different starting letter.

      • serpserpserp on 17/01/2020 - 20:14
        +1

        I initially read it as he eats uber eats in his car in Melbourne.

  • Skramit on 15/01/2020 - 09:18
    +14

    My insurance ($104/m) + fuel ($30/w) are basically the only running costs.

    Servicing, tyres and depreciation are also running costs. Ignoring them is kidding yourself.

    • Laurenlauren on 28/01/2020 - 08:14

      Registration, license fees, tolls, parking, cleaning costs etc

  • whooah1979 on 15/01/2020 - 09:18
    +18

    Is there a question here somewhere?

    • Skramit on 15/01/2020 - 09:19
      +18

      No, but it's a good thread regardless.

      popcorn

    • mafmouf on 16/01/2020 - 19:08
      +1

      Yes. It's in the title.

  • profar on 15/01/2020 - 09:26
    +4

    Domino delivery drivers about the only job competing for suckers that use their own transportation and after all expenses are definitely on lowest wages in this country .

    BTW with the tittle I though you eat Uber eats in your car and had some tips for those with 10 burner ac’ s .

    • FrugalDealSeeker on 15/01/2020 - 09:33
      +3

      No, but I get stereotyped by restaurants into thinking I am a UE/ Menulog delivery boy, even when I want a takeaway for myself.

      • Namidairo on 17/01/2020 - 15:51
        +2

        I don't suppose you are one of those "wear a bike helmet indoors" types?

    • whooah1979 on 15/01/2020 - 09:35
      -2

      It's not the employer's fault if workers are willing to work for free.

      • mskeggs on 15/01/2020 - 11:12
        +9

        Sure, but we have labour laws to try and stop a race to the bottom, as it isn't in society's interest for people to work for free.

        • whooah1979 on 15/01/2020 - 11:24
          +9

          No laws can save people like OP.

        • HighAndDry on 15/01/2020 - 16:46
          -2

          Not really a race to the bottom. Labour follows the same supply and demand imperative like any other good or service.

          • brendanm on 15/01/2020 - 18:27
            +1

            @HighAndDry: Which is why large corporations are super keen on globalisation.

            • HighAndDry on 16/01/2020 - 09:18
              -1

              @brendanm: Part of it. Access to bigger labour market is a factor, but also access to bigger consumer markets which will likewise increase demand for products and by extension labour too.

              It basically levels the playing field by merging individual countries into one global market. But that also means everyone tends towards the mean, which is bad for countries above the average, but good for those below it.

      • outlander on 16/01/2020 - 15:43
        +3

        Do you really want to live in a society where success is awarded to those most willing to take advantage of the mentally challenged?

        • whooah1979 on 16/01/2020 - 23:15

          OP don't sound like a mentally challenged person.

          • outlander on 16/01/2020 - 23:47

            @whooah1979: In this age of immensely powerful technology, where one person can gain more money and influence than an entire country, everyone is challenged when it comes to mental ability.

    • DangerNoodle on 18/01/2020 - 11:36
      +1

      Depends on how you see it. Back when I worked at domino's, the wage for delivery drivers (under 21) was around $19.00 per hour plus around $2 per delivery. I was driving a small honda civic 1.6L which was quite economical to run and cheap to insure. At the store I worked at, I was handling 13-15 deliveries per hour over a small delivery area (about 5km is the further point, most were within 1km), and most deliveries were prepaid so it was quick and easy.

      $19.00 + 13x$2 = $45 per hour when I was working. Fuel in my car was cheap as I rarely travelled over 50km during my shift, (around $4 in petrol for the whole shift in my civic), and insurance was cheap as I only had third party insurance (around $200 per year). Throw in that at tax time, you can claim back the kilometres travelled as a reduction (sometimes $3000-4000 off your taxable income depending on how many kays you do per year) and it wasnt so bad. Maintenance in my civic was cheap, had some connections so regular servicing was around $100 every six months, and civics were cheap and reliable runabouts so I didn't have to fix anything during my four year stint.

      This was about 8 years or so ago, I would imagine that the current pay rates are higher at dominos.

  • this is us on 15/01/2020 - 09:32
    +2

    😮

  • ihbh on 15/01/2020 - 09:33
    +2

    Cash flow per week:

    • 250 - fare
    • -25 - insurance
    • -30 - petrol (could arguably exclude due to public transport cost, but you are paying with your time)
    • -30 - interest
    • X - maintenance
    • Y - depreciation (that is, capital loss when you sell)

    -> $165 - X - Y

    Cash flow per hour:

    How many hours do you work per week? Can you divide the cash flow into hours to work out hourly rate ($10 or less?).

    • FrugalDealSeeker on 15/01/2020 - 09:36
      +12

      You are right, it's way off the minimum wage, but what am I doing otherwise to earn at that time? I love to drive and the Sandringham area is beautiful in the evening. Not denying your logic, just showing silver linings.

      • MementoMori on 17/01/2020 - 10:27
        +9

        Plus one for the positive attitude!

        • Hangryuman on 17/01/2020 - 14:30
          +3

          he's not losing money - he's an entrepreneur building his business from the ground floor !

          (at least that's what UberA$$ wants him to believe)

          UberEatsYourLunch …

          I love the ROI of using a $5000 car with 30%pa interest loan earning $10ph (never mind the risk of parking tickets for double-parking/illegal parking/food getting cold looking for a park) delivering would've-tasted-good-20-mins-ago soggy food to Gen-Zedders who think they're like the TV ad - rudely grabbing the bag from the overseas immigrant who's risked their life and limb bringing that food across town to them - then ignore them

          Sweet A$$ bro' …

  • Bonbi on 15/01/2020 - 09:36
    +4

    $1248 for insurance? Come on now…

    • whooah1979 on 15/01/2020 - 09:38
      +6

      Comprehensive insurance for P drivers are expensive.

      • FrugalDealSeeker on 15/01/2020 - 19:08

        I am not even P, I am international.

        • [Deactivated] on 15/01/2020 - 23:58

          Why not get a Vic driving licence?

        • bazingaa on 17/01/2020 - 13:45

          You have to get Victorian licence soon as per new rules, I think you are aware of that

          • j0hnd0e on 28/02/2020 - 16:51

            @bazingaa: Just curious, do vic roads actually enforce it? I know people in QLD who are international students who have been driving with their international license for over a year and had no issues.

            • bazingaa on 28/02/2020 - 17:46

              @j0hnd0e: It is a new rule I think, I heard from someone that Ubereats has already asked international licence holders to update the licence information before end of the April to continue working for them

    • Jugganautx on 16/01/2020 - 15:06

      Mine is $750 and that was looking at every insurer and ive had my full licence for 5 years… not that far off for a international liability..

      • unwashed00 on 17/01/2020 - 13:52

        International liability is not a thing though. Some insurers add an extra excess but not all of them and not in all circumstances.

    • mrcherry on 16/01/2020 - 18:37
      +2

      He may have also notified his insurer (as he should) that he would be using it for UberEATS. Most general insurer's won't insure UberEATS drivers but if they do they will apply business rates instead of personal.

      • Wickz on 23/01/2020 - 08:52

        Used to work in insurance - this is correct. There is a question that is asked about how your car is used - private / business use, then what % and what type of work. If you selected courier / delivery driver the cost almost doubled as your car is now a higher risk to insure as you are spending more time on the road, so therefore the % chance of being involved in an accident is higher.

        If you don't tell your insurer that your car is being used for delivery puroposes and you have an accident, they may refuse to accept your claim.

    • Keplaffintech on 16/01/2020 - 22:08
      -1

      What about rego + CTP? I assume that's all included in the figure, which is a pretty good total.

      • brad1-8tsi on 17/01/2020 - 09:44

        I think he's overlooked the need to eventually renew the reg/CTP

        • [Deactivated] on 17/01/2020 - 10:51

          But he would of had to do this anyway, car is used for regular full time job.

          • brad1-8tsi on 17/01/2020 - 14:09

            @[Deactivated]: The way I'm reading it is that he was taking public transport and has bought the car to get to work quicker but it's cost neutral because UberEats is paying the running costs and exorbitantly priced loan.

            In any event, you can't just include the costs that you feel like and ignore those that make your calculations wrong. That's the domain of State Governments trying to justify overpriced motorways and light rail.

  • Oz8argain on 15/01/2020 - 09:45
    +4

    you have a decent full-time job, then why can't you just save another 5k… shouldn't take you that long.. Is it because you urgently want to do UberEats?

    • FrugalDealSeeker on 15/01/2020 - 19:07

      I think I wrote previously somewhere, PT to work is bad. I have to walk 10 mins and 30 min bus ride or 10 min drive. I could save another 5k but kill myself over this or do what I am doing and luxuriously do uber eats! (sarcasm)

      • od810 on 16/01/2020 - 15:21
        +4

        Why don't you work extra for another 2 months and save the cash for the car? you are willing to work many extra hours of driving in order to pay for the car AND the stupid amount of interest? That's just ridiculous. I refuse to look at any loan with interest above 5%.

      • movieman on 16/01/2020 - 17:42
        +10

        OP.

        Why don't you cycle to work?

      • esty on 17/01/2020 - 09:18
        +4

        heres some perspective - i used to catch a 55min train to work…. :)

        • Omitsukasa on 17/01/2020 - 17:23

          I still do… Add tram on top of that as well.

      • MementoMori on 17/01/2020 - 10:28
        +2

        40 min to work is considered very good in overcrowded Melbourne.

      • johnno07 on 17/01/2020 - 16:05
        +3

        Err… so you're working two hours a day to save one hour on your daily commute? This seems like an unusual trade.

      • [Deactivated] on 18/01/2020 - 01:19

        so to save 60 mins a day for 2 months, you're going to work 60-120 mins a day for 6 months? that is without considering all your other costs.

    • dwillia on 24/01/2020 - 20:23

      free fries?

  • whooah1979 on 15/01/2020 - 09:46
    +1

    OP, you should've purchased a Piaggio. Cheap to buy and cheap to run.

    • FrugalDealSeeker on 15/01/2020 - 20:21

      Melbourne's weather is too extreme for me. I basically am either freezing or sweating, sometimes both on the same day.

      • od810 on 16/01/2020 - 15:23
        +1

        Buy proper bike gears and save you tons on petrol.

  • holdenmg on 15/01/2020 - 09:54
    +4

    Fat Tony Car Yard (Finance Available)

    Nooooooooooooo…

    • bdl on 16/01/2020 - 16:36

      CAAARCIIIITY

    • AbsX on 18/01/2020 - 09:03

      Pleasure doing business

  • abb on 15/01/2020 - 10:15
    +1

    The loan interest is probably (at least partially) tax-deductible. Keep good records and look into it at tax time.

    • HighAndDry on 15/01/2020 - 10:47
      +2

      The ATO might be interested in OP claiming literally all of his UE income as deducted for interest expenses. Not saying it's not valid, just that the ATO might not buy someone is really so stupid as to do this.

      • netjock on 15/01/2020 - 10:59

        He needs to keep a log book to see.

      • whooah1979 on 15/01/2020 - 11:10

        Op could get an ABN and get in instant asset write-off.

        • runybix on 16/01/2020 - 15:24

          I don't think temporary residents are eligible to get an ABN

          • [Deactivated] on 16/01/2020 - 18:36
            +2

            @runybix: Of course you can.

            Source:My wife was an international student once upon a time.

      • abb on 15/01/2020 - 11:15
        +2

        claiming literally all of his UE income as deducted for interest expenses

        They seem happy for landlords to write off all rent income (or more) against loan interest, I don't see the difference.

        But I'm not an accountant, this is not financial advice, etc

        • HighAndDry on 15/01/2020 - 13:40

          Properties can be valuable because of capital gains on sale. Not so much an UE career or car.

    • FrugalDealSeeker on 15/01/2020 - 18:46

      I am already registered for ABN as I am a contractor so obviously loan repayments would be at least 90% tax-deductible as I have coles in my building and I am a single bachelor so I have little to no need of using my car for personal reasons.

      • Ozpit on 16/01/2020 - 08:35
        +4

        Any married bachelors reading this who can comment?

        • unwashed00 on 17/01/2020 - 13:55

          I have a bachelors degree and used to be married. Can I comment?

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