How Much Ride-Share Drivers Actually Need To Set Aside for Car Wear and Tear
For ride-share workers, time is money. When the average driver's car breaks down, it’s usually a minor inconvenience followed by a hefty repair bill. However, for a gig work driver, a vehicle in the garage means hundreds of dollars a day in missed earnings.
When you sign up to drive for Uber or Lyft, insurance changes and phone data costs rarely get factored into your net hourly math. Wear and tear? Even less so.
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“Maintenance costs are just as big of an expense as gasoline, but since you're not feeling them all the time, a lot of people overlook them,” said Eamonn Turley, a car specialist at Road Smiles.
Here's a closer look at just how important a car maintenance fund can be for ride-share drivers.
Wear and Tear Is a Silent Car Killer
“Most riders think about their expenses related to getting from point ‘A’ to point ‘B,’ i.e., what they pay at the pump,” Turley explained. “But most often, it’s the maintenance, depreciation, brake replacement, suspension and tire replacement costs that ultimately end up killing a person financially.”
If you're driving for a ride-share platform, you need to know whether your vehicle can handle the load and whether your wallet can absorb the inevitable deterioration that comes from frequent stops, excessive idling and grinding through short trips all day.
“Realistic budgets for wear and tear depend on the vehicle, usage and driving conditions,” said Kasey Klenda, a car expert and attorney who handles personal injury and auto accident claims at Shull & Klenda. “Due to heavy daily driving, ride-share drivers should expect regular costs for tires, brakes, oil changes, suspension work and depreciation.”
Rising gas prices make the problem worse. When fuel costs spike, many drivers quietly cut back on routine maintenance — tire rotations, oil changes, brake pad replacements — just to keep cash flowing.
“As soon as fuel prices rise, most drivers reduce how much money they allocate toward repairs simply to stay within their means,” he said. “What typically occurs is the maintenance still needs to happen, but now it's going to occur when something finally breaks.”
Maintaining your vehicle is critical for both its immediate performance and long-term worth, and regular maintenance can considerably increase the car's lifespan while saving you money on repairs. This is important for every driver; for ride-share workers, it’s vital.
How Much Should I Put Toward a Maintenance Fund?
Whether you’re driving full time or as a side gig, you’ll be able to reduce your taxable income with mileage deductions using the IRS’ 72.5 cent business standard mileage rate. Or you can choose to calculate the more detailed actual costs of using your vehicle.
The IRS standard mileage rate isn't cash in your pocket; it reduces your taxable income. It's meant to account for gas, insurance and wear and tear all at once. After gas and insurance eat their shares, there's often little left to cover actual repairs. The deduction helps at tax time. It doesn't fix your brakes in October. That's why ride-share drivers should build a separate maintenance fund.
“Most drivers employ either an earnings percentage or a per-mile factor as a budgeting guide,” Klenda said. “Repair and depreciation costs increase directly with use especially in stop-and-go traffic; hence, a mileage-based approach is a more accurate approach.”
Turley agreed: “Casual riders could probably find it easier to save a percentage of their income — I think saving about 15% to 20% of earnings is reasonable for full-time drivers — but full-time ride-share drivers need to consider cost-per-mile. Each mile traveled by you for work shortens the life expectancy of your vehicle.
“For example, approximately .25-.35 cents per mile would be my preferred rate based on the type of vehicle driven,” he continued. “I believe this is a much more direct correlation of the wear and tear that is happening to the vehicle each mile.”
Low wages, unpredictable income and rising costs already make gig work a financial tightrope. The drivers who last aren't the ones grinding the hardest. They're the ones who treat their car like the business asset it is. So, set the money aside. Your future self (and your transmission) will thank you.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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