Rental vs. Car finance – 16 benefits of car rental for ridesharing

    How to drive for Uber and be successful at it? The complete guide
    1000 500 Balazs Szekely

    A growing number of people are choosing to rent a car to drive with rideshare apps such as Uber. In fact, according to a survey by Finder.com.au, close to twice as many drivers would prefer to rent the car they use for ridesharing rather than buying one.

    So the question remains, why are people choosing to rent a car for on-demand driving? And what are the benefits of renting a car for Uber instead of financing? The table below summarises the benefits of renting a car with Splend compared to traditional car finance:

    Car financeSplend RentSplend Rent to own
    No deposit???
    Flexible contract???
    No credit check???
    Replacement car???
    Scheduled maintenance???
    Maintenance pack???
    Car registration & CTP insurance???
    Loss & damage cover???
    Rideshare documents???
    Car inspection???
    Member benefits???
    Referral bonus???
    Business mentoring???
    Payment holiday???
    Early buyout???
    24/7 breakdown assistance???

    1. No deposit

    We don’t charge a deposit, but we do charge a one-off, non-refundable joining fee when you sign up. Depending on the plan and minimum rental period you opt for, this fee can range between $275 and $990. This, however, grants you access to a vast amount of exclusive services, member benefits, and additional income opportunities that make the investment more than worthwhile.

    2. Flexible contract

    When buying a car through traditional finance, you commit to a four- or five-year lease. We offer cars on flexible agreements. On the Rent plan, you can provide your two-weeks’ termination notice after a minimum period of four weeks, and hand back the car after a total of six weeks. There are no exit fees to worry about.

    On the Rent to own plan, you put these weekly payments toward owning your car within three to four years, depending on how much you drive. Just like on the Rent plan, you have a lot of flexibility – you can hand the keys back after a 12-26-week period (depending on your initial commitment). If you return the car within the first 12 months of your Rent to own agreement, we charge a $500 return fee.

    3. No credit check

    To be eligible for a traditional car finance approval, you need a lot of supporting documents. When renting a car from Splend, you’re always paying one week in advance, so there’s no credit check needed. All you need is an Australian driver’s licence and a good driving record.

    4. Replacement car

    We give you a replacement car in if you ever have an accident so you can continue to work an earn while your car is being repaired.

    5. Scheduled maintenance

    Any professional driver knows that if you take care of your car, it will also take care of you. That can be a hassle at times, but not if you are a Splend member. Just give your Member Success Representative a call, let them know what needs fixing, and they will set up an appointment for you at the nearest service partner.

    The costs? That’s the best part, and it deserves a separate paragraph:

    6. Maintenance pack

    Some parts don’t last forever and need to be replaced periodically in order to meet roadworthiness standards, and not least for your safety. If you’ve ever owned a car you know that these can slowly burn a hole in your pocket.

    The Rent to own plan includes the following parts over the length of your agreement:

    • 12 replacement tyres
    • 12 brake discs
    • 12 brake pads
    • 3 wheel alignments
    • 9 windscreen wiper blades
    • 2 full sets of headlight bulbs
    • 1 replacement battery

    This means full brake and tyre swaps as well as new front and rear wipers every year, biannual headlight revamps, and a new battery if the original one ever fails – but most probably to mark the big day when you take full ownership of the car.

    7. Car registration & CTP insurance

    All Splend cars have valid registration and Comprehensive Third Party insurance. This is also a huge time-saver, not to mention that you’re covered if you ever have an accident.

    8. Loss & damage cover

    It’s in everyone’s best interest that you keep your car damage-free, but accidents happen. That’s why regardless if you choose renting or car finance, you’ll most certainly need a loss and damage waiver. With most traditional car finance options this means more costs and paperwork for you.

    At Splend, both the Rent and Rent to own plans include comprehensive rideshare insurance, and we also take care of renewing it on time – saving you time and potential losses to penalty charges.

    9. Rideshare documents

    Each state has different rideshare regulations – you either need a special accreditation added to your driver’s licence, an additional safety certificate for your car, or both. Regardless of local specifics, they all have something in common: it takes time and costs money to obtain and renew these documents, reaching hundreds of dollars annually in some cases.

    Splend’s support team processes all the necessary applications and we also cover the associated fees. All you have to do is drop by your local Member Support Centre and sign up for the plan that best suits your needs.

    10. Car inspection

    All of our cars are roadworthy and inspected by Uber. They’re always ready for you to jump behind the wheel and start earning an income.

    11. Member benefits

    Being a Splend member means more than signing an agreement and renting a car long-term. Apart from having your very own Member Success Representative to help you with everything from paperwork to data-driven feedback to maximise your earnings, you can also access a growing list of member benefits such as:

    • Health insurance
    • Tax and accounting
    • Money transfer
    • Car washes

    12. Referral bonus

    Driving a new-model car to earn a flexible income is just one part of the Splend experience. Did you know you can also supplement your rideshare income with referral bonuses?

    In simple terms, you spread the word and we reward you with a cash bonus of $150 for every new member you refer to Splend. Your friend will also receive a warm welcome and $50 off their joining fee. Read our post about the Splend referral program to find out more.

    13. Business mentoring

    Ridesharing is very similar to running a small business. It’s great, but it also comes with difficulties you may not have faced before, especially if you’ve been working nine-to-five prior to driving Uber. With Splend, you’re never alone. Our training sessions and one-on-one support will arm you with all the knowledge you need to be successful in your work and keep growing.

    14. Payment holiday

    Everyone needs a break every once in a while. When you hit pause on rideshare driving, we hit pause on your payment.

    You can put your payments on hold for up to four weeks every year on your Rent to own plan.

    15. Early buyout

    When you only have 12 months remaining on your Rent to own agreement, you can buy out the car and pay off the remaining weekly rental fees in one block. We won’t charge penalties or additional fees, just a symbolic $1 balloon payment for signing the car into your name.

    16. 24/7 breakdown assistance

    These days it really takes one heck of a problem to get stuck on the side of the road, with most all insurance companies and car manufacturers offering breakdown assistance. The internet is also at your fingertips with dozens of third-party towing services just a web search away – the only question is, how much will an unplanned adventure like this cost?

    With Splend you’re covered by default. Just call your Member Success Representative, and help will be on its way within minutes, free of charge.

    How much does it cost?

    This is the part where you normally brace for a nasty surprise, but this time you’re in for a pleasant one. Renting your car for rideshare is not only more convenient than financing, but also cheaper.

    Over a four-year period, you can save close to $2,000 on Splend’s Rent plan compared to financing the same model, and this doesn’t even include your earnings that you’d otherwise lose while doing paperwork or when your car is off the road for maintenance. Go for our Rent-to-Own plan and you can save up to $8,000, plus you drive away in your very own car.

    About Splend

    We enable people to make money by driving for on-demand apps such as Uber.

    We’re more than a car rental company. In addition to new-model cars and all the essentials to start earning money with Uber as quickly as possible, our members enjoy driver training and dedicated support via a personal account manager, as well as member benefits such as partner discounts and exclusive events.

    For more information about Splend, drop by to your local Member Support Centreemail us or say hello on 1800 775 363.

    AUTHOR

    Balazs Szekely

    Maker by nature, writer by profession, and a petrolhead at heart, Balazs is our very own content creator who brings Splend’s voice to life. He’s been a wordsmith his entire career, having seen it all from the print media to radio through online publishing and marketing copywriting. He’s fascinated by things he has yet to fully understand such as photography, ice hockey, and the bizarre art of aquascaping. In his free time you may find him mixing up cocktails for his friends or away from home on a city break. Drop him a line at balazs.szekely@splend.com

    All stories by: Balazs Szekely