Ex Uber driver owes $2,800 monthly on vehicle debt. Dave Ramsey says he basically worked for free and has only one option left

H&R Block reports that nearly 1 in 4 Canadians (23%) work in the gig economy, and about a quarter of those depend on it for their primary income — but these jobs aren’t always sustainable (1).

In fact, one young man is learning the hard way that the money he earned didn’t offset his upfront investment.

Joseph, 29 years old, recently called The Ramsey Show to ask hosts Dave Ramsey and Jade Warshaw if he should surrender one of the two cars he financed to drive for Uber and Lyft (2).

Joseph explained that he first financed a Honda CRV for US$60,000, thinking that he could pay it off with his earnings. However, while he was initially making about US$2,700 a week, his earnings dropped after Uber changed its eco-friendly program for hybrid vehicles.

Joseph then bought an Acura MDX to qualify for the UberXL program. He put down US$30,000 and took out a US$54,000 loan for the remaining amount — now owes US$2,800 monthly for both vehicles.

Since then, Joseph’s employment situation has changed. He gave up driving and now works another job earning US$22 hourly. He’s behind on his car payments, and his credit score is tanking.

“You financed a Honda for US$60K to drive Uber?” a dumbfounded Ramsey asked, and followed up with some harsh truths for Joseph.

‘You’ve been working for free for Uber’

Ramsey had some harsh words for Joseph, who plunged into this work without first understanding the costs and risks associated with it.

“You weren’t making any money doing Uber and Lyft because you haven’t been smart enough to factor in all the losses on your vehicles. When you factor that in, you didn’t even break even … You didn’t take out gas and repairs either, did you?” he said. “You didn’t even make money on all this. You’ve been working for free for Uber.”

Joseph explained that Uber seemed like a more lucrative job compared to the minimum wage work he had been doing. However, his hasty decisions led him into a bad financial position.

Ramsey advised Joseph to immediately sell the second car he bought. However, he warned that allowing either car to be repossessed could force him to file for bankruptcy.

“If you just turn these cars in, they’re going to sell them for 50% of what you think they’re going to sell them for, and they’re going to sue you for the difference,” he explained.

“You’re going to find out that your Uber career bankrupted you, along with some really stupid decisions.”

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What is voluntary repossession?

Voluntary repossession means surrendering your vehicle to your lender because you can’t afford the loan payments. This differs from involuntary repossession — where the lender reclaims the car without your consent.

Aside from missing loan repayments, having your vehicle repossessed is a serious issue that will seriously hurt your credit score. And after you surrender the car, you may still owe money on the loan. As Ramsey said to Joseph, the lender may sell the car for less than your loan price, leaving you on the hook for the difference. You can be sued by the lender if you can’t pay up.

Any type of loan default will negatively affect your credit score. Additionally, your car insurance rate may increase, because your insurer considers you high-risk going forward.

Gig-working the rideshare economy — what you need to know

If you’re considering working for rideshare providers like Uber or Lyft, taking out a car loan to do so is the same as getting a business loan. It’s upfront money that’s your sole responsibility to repay.

Also, driving for Uber, Lyft or another rideshare company isn’t the same as working a regular job: There’s no guaranteed minimum hourly wage, and many inexperienced drivers can find themselves barely breaking even — or in the red — after only one shift.

One driver named Clarke Bowman shared his experience driving for a rideshare with Business Insider (3). “Imagine my surprise when I accepted my first [Uber Pool] ride, picked up two people, drove for 34 minutes and 24 seconds, completed the ride and earned just $9.41,” he said.

Before you invest in a new vehicle, try test-driving with your existing car for at least a few months to get a sense of what you earn on average. That way, a few weeks of good earnings won’t skew your perspective like it did for Joseph. Track your earnings, as well as insurance, fuel, repairs and maintenance expenses to get a reasonable sense of your disposable income before you decide to finance a new vehicle.

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How to get your finances back on track

If you find yourself in a similar situation, with car payments you can’t afford, know that you’re not alone. According to Equifax, as of Q1 2025, the overall auto loan delinquency rate rose by 15.3% year over year — the highest since 2009 (4). But there are ways you can get back on track.

If you owe money on a vehicle you can’t afford, your first step is to sell the car privately. As Ramsey advised Joseph, “The best thing to do is to control the price of the sale.” When you sell a car on your own terms compared to repossession, you have a better chance of getting a fair price. Then you can make a plan to cover the balance of your loan.

Ramsey advised Joseph to earn as much as possible in the coming months — maybe even driving for Uber again when he has the time — so that he can pay off the loan and move forward with his financial lessons learned.

If you need to dig yourself out of a financial hole, consider the following steps:

• Track all your expenses. Review your banking, loans and credit card statements from the past year. This will give you a clear picture of both your business and personal expenses so you fully understand where your money needs to go and where you can cut back.
• Pay down high-interest debt first. Make payments on balances that cost you the most money over time, such as credit cards. You’ll save money on interest, free up your budget and improve your credit score over time.
• Build a $1,000 emergency fund. Start with a small buffer against any unexpected expenses that may crop up while you’re getting your finances back on track. Once the debt is fully paid, you can focus on building this fund to cover six months of expenses or more.

Bottom line

The rideshare economy can seem like a quick way to earn income. But Joseph’s experience shows how vehicle expenses, loan debt and unpredictable income can eat away at profits.

Before getting behind the wheel, crunch every number — including fuel, repairs, maintenance and insurance — to make sure you come out on top. And if you’re already struggling with payments, build a solid financial foundation first to avoid falling further behind and damaging your credit score.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

H&R Block (1); The Ramsey Show Highlights (2); Business Insider (3); Equifax (4);