Comprehensive Financial Assessment for Gig Work in Ottawa
| Question | Answer | Confidence |
|---|---|---|
| Is renting financially viable? | Yes, but marginally profitable | Medium |
| Better than financing with 595 credit? | Yes, avoids 15-20% APR debt trap | High |
| Better than buying outright? | Only if capital unavailable | High |
| Risk of loss? | Moderate - depends on hours worked | Medium |
| Vehicle | Weekly Rate | + 13% HST | Monthly Cost | Type | Uber Eligible |
|---|---|---|---|---|---|
| Chevrolet Bolt EUV | $429 | $484.77 | $2,100 | Electric | UberX, Green, Comfort Electric |
| Kia Niro EV | $429 | $484.77 | $2,100 | Electric | UberX, Green |
| Kia Niro Hybrid | $429 | $484.77 | $2,100 | Hybrid | UberX |
| Chevrolet Equinox EV | $479 | $541.27 | $2,344 | Electric | UberX, Green, Comfort |
| Polestar 2 | $499 | $563.87 | $2,441 | Electric | UberX, Green, Comfort |
| Tesla Model 3 | $499 | $563.87 | $2,441 | Electric | UberX, Green, Comfort |
| Chrysler Pacifica | $499 | $563.87 | $2,441 | Gas/Hybrid | UberX, XL, Comfort |
| Expense Category | Bolt EV (Best) | Niro Hybrid | Polestar 2 | Notes |
|---|---|---|---|---|
| Vehicle Rental (incl. HST) | $2,100 | $2,100 | $2,441 | Weekly × 4.33 |
| Personal Insurance Add-on | $0 | $0 | $0 | Included in Weeve |
| Phone/Data Plan (Unlimited) | $80 | $80 | $80 | Required for app |
| Fuel/Electricity | $58 | $280 | $58 | EV: Off-peak charging | Hybrid: $1.50/L |
| Tolls & Parking | $50 | $50 | $50 | Airport pickups, downtown |
| Car Wash/Cleaning | $40 | $40 | $40 | Weekly interior cleaning |
| Accounting/Bookkeeping | $50 | $50 | $50 | Or DIY with tracking app |
| Emergency Fund | $100 | $100 | $100 | Deductible, downtime buffer |
| TOTAL MONTHLY EXPENSES | $2,478 | $2,700 | $2,819 |
| Tax Type | Rate/Amount | On What | Est. Annual |
|---|---|---|---|
| CPP (Self-Employed) | 11.9% | Net self-employment income | $2,500-4,000 |
| Income Tax (Federal + Ontario) | 20-30% | Taxable income after deductions | $3,000-6,000 |
| HST Registration | Required if >$30K | Gross revenue | Claim ITCs |
| Est. Total Tax Obligation | Based on $40,000 net income | $7,000-10,000 | |
| Expense | Deductible? | How Much | Documentation Required |
|---|---|---|---|
| Vehicle Rental Payments | 100% | Full amount if 100% business use | Rental agreement, receipts |
| Fuel/Electricity | Business % | Based on business vs personal km | Mileage log, receipts |
| Phone & Data Plan | Business % | Typically 50-75% for full-time drivers | Bills, usage records |
| Parking (Business) | 100% | Airport, business-related only | Receipts with dates |
| Car Wash/Cleaning | 100% | Full amount for rideshare vehicle | Receipts |
| Accounting Fees | 100% | Tax prep, bookkeeping | Invoices |
| HST Paid on Expenses | ITCs | Claim back as Input Tax Credits | HST-showing receipts |
| Gross Revenue | Deductible Expenses | Net Taxable | Tax Savings |
|---|---|---|---|
| $60,000 | $35,000 | $25,000 | ~$8,750 |
| $50,000 | $32,000 | $18,000 | ~$5,400 |
| $40,000 | $28,000 | $12,000 | ~$2,400 |
This is the critical question: "Is renting better than owning?" The answer depends on your specific financial situation, particularly your 595 credit score and recent bankruptcy discharge.
| Scenario | Weeve Rental (Bolt EV) |
Buy Used Cash ($20K Bolt) |
Finance Used (595 Credit) |
Finance New (595 Credit) |
|---|---|---|---|---|
| Upfront Cost | $1,000 deposit | $20,000 | $3,000 down | $5,000 down |
| Monthly Payment | $2,100 | $0 | $450 | $650 |
| Insurance/Month | Included | $270 | $270 | $300 |
| Maintenance/Month | Included | $150 | $150 | $50 |
| Interest Rate | N/A | N/A | 15-20% | 18-25% |
| Total Interest Paid | $0 | $0 | $7,500 | $15,000 |
| 5-Year Total Cost | $126,000 | $45,200 | $60,200 | $78,000 |
| Asset Value After 5 Years | $0 | $8,000 | $8,000 | $15,000 |
| TRUE 5-Year Cost | $126,000 | $37,200 | $52,200 | $63,000 |
Your board will ask: "Aren't we just throwing money away with rental?"
| Scenario | Year 1 | Year 3 | Year 5 | Equity Built |
|---|---|---|---|---|
| Weeve Rental | $25,200 spent | $75,600 spent | $126,000 spent | $0 |
| Buy $20K Used (Cash) | $25,200 spent | $35,200 spent | $45,200 spent | $8,000 |
| Finance $20K @ 15% | $20,640 spent | $51,840 spent | $60,200 spent | $8,000 |
| Lender Type | Approval Odds | Interest Rate | Down Payment | Notes |
|---|---|---|---|---|
| Prime Bank (TD, RBC) | Very Low | N/A | N/A | Generally won't approve post-bankruptcy |
| Credit Union | Low-Medium | 10-15% | 15-20% | May require 12+ months post-discharge |
| Dealership Financing | Medium-High | 15-25% | 10-20% | Canada Drives, Go Auto, etc. |
| Subprime Lender | High | 18-29% | 10-15% | Will approve but expensive |
| Weeve Rental | Guaranteed | N/A | $1,000 deposit | No credit check required |
Limited financing options, high rates (15-25% APR). Weeve rental is most accessible option.
With on-time payments on any credit products, score improves. Credit union financing becomes possible at 10-15%.
Prime auto loans become accessible at 7-10%. Significant savings compared to subprime.
Best rates available (5-7%). Full financing flexibility restored.
| Scenario | Interest Rate | Total Interest on $20K/5yr | Savings vs. Now |
|---|---|---|---|
| Finance Now (595 score) | 18% | $10,200 | Baseline |
| Wait 12 months (650 score) | 12% | $6,600 | $3,600 |
| Wait 24 months (700 score) | 7% | $3,700 | $6,500 |
| Scenario | Hours/Week | $/Hour Gross | Monthly Profit | Effective $/Hour | Viable? |
|---|---|---|---|---|---|
| Worst Case | 25 | $20 | -$478 | -$4.78 | No |
| Conservative | 30 | $22 | $162 | $1.35 | Marginal |
| Realistic | 35 | $25 | $1,022 | $7.31 | Yes |
| Optimistic | 40 | $28 | $2,120 | $13.25 | Yes |
| Best Case | 45 | $32 | $3,516 | $19.53 | Yes |
| Requirement | Minimum | Target | Why |
|---|---|---|---|
| Hours Per Week | 31 hours | 40 hours | Below 31 hrs = operating at loss |
| Gross Hourly Rate | $23/hr | $26+/hr | Ottawa average is achievable |
| Vehicle Choice | Bolt EV or Niro EV ($429/wk) | Lowest cost + EV bonus eligible | |
| EV Bonus Status | Optional | Diamond Status | +$4,000/year potential |
| Commitment Period | 3 months trial | 12+ months | Time to optimize and evaluate |
| Risk | Probability | Impact | Mitigation |
|---|---|---|---|
| Low rideshare demand | Medium | High | Multi-app (Uber + Lyft + delivery) |
| Vehicle accident | Low | High | $1,000 deductible covered by emergency fund |
| Health issues/burnout | Medium | High | Can pause/return rental; no long-term debt |
| Weeve rate increase | Medium | Medium | Month-to-month allows switching providers |
| Better opportunity arises | Medium | Positive | Easy exit with rental vs. car loan |
Contact Weeve Ottawa (ottawa@weeve.ca, 647-254-0812). Gather documents: driver's license, proof of Uber approval. Prepare $1,000 deposit.
Pick up Bolt EV. Complete Uber onboarding if not done. Start with 30-35 hours/week to learn optimal times/routes.
Track all metrics. Identify peak earning hours. Aim for Diamond status for EV bonus. Evaluate if 40+ hours is sustainable.
Review actual vs. projected earnings. Decide: continue, adjust hours, or exit. Start building savings for future vehicle purchase.
Credit score should be improving. Evaluate: continue rental or purchase vehicle. If purchasing, target used Bolt EV at improved financing rates.