Uber drivers can now lease cars through uber... But prices look insane!!

Discussion in 'Wall St. News' started by S2007S, Jun 7, 2016.

  1. Google 1999 porsche 911 engine problems. And here's where you could wind up further down the line Chevy LS engines - engine swappers appear to prefer those.

    I'm looking for a DeLorean to throw one of these suckers in.
     
    #41     Jun 9, 2016
    lawrence-lugar likes this.
  2. Blanket statement like this is worthless.
     
    #42     Jun 11, 2016
    DallasCowboysFan likes this.
  3. S2007S

    S2007S


    Really. Tell that to a friend of mine who returned his Acura and went into the same Acura (2016) with zero problems and same monthly payment....he was way over mileage
     
    #43     Jun 12, 2016
  4. S2007S

    S2007S

    Everyone still fails to realize that to pay the $650 monthly car payment you have to earn $900-$950 ...
     
    #44     Jun 12, 2016
  5. You're on a roll.
     
    #45     Jun 12, 2016
  6. Look, this isn't rocket science. From the two articles posted in this thread, it's easy to see that the Uber Xchange is catering to those with poor credit history, many of them being immigrants, just as the Payday loan companies who reap 300%+ interest rates on those who are desperate for short term cash and don't understand how the APR is calculated.

    From the articles, these are the most revealing statements:

    "Uber knows full well that for many people the Uber gig lasts just a few months."

    "The terms of an Xchange lease run 28 pages."

    "...catering to drivers with bad credit is intentional."

    "At $600 a month or so for many drivers, that's a hefty lease, leading critics to claim that the terms are predatory."

    "Uber also continues to drop its ride prices, making it harder for some drivers to keep up."

    "...leases can run far above the actual value of the car."

    "There's a lot of churn among Uber drivers—in 2013, a Princeton researcher found that 30 percent of drivers who started in the first half of that year had stopped working for Uber a year later—and Xchange is a way to keep new drivers signing up. The company knows those drivers may not stick around."

    "Damascus Durham, 28, got a lease from Xchange in January and picked up a 2016 Chevy Cruze from Team Superstores in Vallejo, California. "I only became an Uber driver for the car," he said. He pays $200 a week.

    He called the program "a scam." "I should be slapping myself," he said. "I've now read the contract."

    There is, however, ONE MAIN BENEFIT to the Uber Xchange program:

    "Uber's lease is more flexible than most subprime leases, the company said. After the first 30 days of the lease, a driver can return the car to Uber with two weeks notice, without any additional fees, apart from the payments they owe and the $250 they paid up front."

    If the driver feels he's in a raw deal and cannot make enough weekly income from Uber to justify the payment, at least there's an option to just return it.

    "Xchange has dealerships reassign cars to other Uber drivers when they get returned. It can be after a few weeks or a few months, and Xchange leases them to drivers with more troubled credit profiles."

    The best way for a Uber driver to get into one of these leases is to find a car that's been reassigned, and hopefully negotiate much better terms than the original driver, given the depreciated value of the car.

    The Xchange program is designed to "churn and burn" the drivers just like a $5k deposit prop shop is designed to "churn and burn" the traders for commission.

    Indeed, the article states the following:

    "There's no other way the model can work profitably for Uber."

    Here are the links to both articles, just for reference:

    http://www.cnbc.com/2016/06/07/uber-wants-to-disrupt-the-auto-leasing-industry.html

    http://www.bloomberg.com/news/artic...ase-machine-where-almost-anyone-can-get-a-car
     
    Last edited: Jun 12, 2016
    #46     Jun 12, 2016
  7. Since you always "chat the driver up" regarding pay, the next time you're in an Uber in several US cities, just ask the driver the following question:

    "If you had to pay Uber $140 to $200 from your weekly check to drive this car, would you still say the pay is OK?"
     
    #47     Jun 12, 2016
  8. Maverick74

    Maverick74

    Sure. I'll ask them. I've already asked them that basically because most of them had to cough up big bucks to get a new car or semi new car because Uber has to approve your car before you can use it. You can't use a beat up piece of shit. So I have asked all of them, after having paid all that money for the car, is it still worth it. Their answer...yes. Why? Because they had no alternatives. None of these guys turned down jobs at Goldman to drive for Uber. It was either Uber or sit at home and wait for callbacks for months on end earning nothing.

    Let me say this again Joe, in NY drivers pay over a million dollars for a medallion cab. Obviously they don't write a check for that amount so they finance it and guess what....it comes out to several thousand a month.....and they still do it. So yeah, I guess we have our answer. That's how markets work oddly enough.
     
    #48     Jun 12, 2016
    dealmaker likes this.
  9. A guy with say a 2010 Ford Focus that's paid off may last longer than a guy with an Uber Xchange new Corolla running a similar shift in the same region, even if both take $4 piker fares while doing a few airport runs. Which driver is more likely to churn and quit?

    The entire article resorts to the fact Uber is facing churn, especially now that ANYONE with a pulse, even if they have little or no credit, can drive for Uber. The article also states that Uber even shifted the burden of financial risk to the BANKS! Maybe we'll see another subprime credit crisis, this time in the car loan business, lol!

    The Uber Xchange program is great for consumers, but not for drivers, unless they find a niche where they can maximize revenues from surge pricing or the bar shift. Besides, there's no requirement to keep the lease for the full 36 months term. Most people can build their credit back within two years of consistent employment. If an Uber driver managed to last that long with the Xchange, then he's better off returning the car and trying to qualify for a better lease. The data isn't out since the program is relatively new.

    It will be interesting to hear the response from the drivers you talk with. My guess is if they had to resort to the $200/weekly hit off their paycheck, they probably would churn just as fast as the Xchange drivers.
     
    #49     Jun 13, 2016
  10. lol Mav. very funny.
     
    #50     Jun 13, 2016