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Can you make "a lot of money" with an Xchange Lease for Uber?

Michael - Cleveland

Well-Known Member
Moderator
You can make a lot of money even with Xchange. An Xchange lease may run you $500 a month, but you can make $3500/month driving for Uber.
I would like to hear from anyone who has had an Xchange lease for more than 6 months:
Are you making any money?
What city do you drive in?
What does the lease cost you?
Some people will have to move to get jobs. This is the problem with urban squalor. If you aren't willing to move to get work, you only have yourself to blame.
Yeah... I'm not sure we want to become a nation of migrant workers... and the Xchange lease program is available only in some major cities - and still requires credit approval.
 
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HoldenDriver

Active Member
It's not about "migrant workers" - the fact is, some people will have to relocate to where their skills are in demand. That is how it has been in every recession. If there are eight blacksmiths in a town, and you're a blacksmith, you may have to move somewhere else to find your services in demand.

The problem is we have a cupcake generation, living on welfare, that would rather sit at home and collect a government check. I am not saying that applies to all, but it does apply to sadly, millions.
 

StuartPatrick

New Member
I had an xchange lease since August and terminated it today. I made an acceptable amount of money, and sometimes even "a lot of money". I suppose it depends on what you mean by "a lot of money".

The lease has several advantages: you can get into a car with very little in the way of a down payment, the payment is deducted directly from your earnings from uber so you never have to worry about paying on time, an accountant will help you with tax advantages specific to leasing a vehicle for commercial purposes, you can opt out of the lease any time and thus do not have to worry about long term maintenance and upkeep (approaching the 75k odometer mark was one of the reasons I opted out today), and there are no mileage limits on the lease.

The program has several disadvantages too, namely it's an enormous amount to pay for a car per month and your payments are not reflected on your credit score.

Ultimately, you can make money with it, but you want to do your own research. It was an option that fit my situation, but it may not be the best option for you.
 

Michael - Cleveland

Well-Known Member
Moderator
  • Thread Starter Thread Starter
  • #5
It's not about "migrant workers" - the fact is, some people will have to relocate to where their skills are in demand. That is how it has been in every recession. If there are eight blacksmiths in a town, and you're a blacksmith, you may have to move somewhere else to find your services in demand.

The problem is we have a cupcake generation, living on welfare, that would rather sit at home and collect a government check. I am not saying that applies to all, but it does apply to sadly, millions.
I wish this were the place and there were time to explain to you why it is not in the interest of our nation to have people leave their families to work somewhere else... and explain that why spends years apprenticing as a 'blacksmith' anymore - and that education is any field is as close as the nearest library with an internet connection. Too bad this isn't the place - and there isn't the time.
 

saucy05

Well-Known Member
I drive with a rental but not through Uber.

It all depends on how often you drive. If you drive enough, you CAN make a lot of money driving with a rental for a non skilled worker. Actually, IMO it is better to drive with a rental if you drive a lot (50 - 60 hours a week) because your average cost will get lower and lower the more you drive (graph below).

A typical driver with a rental Prius will probably need to drive around 10 hours just to break even in my market (Los Angeles). Another 10 hours to break the minimum wage.
rented.png
 

HoldenDriver

Active Member
There's one other huge asset to Xchange... it's nigh impossible to get a lease with unlimited miles. If you have a long-distance commute, you can use the car personally as many miles as you want.

While some (like me) would rather burn those miles on a cheap, older used car, if you do want the latest-and-greatest, and a conventional lease won't give you enough miles... Xchange is an option. Especially if you long-commute and Uber too.

When you factor in unlimited maintenance and warranty work - that can add up a lot if you drive >20,000 miles a year.
 

elelegido

Well-Known Member
I would like to hear from anyone who has had an Xchange lease for more than 6 months:
Are you making any money?
What city do you drive in?
What does the lease cost you?

Yeah... I'm not sure we want to become a nation of migrant workers... and the Xchange lease program is available only in some major cities - and still requires credit approval.
Every market's different, as is the commission paid by drivers. In Socal, the lease is $150 per week approx. for a new Prius C. So to pay for the lease and for the gas needed to drive to earn the money to pay the lease you need to gross around $200 per week. IMO it"s only worth it if you're going to be grossing $800+ total per week, and then only short term while you save up for a $3-4,000 hooptie.
 

txtim1982

Well-Known Member
I drive with a rental but not through Uber.

It all depends on how often you drive. If you drive enough, you CAN make a lot of money driving with a rental for a non skilled worker. Actually, IMO it is better to drive with a rental if you drive a lot (50 - 60 hours a week) because your average cost will get lower and lower the more you drive (graph below).

A typical driver with a rental Prius will probably need to drive around 10 hours just to break even in my market (Los Angeles). Another 10 hours to break the minimum wage.
View attachment 38759
I get your point... and it has some validity at face value... but look!!!!
upload_2016-5-5_9-13-57.png

I can draw on Microsoft Paint too!
 

Michael - Cleveland

Well-Known Member
Moderator
  • Thread Starter Thread Starter
  • #10
So, from what I'm hearing... it's the same as anyone else driving in a particular market:
you can eek out f/t min-wage earnings if you commit to driving 60is hours/wk... more with more hours...
but your fixed overhead starts at between $150-$250/wk. - before fuel expense.

That doesn't sound like "a lot" of money to me.
Profitable - yes... as long as you don't miss a week of driving... but not "a lot" of money.

Advantages?
No maintenance costs!! Probably worth $2,000/yr ($38/wk)
Maybe driving a newer car - even a hybrid like a Prius which can lower fuel cost by up to 50%.

Cons:
You can buy a Prius for under $10,000, drive it 100,000 miles over 2 years, spend the same $38/wk on maintenance and have the same fuel expense... then sell it for parts for $2,000. You end up spending $115/wk ($77 + $38).

Ok... I can see it working... just not being particularly profitable - or having any real world benefit.
So I guess it's a viable option for those who need it (and don't get stuck in a lease they can't use or don't need.
 
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saucy05

Well-Known Member
So, from what I'm hearing... it's the same as anyone else driving in a particular market:
you can eek out f/t min-wage earnings if you commit to driving 60is hours/wk... more with more hours...
but your fixed overhead starts at between $150-$250/wk. - before fuel expense.

That doesn't sound like "a lot" of money to me.
Profitable - yes... as long as you don't miss a week of driving... but not "a lot" of money.

Advantages?
No maintenance costs!! Probably worth $2,000/yr ($38/wk)
Maybe driving a newer car - even a hybrid like a Prius which can lower fuel cost by up to 50%.

Cons:
You can bu a Prius for under $10,000, drive it 100,000 miles over 2 years, spend the same $38/wk on maintenance and have the same fuel expense... then sell it for parts for $2,000. You end up spending $115/wk ($77 + $38).

Ok... I can see it working... just not being particularly profitable - or having any real world benefit.
So I guess it's a viable option for those who need it (and don't get stuck in a lease they can't use or don't need.
"a lot" is relative. For example, if you work at Mcdonalds flipping burgers, you probably earn $250 a week after tax. Unlike uber you can only work hours that they give you. If you uber in Los Angeles and willing to work 50 hours, you could earn around $700 after expense.

Now if you were used to earning 1k a week then uber is a downgrade for you.
 

HoldenDriver

Active Member
Advantages?
No maintenance costs!! Probably worth $2,000/yr ($38/wk)
Maybe driving a newer car - even a hybrid like a Prius which can lower fuel cost by up to 50%.
Therein lies the rub. What if you lose your transmission or engine? $2,000 is a very rosy estimate if you buy a high-mileage car and drive the heck out of it.

The problem with a $6,000 Impala is you might have to pay $1,000 to get it to pass inspection. Now you're at $7,000. Add in $6,000 ($2,000 per year for 3 years in maintenance) and you're at $13,000.

For $5,000 on the margin, you get a car that is newer - and if it needs new tires or something in excess of $250, you just return it. Plus if Uber deactivates you, you can just return it.

I have started to see how Xchange does pencil out. I still don't know if I like it. Unfortunately, you have to apply and pair it with a specific car before you can truly do the cost-benefit.
 

WheelsMcGee

Member
I am new here and am driving an exchange vehicle. I have a full time job for one of the major telecommunications providers in the us, however I have extremely poor credit. I was driving an old jeep before I ever even thought of driving for uber, then the jeep ended up with a blown motor. It would have cost me more to fix it then the jeep was worth so I scrapped it for a few hundred dollars. On my uber ride to the rental car place the driver told me about Xchange. Because of my horrible credit this was the only way for me to get into a decent vehicle without a huge down payment. I drive uber just enough to cover the $160 per week payment, sort of a penance to drive a 2015 Prius with less than 3000 miles on it. My regular job covers my regular expenses. It is working well for my particular circumstance, but I would only recommend it to someone in a similar situation.
 

BigMomma80

Well-Known Member
I would like to hear from anyone who has had an Xchange lease for more than 6 months:
Are you making any money?
What city do you drive in?
What does the lease cost you?
1- I am making a small profit. But it is far from the amounts Uber claims
2- Chicago, Illinois
3- $180 a week

I also opted for Business Class Full Coverage Insurance on my car as a VFH (Vehicle For Hire). Weekly break down is about $30 a week.
I spend about $100 a week (For 40 hours) in gas
My unlimited car wash package is $30 a month (About 7.50 a week) and I can wash/vacuum my car daily.

So I start every Monday with a negative ledger balance of about -$317.50. Anything I make past that each week is mine. So I generally end up with 200-250 in profit per week. So definitely NOT life changing money.
 

Michael - Cleveland

Well-Known Member
Moderator
  • Thread Starter Thread Starter
  • #17
1- I am making a small profit. But it is far from the amounts Uber claims
2- Chicago, Illinois
3- $180 a week

I also opted for Business Class Full Coverage Insurance on my car as a VFH (Vehicle For Hire). Weekly break down is about $30 a week.
I spend about $100 a week (For 40 hours) in gas
My unlimited car wash package is $30 a month (About 7.50 a week) and I can wash/vacuum my car daily.

So I start every Monday with a negative ledger balance of about -$317.50. Anything I make past that each week is mine. So I generally end up with 200-250 in profit per week. So definitely NOT life changing money.
omg - that's $5.63/hr. I am so sorry.
 

BigMomma80

Well-Known Member
omg - that's $5.63/hr. I am so sorry.
It's ok. I am making it work for now, while I am exploring how to make more in the industry. I will probably buy a car soon, and that will greatly reduce my overhead. When I do buy, I will make sure the new vehicle can do XL, and maybe even select, so I can make more per mile. Since Uber and Lyft are so misinformational about things, it really is all through trial and error. I set myself up as a business, with a P&L ledger. So I can learn how to lower expenses and overhead to increase profitability.

If you go into this with that kind of mindset, you have a far greater chance of being successful.
 

Michael - Cleveland

Well-Known Member
Moderator
  • Thread Starter Thread Starter
  • #19
It's ok. I am making it work for now, while I am exploring how to make more in the industry. I will probably buy a car soon, and that will greatly reduce my overhead. When I do buy, I will make sure the new vehicle can do XL, and maybe even select, so I can make more per mile. Since Uber and Lyft are so misinformational about things, it really is all through trial and error. I set myself up as a business, with a P&L ledger. So I can learn how to lower expenses and overhead to increase profitability.

If you go into this with that kind of mindset, you have a far greater chance of being successful.
Around $215 of your cots are fixed expenses... which means that if you could invest more of your time, while your per hour income might not increase, your profitability would go up substantially. (yeah, I know you know this)
If you could drive 80 hours/wk you should more than double your take home earnings. Of course, not everyone has the flexibility to devote driving 80 hours/wk. And that is my concern for people who sign up for this kind of lease... you end up having to drive a certain amount just to cover your fixed expenses.
 
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