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Lease-to Own, Can i make money in LA, Am i Crazy

Discussion in 'Pay' started by painfreepc, Aug 1, 2014.

  1. Oc_DriverX

    Oc_DriverX Well-Known Member

    Location:
    Orange County, CA
    Driving:
    UberX
    If $13.25/hr before expenses is what Uber thinks works, then I will be gone. I think the quality of their ride experience will disappear as well.
     
  2. veikveik

    veikveik Active Member

    Their primary goal now is to penetrate every major market and establish themselves.
    And when they do, and taxis are gone, they can do anything they want.
     
    grams777 likes this.
  3. grams777

    grams777 Moderator Moderator

    Location:
    Nashville
    It looks like the same thing as when Home Depot, Walmart, etc. came in and replaced local businesses and funneled those profits to Wall Street. When this is all said and done, the profits once made by local taxi companies will be redirected across the country to the big boys. The only jobs left will be the bottom level for minimal wages.
     
  4. Dave P

    Dave P Member

    The guy already said he doesn't have adequate credit to finance. Everyone keeps telling him to by a used, late model car. The weekly payment on the Camry Hybrid is $171 with sales tax. The Camry will save him around 50% on fuel costs. He's driving 6 days a week. He should save 30% of the lease's cost on federal tax (Income tax + self employment tax). This means he's effectively paying $121 per week. He will probably save that in gas. THIS CAR IS ACTUALLY FREE! (LOL) This is not a bad BUSINESS deal at all. You can't compare this lease to buying a late model used car because he doesn't have the credit. You can't compare it to a traditional lease because the annual mileage would murder him. A 12 hour Friday would pay for this car and the rest of the week would be gravy. If I could commit to 5 days a week, I would take this deal myself. The only thing that pisses me off is that the in Dash GPS is not even an option on the LE model being offered. I wonder if that will change on 2015 models?
     
    Last edited: Aug 5, 2014
  5. veikveik

    veikveik Active Member

    Local Taxis dont really stand a chance in this fight.
     

  6. veikveik

    veikveik Active Member

    Its still a risky thing to do. He can be deactivated over some bull****, and end up owning 20K plus
    VS
    buying a 2007-2008 car for like 8-10K.

    Just saying...
     
    grams777 likes this.
  7. veikveik

    veikveik Active Member

    Why do you need an indash GPS, when you can use an iphone with waze and up to the minute traffic, cop alerts, etc :)
     
    rayace01 likes this.
  8. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    i have two in dash cams, one points outside front window the other points inside car with audio, i will be ready for bull****.
     
    grams777 likes this.
  9. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    And just how long can use a 2007 used car on the uber system, how about the maintenance cost to keep this 2007 car running,

    with my bad credit score and limited down payment, i would be looking at a $400+ monthly payment for a car that gets
    20 to 24 mpg and may be can't use for uber 2 years from now.
     
    UberXNinja likes this.
  10. Jeff212

    Jeff212 Active Member

    I use a car that nada is less then 3k, runs perfect and has manual windows standard transmission and I rate 5 stars.... Never had anything but compliments on how nice my car is, how clean...... But if getting a new car works for you, go for it.. Get it, it is a risk and those who take them have lots to gain.... I am normally conservative on my risks and I know they have held me back in the past... If you have the confidence and it seems the work ethic I think it will work for you.... I know I ponder a new car weekly.... I am just hesitant which holds me back most of the time....
     
    Last edited: Aug 5, 2014
  11. Dave P

    Dave P Member

    Exactly Dude, the Camry lease is a smarter option. The only risk, as has been stated, is that you are at the mercy of Uber's deactivation policy, which at the moment has no recourse for the driver. There is no due process afforded drivers. Still, I don't think it's a huge risk.
     
    grams777 and UberXNinja like this.
  12. Bully

    Bully Active Member

    Location:
    Hell, NY
    He said he'll be using a dash cam, guy seems smart enough to know what he wants. Buddy, just make sure that whoever you lease the car from REPORTS TO THE BUREAUS! That will help you fix your credit and refinance the car in the future.
     
    UberXNinja likes this.
  13. Dave P

    Dave P Member

    I forgot that the early turn in penalty is only $1000 or less. That pretty much eliminates the Uber deactivation worry.
     
    rayace01 likes this.
  14. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    i have been trying to contact the dealer in Cerritios, CA that is working with the uber lease-to-own,
    i have a feeling the 40,000 unlimited miles is not unlimited if you return car before the 52 month lease.
     
  15. Dave P

    Dave P Member

    I don't think so. It's clearly an unlimited miles lease. The 40,000 expected use means that's what the lease costs are based on. That's why the payment is 3-4 times more than a traditional lease. What that means is that the vehicles values is expected to depreciate much faster. Usually, an unlimited mileage lease would include a balloon payment at the end of the lease. In this case, there isn't one. You own the car (well, you can buy it for $1 anyway). If the early termination fee allows you to turn the car in and get a newer model, for the cost of the ETF, that makes this an even better prospect.
     
  16. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    i think they assume that if you return lease car in lets say 24 months, that you will have used no more that 80,000 miles,
    if you return car with 100,000 miles used, they may ask for money to cover the 20,000 mile extra depreciation.

    the hours i drive, it may be more like 120k to 140k miles in two years.
     
  17. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    I saw the Santander Terms before, i believe they allow only 37,500 mi per year in lease, and do charge .20 per mile over that if you turn the car in early.

    Unless you buy the car, it could get expensive with the miles you are talking about.
     
    Last edited: Aug 5, 2014
  18. mp775

    mp775 Well-Known Member

    Location:
    Boston, Providence, and now Springfield!
    Driving:
    UberX
    There was a notice somewhere that the lease said 37,500 miles, but that the limitation was waived for Uber drivers. My question would be if that is still waived if your partnership is terminated during the lease.
     
  19. veikveik

    veikveik Active Member

    My 07 is paid for, and with the legal bull**** that local gov and states put up lately against Uber, I would not want any financial commitment of 20+ grand to drive for Uber.

    I always tell folks two things - if you have a good, stable job - do not quit and go ubering full time. Money simply isnt that great.

    and second - do not get into any financial commitment if you drive for uberX.

    Its simply too risky.

    But thats just me.
     
    mp775 and grams777 like this.
  20. veikveik

    veikveik Active Member

    And last thing - if you have never driven in a car for 60+ hrs a week, alteast try it for a few weeks.

    Its not that ****ing easy, or exciting. It gets boring fast.
     
    mp775 likes this.

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