1. UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. Sign-up HERE!

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

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

  1. uberdriver

    uberdriver Well-Known Member

    Very well said. And as long as there will be new gullible people out there believing Uber propaganda to recruit them and not realizing the reality that you describe, Uber investors will be laughing all the way to the bank.
     
  2. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    UPDATE:

    my credit is not as bad as i thought, i have no charge offs, no repos, no bankruptcy, no evictions , last week i received my first credit card in 12 years, my credit score jumped from 483 to 598, today i applied for a auto loan at roadloans.com got approved for:

    Basic Offer
    Approval Amount $19,527
    Monthly Payment $475
    Annual Percentage Rate 26.29%
    Term (in months) 72Months
    *Minimum Down Payment $2,400
    OR
    Lowest Down Offer
    Approval Amount $17,826
    Monthly Payment $450
    Annual Percentage Rate 26.29%
    Term (in months) 72Months
    *Minimum Down Payment $1,600
    OR
    Lowest APR
    Approval Amount$ 23,842
    Monthly Payment $438
    Annual Percentage Rate 22.24%
    Term (in months) 72Months
    *Minimum Down Payment $6,500

    yes it's a very high rates, i will wait about two months to see if i can get credit score to 640+
    car i will try to buy is the honda fit
     
    grams777 likes this.
  3. UberPissed

    UberPissed Well-Known Member

    Location:
    Chicago
    Driving:
    UberX
  4. UberPissed

    UberPissed Well-Known Member

    Location:
    Chicago
    Driving:
    UberX
    I would find a job at Wal-Mart, save until you can find the least expensive vehicle that uber will allow you to drive for 2 years, stay working at your part time job, and then part time with uber. I only do it part time, I still enjoy the non-pay aspects of it, but it's a different story if you have a car payment due. Makes you a slave to uber. F that S.
     
    grams777 likes this.
  5. driveLA

    driveLA Well-Known Member

    I did the uber lease-to-own program with a camry hybrid le. I also drive in LA.

    I see a lot of people rag on the uber program. Yes the weekly rate is somewhat high but the lease has some advantages over a typical lease or even buying .

    The miles are unlimited. I see the car as a business investment that I can also use for personal use. Every dime I put into it is a tax write off in the end.

    I can turn in the car at any time. I really only see myself being interested in having the same car for 2 years or so. I don't mind paying the 800 or so fee it will cost to return the car by then. Which is dimes in comparison to what I would still owe on it. And then I will start the process all over again.

    Again. It is a business investment. It is only a bad deal if you really plan on keeping a car after putting all kinds of wear and tear and I'm not interested in that whatsoever.

    Now as far as whether you will make money. I haven't had any problem whatsoever making enough to cover expenses and make a profit . I only go out 4 or 5 days out of the week. I am able to cover the weekly payment and more from one 8 to 12 hour shift. The rest of the week is profit. My insurance payment is 100 a month that is easily taken care of. The hybrid is so good on gas iI hardly consider gas a costly expense. I spend less on gas driving for both work and personal than I did my other vehicle only for personal use.

    So yes. In LA it is possible to make good profits with the uber lease-to-own program. But it's completely dependent on your work/hustle. If you're working those 60 hour weeks youll probably make more money than me even. I have been working less than 40 most weeks and have been doing ok for my needs/plans.

    Again this is strictly speaking on the LA area. I would imagine it's not a good deal in slower cities.
     
    Jim S. and Ajay like this.

  6. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    If you return car before end of lease the mileage is not unlimited, you are capped at 40,000 miles per year, overage is $0.25 per mile.
    the mileage limit is the only thing that may stop me from doing the uber lease-to-own, i am a full time driver, 60 to 72 somes times 84 hours per week, i will easy do 60k+ miles per year, if return car in 24 months with 120,000 miles, the mileage overage will cost $10.000
     
  7. UberXNinja

    UberXNinja Active Member

    You must work for Uber. Or Santander. Is your name Travis?

    Just kidding dude. This lease makes a lot of sense for some people who live in the real world and see this strictly from a business standpoint. There are some good aspects to it. Yes, the payments are high, but the tax write offs make up for that.

    If you plan to sit at home in your underwear waiting for pings, and then reject 50% of them, don't get a new car for Uber. But if you really plan to work it, this is an option to consider.

    Having said that, I hope nobody is making their decisions to lease or not lease, or even to drive for Uber, based on the stuff they read on these forums, because as informative and educational as it can be, the bull **** can get pretty deep sometimes.
     
    SupaJ likes this.
  8. driveLA

    driveLA Well-Known Member

    Haha. Ya I've been reading these forums for over a month now since before I even decided to jump into uber and haven't really participated in the discussions much until now. I wanted to see what the work was like. There's a lot of misinformation and just overall bitterness from a lot of people on this site.

    The lease program works fine for my particular situation and business plan. And I see it working for most anyone that just goes out and puts in his/her hours and plans instead of just aimlessly going about it. I did see myself making 1000 on one particular week where I was going extra hard but I opted to stay in those last few hours of the pay period and settled for 900 that week. More than enough to cover the car payment and whatever else.

    So ya. Leasing can be profitable in LA or any other city that's relatively busy.
     
  9. SCdave

    SCdave Well-Known Member

    Location:
    LA / OC
    Driving:
    UberX
    Not sure if this will work for you but worth a try. Find a few credit unions in your area. Walk in and talk about opening up an account. Let them know that one of your goals is to purchase a new vehicle (can or don't have to explain why you want it). Go over your background and how they can help you finance your new vehicle. In the long run, a Credit Union could be a great financial institution for you to consider. Good luck. I know you are putting a lot of thought into this.
     
  10. driveLA

    driveLA Well-Known Member

    I don't know where you got your info but the 40,000 number is not a cap. It's mearly "anticipated" mileage. Also my contract mentions nothing about being charged miles for turning in the car. There is however a 500 dollar administration fee in addition to the 1000 dollar fee that goes down by a couple hundred each year that you have had the vehicle.

    To me the program is ideal for my long term plans.
     
  11. SCdave

    SCdave Well-Known Member

    Location:
    LA / OC
    Driving:
    UberX
    This isn't an argument but a suggestion. Call Santander and make sure you know all details about miles driven and turning in the vehicle prior to the end of the lease.

    Let's say that you turn in the vehicle at the end of 2 years
    a) There is an Early Termination Fee as you said, and
    b) There is an Administration Fee

    I can't see there not being a c) Mileage fee of 0.20-25 per mile driven over 80,000 miles like painfreepc pointed out.

    So guessing but you need to make sure 100% how this applies (I haven't read contract or called Santander) but would expect:
    1) No Mileage Fee if driven to end of 4 year lease with $1 buyout or turning it in.
    2) No Mileage Fee if turned in for example at 2 years/48 months and under 80,000 miles.
    2) Mileage fee added when turned in under early termination program and mileage is over "Anticipated Mileage". Then "Anticipated Miles" might be defined differently.

    I've read contracts were the first time I don't get it. The 2nd time I "think" I do. And the 3rd time I'm confused again.

    If you are happy you're 100% sure about this, great don't need to investigate further. If you aren't 100% sure, just better to ask for the exact costs of turning in the vehicle at the end of 2 years/48 months. Use an example with over 80,000 miles on the vehicle. If I want to terminate early at 48 months and I have 90,000 miles on the vehicle what will all the costs/fees be?

    You would also be helping out others to clarify this point.
     
  12. caspiy257

    caspiy257 Active Member

    Driving:
    Taxi
    a couple of weeks ago I met a guy who signed the Uber's lease-to-own contract for Prius V: $ 220 / week for 52 monthes. But, unfortunately, his account has been deactivated due to low rating. Now he is trying to make money with Lyft
     
    grams777 likes this.
  13. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    Go to the following sections of the uber lease-to-own contract:
    section 1. k
    section 1. l
    section 2. f
    section 5. f
    section 8. a
    section 8. c

    Click to Download -> uber lease to own contract
    or just call and have your uber id ready,
    ask to email you the contract.

    Santander Consumer Commercial Leasing Specialist
    Office (855) 433-1994
    Direct (214) 838-4917
     
    Last edited: Sep 4, 2014
  14. UberLuxbod

    UberLuxbod Well-Known Member

    Driving:
    UberLUX
    The OP was a Taxi driver for nearly 10yrs I thought.

    So he likely understands fully what long driving hours is about

    He just has no experience of UberX

    At least that is how I have read it, though I have only skimmed the thread so may be totally wrong
     
  15. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    Still waiting for your reply.
     
  16. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    Still waiting for your reply.
     
  17. BillyJoeJimBob

    BillyJoeJimBob New Member

    OP, ever read internet forums (sometimes for 15 years or more) with no intention of ever signing up to comment, but then you read something so horrific that you feel compelled to try to save a fellow human being from making an astonishingly BAD decision? Such is the case with me and this thread. Please, for the love of every financial principle in existence, do yourself a huge favor and do not do this deal. For one thing, leasing a car, for any reason, is the worst way to acquire one. Even financing a car is a horrible thing for your long term financial health. But to LEASE a car, then turn around and beat the crap out of it by using it as a taxi has got to be one of the riskiest options out there. Maybe I've listened to Dave Ramsey for too long and sound like an A-hole, but that's not my intent. Have you ever checked the for sale by owner cars+trucks on craigslist? Over the years I've seen numerous low mileage sedans that are in near perfect condition for sale, owned by older folks how've either recently passed away or went to a nursing home. I'm talking about 5 to 10 year old Buick sedans, Crown Vics (or anything on the Ford Panther platform - Grand Marquis, Town Car) , Taurus's, Avalons, etc. Basically, old people cars. They won't get as good of milage as a hybrid, but the initial cost is a tiny, tiny fraction of what you will pay to get a new Hybrid Camry. Plus the insurance is cheaper. Plus the interest is cheaper because there isn't any if you save up a few months and pay cash. It would take many decades to make up the cost difference in fuel savings. Plus, the particular type of cars I mention tend to be reliable and are quite cheap to fix when they do break.

    Again, I don't mean to sound harsh and I can tell that by the way you asked the question that you are a nice guy and just wanting opinions. I'd suggest checking out a blog called called Truth About Cars or car reliability aggregating site True Delta to get some inside information on which cars hit the sweet spot in terms of cost vs. dependability vs. cost of repairs when they do occur. Basically might want to stick with GM, Ford, Toyota, or Honda sedans or CUV's. Avoid the Germans/European manufactureres at all costs due to reliability and repair costs Avoid Chrysler products due to horrible reliability. Might be ok with a sedan from a smaller Japanese manufacturer like Subaru or Nissan or Mazda.

    As for advice on financing, I'd suggest avoiding debt at all costs. Might check into Dave Ramsey if you've never listened to his radio show or read his books.

    I know I'm going to get some flack for my opinions, but I'm a guy whose made many horrible mistakes both with finances and bad car purchases over the years and I just don't want to see someone else make some of the same dumb mistakes I've made if it can be prevented. Leasing a car is a bad idea. Driving an expensive car for Uber is a bad idea. Doing both at the same time is a horrible idea.
     
    painfreepc likes this.
  18. painfreepc

    painfreepc Well-Known Member

    Location:
    Fontana, CA
    Driving:
    UberX
    Yes! Who said you could talk to me? Have I got something on my face, soldier?

    Sorry, Edge of Tomorrow quote,
    My fav movie right now,

    I am not doing the uber lease, I have about $2500.00 right now, one of the things I am going is looking at cars on Craigslist.
     
    BillyJoeJimBob likes this.
  19. BillyJoeJimBob

    BillyJoeJimBob New Member

    Very groovy, very groovy. (Easy Rider quote). Those craigslist deals pop up all the time too, just gotta have cash on hand and reply to their ad's as soon as you find a good deal to look into. If a car has been on craigslist for more than a couple days, its not a good enough deal or else someone would have bought it already. :)
     
  20. ElectroFuzz

    ElectroFuzz Well-Known Member

    Location:
    Phoenix, AZ
    These are horrible.
    72months payments are really bad even at 3% APR
    Not sure when it's OK for someone like you to jump in but these are definitely not it.


    :(
     

Share This Page