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Lease to Own... What other option do I have?

Yoelie9312

Member
I have read a lot of the negative comments about leasing to own. But don't all options have Cons?
Correct me if I'm wrong, but shouldn't one consider ones own situation and based on that see if Leasing to Own is really "suicide" or is it perhaps ur only feasible solution?

My situation is the following:
-I just recently got my TLC license but have yet to start working because I don't have a vehicle.
-My Credit is in the low to mid 500s (BAD!)
-I have absolutely nooo money to put down.
-I don't want to commit to financing a car because what if God forbid something unforeseen happens and I can't cab any more or for a while? I'll be stuck with having to pay for that vehicle regardless which I know I won't be able to do cuz I have no other means of making THAT amount of money. (The car would end up getting repossessed and I would STILL have to pay it off)... That's IF I were able to finance.

Now, that being said... Other than paying more for the vehicle on a monthly basis and/or in the long run, what OTHER downfall do y'all see to this?
I have rental assistance so luckily I don't have to make a ridiculous amount of money.
I was considering it to be a good thing for me given my circumstances.
On top of it all, the LTO option doesn't have to be long term. I can use it a temporary solution until I fix my credit and save money to buy a Car. Go under the LTO instead of "renting" just to make lower weekly payments.
With the LTO if not really stuck with the car. U have the benefit of cancelling and returning the car at any point . My Uncle had a 2016 Toyota Avalon for about 18 months or under the LTO program so before he decided to turn it in and Finance a Navigator. No hassle at all... just took them bk their car and said I want out.
I could always rent out a shift for 250 and only come out of pocket $100, or 175 if I wanna be fair.
 

Hogg

Well-Known Member
Make sure there aren't mileage restrictions on any lease you look at. I drive around 5000 miles per month doing ridesharing full time.

The trick to actually making money is finding a car at the bottom of its depreciation curve. Like a 2006-7 Kia with 100,000+ miles on it. Spend a little money to fix anything wrong and ditch it in a year or so and buy a slightly newer one for $2000. You don't really need to finance something that cheap and you can probably resell it for as much as you bought it for when it ages out.
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #4
It sounds like you have already talked yourself into this bad idea but you would be better off forgetting about Uber all together and finding a job, taking public transportation to that job and repairing your credit.
Well I've been doing that for the past God knows how many years and it hasn't worked out for me. It can't possibly be as bad ass ur making it out to be. I've seen the outcome first hand 1. from a single mother that lives here in my building and 2. From my uncle that lived here in my house for over a year. Every cab driver I get in the car with I ask and they tell me they average over 1K a week working full time. If I make anywhere near that amount it will deff beat what I'm making now working part time retail making $300 every 2 weeks. I'm doing this because I need the flexibility and don't wanna work for anyone.
 

ShawnsUber

Well-Known Member
You are setting yourself up for failure. I know the truth hurts, it's still the truth.

Lease to own, I would think a better (notice I didn't say smart) idea would be to look at something like the xchange lease. Your only tied to the car for 4weeks plus two more once you give notice and your out of it.

With a lease to own your commiting yourself to a car at the same crazy rate as an xchange lease in most cases.

Neither is a "good" idea, but at least you can get out of something like the xchange lease.

Maybe you've mixed up the term lease to own with xchange. I don't know. My point is that ANY "lease" for doing ride share should absolutely be looked at as a disposable vehicle. You should have NO aspirations of ever "owning" a lease vehicle. Google "lease".
 
Last edited:

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #6
You are setting yourself up for failure. I know the truth hurts, it's still the truth.
How though? If anything the car can just be taken bk without it affecting my credit so just please explain what are the huge drawbacks other than the weekly payments? Maybe I'm missing something.
Like I said... my uncle was doing it paying $445 a week to be exact, yet managed to make enough money to support his family while they were in DR sending them money, payed for all the paperwork to bring them over, and saved enough to get and furnish an apartment before they got here. Idk maybe some of u guys are in a diff state were it doesn't work out. I'm in NYC, don't know if maybe that makes a diff.
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #8
$445 a week! Holy shit.

I'm not in NY, but I know that an xchange lease in Atlanta is ~$160 a week.
Yeah that's what he was paying for a Toyota Avalon. But still with what he was making he told me he would take home about $700+ Clean after the car payment, gas and other expenses for himself.
 

Shangsta

Well-Known Member
You are going to have to drive 65 to 70 hour weeks to make money on a lease. Also in NY commercial insurance is required and you will be paying for gas out of pocket.

As others have said you sound bent on doing this so I am not sure why you asked but its a loser unless you are willing to put in 12 hour days.

The best bet is to save a little money so you can buy a car for 3K or so. You will pay 3K within the 10-12 months on a lease anyways.
 

michael7227

Well-Known Member
I think you are going to need a 2011 in NYC. Start up costs here are $2-3k from what I understand. Plates, commercial insurance, inspections, etc. You cant just get away with a 2003 junker. Plus in NYC the roads are harsh so you want a reliable car I would think...
 

touberornottouber

Well-Known Member
The advice not to do it is probably the best advice. But if you are going to do it then I would do everything you possibly can to keep your costs as low as possible. That means the cheapest allowable and practical vehicle with the best gas mileage. The lower your costs the greater the chance of your success.

I would NOT do lease to own then either. Do just a lease. Chances are you won't be doing this for a year or longer. Don't believe me? Go to the forum section in your area and randomly choose a few posts from six months back. Then see what they are up to recently (click on their profile and read the most recent messages) Odds are you'll find quite a few quit Uber for one reason or another.
 

Uptoyou132

Active Member
I have read a lot of the negative comments about leasing to own. But don't all options have Cons?
Correct me if I'm wrong, but shouldn't one consider ones own situation and based on that see if Leasing to Own is really "suicide" or is it perhaps ur only feasible solution?

My situation is the following:
-I just recently got my TLC license but have yet to start working because I don't have a vehicle.
-My Credit is in the low to mid 500s (BAD!)
-I have absolutely nooo money to put down.
-I don't want to commit to financing a car because what if God forbid something unforeseen happens and I can't cab any more or for a while? I'll be stuck with having to pay for that vehicle regardless which I know I won't be able to do cuz I have no other means of making THAT amount of money. (The car would end up getting repossessed and I would STILL have to pay it off)... That's IF I were able to finance.

Now, that being said... Other than paying more for the vehicle on a monthly basis and/or in the long run, what OTHER downfall do y'all see to this?
I have rental assistance so luckily I don't have to make a ridiculous amount of money.
I was considering it to be a good thing for me given my circumstances.
On top of it all, the LTO option doesn't have to be long term. I can use it a temporary solution until I fix my credit and save money to buy a Car. Go under the LTO instead of "renting" just to make lower weekly payments.
With the LTO if not really stuck with the car. U have the benefit of cancelling and returning the car at any point . My Uncle had a 2016 Toyota Avalon for about 18 months or under the LTO program so before he decided to turn it in and Finance a Navigator. No hassle at all... just took them bk their car and said I want out.
I could always rent out a shift for 250 and only come out of pocket $100, or 175 if I wanna be fair.
Well based off your credit you will not have to worry about leasing. Go buy a cheap van and see how you do. Make sure it's in good shape and runs really good.
 

Shangsta

Well-Known Member
Well based off your credit you will not have to worry about leasing. Go buy a cheap van and see how you do. Make sure it's in good shape and runs really good.
Lease to owns allow you to have bad credit, infact many do not do a credit check but you have to pay a lot of money up front.

Other issues you should consider OP is with a lease to own you will get an older car, do you have money for maintenance? Lease to own cars come with no warranty. Car needs new breaks? New tires? Where will it come from
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #14
You are setting yourself up for failure. I know the truth hurts, it's still the truth.

Lease to own, I would think a better (notice I didn't say smart) idea would be to look at something like the xchange lease. Your only tied to the car for 4weeks plus two more once you give notice and your out of it.

With a lease to own your commiting yourself to a car at the same crazy rate as an xchange lease in most cases.

Neither is a "good" idea, but at least you can get out of something like the xchange lease.

Maybe you've mixed up the term lease to own with xchange. I don't know. My point is that ANY "lease" for doing ride share should absolutely be looked at as a disposable vehicle. You should have NO aspirations of ever "owning" a lease vehicle. Google "lease".
Well maybe I'm wording it wrong. It just might be an Xchange lease. Here in NY they call it lease to own in the dealership. It's from one of the "dealerships " in the Uber marketplace website.
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #15
Lease to owns allow you to have bad credit, infact many do not do a credit check but you have to pay a lot of money up front.

Other issues you should consider OP is with a lease to own you will get an older car, do you have money for maintenance? Lease to own cars come with no warranty. Car needs new breaks? New tires? Where will it come from
It's a brand new 2017 Toyota Camry. I think I might be confusing ppl when I say LTO but that's what they call it in the "dealership". And even on the Uber Marketplace website.
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #16
You are going to have to drive 65 to 70 hour weeks to make money on a lease. Also in NY commercial insurance is required and you will be paying for gas out of pocket.

As others have said you sound bent on doing this so I am not sure why you asked but its a loser unless you are willing to put in 12 hour days.

The best bet is to save a little money so you can buy a car for 3K or so. You will pay 3K within the 10-12 months on a lease anyways.
Yeah the insurance and everything is included in those payments. It's not so much that I'm set on it. It's that I don't seem to understand why so many ppl have a problem with what seems to be the best way to start for someone who has $0 to put towards getting a car and preparing it with the TLC registration and plates. The car comes prepared with everything and at any time I decide to return it I just have to give 2 weeks notice. Maybe they call it LTO here in NY and something else in other states. Something like Lease Xchage I believe I read.
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #17
Lease to owns allow you to have bad credit, infact many do not do a credit check but you have to pay a lot of money up front.

Other issues you should consider OP is with a lease to own you will get an older car, do you have money for maintenance? Lease to own cars come with no warranty. Car needs new breaks? New tires? Where will it come from
The program I'm talking about here gives it to you for $500 down, black car insurance included in the payments, brand new 2017 model, no credit check involved, and I can return it whenever I decide to as long as I give them 2 weeks in advance notice.
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #18
I think you are going to need a 2011 in NYC. Start up costs here are $2-3k from what I understand. Plates, commercial insurance, inspections, etc. You cant just get away with a 2003 junker. Plus in NYC the roads are harsh so you want a reliable car I would think...
Exactly. It's gonna be a Brand new 2017 Camry SE for 350 a week which includes the insurance and it comes ready with TLC plates and Registration. $350 a week. A lot of drivers here RENT A car for a 12 hour shift for 275. For less than $100 more I'm gonna have it 24/7 wich gives me the flexibility of working and stoping when I wish.
 

Shangsta

Well-Known Member
Thanks for clarifying. So for 375 a week lets say you spend 125 on gas a week since you are driving fulltime. Lets say you make 15 dollars an hour gross. If you drove 40 hours you would make about 600 dollars. 375 goes to your lease. 125 to gas. You make 100 dollars.

Is that worth it to you?
 

Yoelie9312

Member
  • Thread Starter Thread Starter
  • #20
The advice not to do it is probably the best advice. But if you are going to do it then I would do everything you possibly can to keep your costs as low as possible. That means the cheapest allowable and practical vehicle with the best gas mileage. The lower your costs the greater the chance of your success.

I would NOT do lease to own then either. Do just a lease. Chances are you won't be doing this for a year or longer. Don't believe me? Go to the forum section in your area and randomly choose a few posts from six months back. Then see what they are up to recently (click on their profile and read the most recent messages) Odds are you'll find quite a few quit Uber for one reason or another.
The reason Why I would do LTO is because the payment is cheaper and I can always get out of it if I wish. Don't know if I'll be doing Uber for long (don't think I will), however, I do plan on caving for a while. The license for it alone cost me close to $1k so yeah... I deff plan on doing it for a while. I think the big diff is that I'm in NY and everything works differently than other states. No other satiate has to deal with TLC. On that same token... I believe the work might be a bit more lucrative here because of the demand. I plan on also signing up with Juno, Lyft and VIA. Uber is not really the only option. Honestly I'm only signing up with them because of their large territory coverage (I can get calls from them if I'm out in any sorrounding states) and because they pay for the first 2 weeks of the car as long as u meet the requirements.
 
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