4 ms·
I agree that the entire enterprise might be a bad deal for buyers, BUT: - for those who returned the car after months, this is an option that just isn't availa
by URSpider94 9y ago
I agree that the entire enterprise might be a bad deal for buyers, BUT:
- for those who returned the car after months, this is an option that just isn't available in an ordinary lease - in some cases, death is not enough to cancel a lease. These folks would have been left making all of the payments on the car for the rest of the term. Plus, ordinary leases have very low mileage caps. They may not have made much money, but they would have lost thousands if they had a conventional lease.
- for those who keep the car say 3 years and put on 200k miles: they would pay a total of $18k and return the car with a couple thousand dollars of value. If the purchase price was say $22k, then they got a completely fair deal.
That's the thing - I don't think the terms were sub-prime at all, they were simply priced to only appeal to serious professional drivers working 50-60 hours and 1500 miles per week, which is not atypical for cabbies and limo drivers (mileage might even be low).
- tyingq 9y agoAhh, I see why we aren't on the same page. My reading was that the cars leased in this program were used cars, with values substantially less than $22k. https://www.uber.com/drive/vehicle-solutions/leasing/ https://www.uber.com/drive/vehicle-solutions/leasing/ "The majority of eligible vehicles will be pre-leased and/or pre-owned inventory"
- URSpider94 9y agoGiven Uber's pretty tight standards for cars, I would assume that these are late-model low-mileage pre-owned cars, which still hover i the $20k value range. I think they also wanted to reserve the right to re-lease cars that came back as early returns under the leasing plan.