2 ms·

The drivers bought the cars in open market and the dealers steered them to higher end cars, the article said. Pick the car in the middle of the range from http

by ww520 9y ago

The drivers bought the cars in open market and the dealers steered them to higher end cars, the article said. Pick the car in the middle of the range from http://toyotanews.pressroom.toyota.com/releases/2014+toyota+corolla+pricing.htm http://toyotanews.pressroom.toyota.com/releases/2014+toyota+... the car costs about $19,000. The finance cost is $871, https://goo.gl/YozEwy https://goo.gl/YozEwy. Administrative cost: Uber has 500 employees running the lease program (TFA said 500 would be laid off if it ended). 500 employees X $60,000/employee-year X 2.5 years = 75 millions, to run the lease program for 30 months. Uber has 40,000 cars in the program, so 75M/40000 = $1,875 per car for admin cost. The car cost plus finance cost plus administrative cost: $19,000 + $871 + $1,875 = $21,746. With the figure you have ($11,800) for the money Uber gets, the loss is $11,800 - $21,746=-$9,946. It is near $9,000.

jaclaz 9y ago
>With the figure you have ($11,800) for the money Uber gets, the loss is $11,800 - $21,746=-$9,946. It is near $9,000. Good, but then almost every car was given back within the "shorter" term of six month. And the 122 dollar per week might actually been higher for a higher initial amount. With the new calculations (your higher cost but also the higher resell value JshWright suggested at the end) the full cycle would be (adding also the "basic maintenance" 20x100): 130x122=15,860+6,000+2000=23,860 The "normal" cycle is still short of US$ 2,114 per car, which means, that given that there are ONLY "full cycles" and "short cycles" 2014 Corolla's in the "fleet", that you need 7 "short cycles" every 1 "full cycle" to get a US$ 9,000 average. 7x9,946= 69,622 1x2,114= 2,114 69,622+2,114=71,136 / 8= 8,967 So if 7 out of 8 cars/financing went bad, then the theory that it is suicide to finance people with no or bad credit (or maybe that the income from Uber service had been grossly overestimated) seems like a valid one. Resell value=

by ww520 9y ago

jaclaz 9y ago

>With the figure you have ($11,800) for the money Uber gets, the loss is $11,800 - $21,746=-$9,946. It is near $9,000. Good, but then almost every car was given back within the "shorter" term of six month. And the 122 dollar per week might actually been higher for a higher initial amount. With the new calculations (your higher cost but also the higher resell value JshWright suggested at the end) the full cycle would be (adding also the "basic maintenance" 20x100): 130x122=15,860+6,000+2000=23,860 The "normal" cycle is still short of US$ 2,114 per car, which means, that given that there are ONLY "full cycles" and "short cycles" 2014 Corolla's in the "fleet", that you need 7 "short cycles" every 1 "full cycle" to get a US$ 9,000 average. 7x9,946= 69,622 1x2,114= 2,114 69,622+2,114=71,136 / 8= 8,967 So if 7 out of 8 cars/financing went bad, then the theory that it is suicide to finance people with no or bad credit (or maybe that the income from Uber service had been grossly overestimated) seems like a valid one. Resell value=