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> You don't lease a 15K car to someone at $800/month and lose money. It seems easy to imagine how you can: the driver rents the $15k car for 6 months, paying $
by calpaterson 9y ago
> You don't lease a 15K car to someone at $800/month and lose money.
It seems easy to imagine how you can: the driver rents the $15k car for 6 months, paying $4.8k in total before they stop making payments and Uber repossesses the vehicle. Uber hope to make themselves whole by selling it for $10.2k...except...they can't sell it for $10.2k because cars depreciate fast and anyway this one has 30,000 more miles on the clock than it did at $15k.
Only the cars initally cost $20k instead of $15k, Uber had to pay ~4% interest on the money they used to buy the car, the driver paid closer to $400 than $800, not all the cars are in fully working order and there are 40,000 cars.