3 ms·
>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
by 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=