Home / Auto / Uber’s Leasing Program Is Changing The Auto Loan Market

Uber’s Leasing Program Is Changing The Auto Loan Market

Uber has made a reputation for itself with its new tackle the taxi, however the firm has additionally not too long ago been making waves by shifting into the auto financing market. Final yr, Uber created a whole-owned subsidiary known as Xchange Leasing to assist Uber drivers and potential drivers get entry to a brand new automobile for low month-to-month funds. Uber drivers put down a $250 deposit, pay their month-to-month automobile insurance funds, and pay anyplace from $120 to $160 every week to lease the automobile. This cash is deducted from the driving force’s Uber funds.

Whereas this enables Uber’s drivers entry to new economic system or mid-sized automobiles, many have famous that the leasing funds are fairly costly, with most drivers paying round $600 a month to lease the automobile. Whereas these are new vehicles, many would be capable to purchase a used automobile for a decrease fee. For individuals who be part of the Xchange program after which determine the month-to-month funds are too excessive, Uber permits them to return the automobile with a two weeks’ discover. They lose the deposit, however they aren’t obligated to make any additional funds.

Xchange has accounted for a excessive variety of leasings in some areas. At one Nissan dealership in Chicago, for instance, Xchange made up 41 % of the dealership’s gross sales in Could. Because of Xchange, the dealership additionally doubled its 2015 quarter one gross sales in 2016.

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