Uber has given taxi companies a run for their money. The ride-sharing app allows almost anyone with a vehicle to make money on their own time by turning their personal vehicle into a taxi. But what if you don’t have your own car? But what if you don’t have your own car? Have no fear, Uber car is now leasing cars to people who want to earn money with the app but don’t have a vehicle of their own. But there are a few things you should know before you lease a car with Uber.
Here are five things to consider.
1. If You Lease a Car with Uber, it Can be Costly
Choosing between buying or leasing a car can be a tough decision. It is important to decide what’s best for you. But, please be aware, that if you do decide to lease a vehicle, it can be more costly than buying a car. Be sure to educate yourself of the costs associated with leasing a car with Uber.
One driver said he leased a car for $155 a week, but shortly after Uber lowered their fares. In turn, this lowered his income and made it almost impossible for him to pay his lease.
2. Like Any Car Leasing Agreement, an Upfront Fee Applies
If you decide to lease a car with Uber, an upfront fee does apply. Drivers leasing a vehicle with Uber must pay an upfront deposit of $250. Weekly payments will also apply based on what kind of car you lease.
3. The Leasing Program Caters to Those Rejected by Lenders
Uber’s leasing program, Uber Xchange, is a little more forgiving to those with poor credit. The monthly totals and interest rates may be higher than leasing a car through other lenders. Leasing a car with a dealership may costs up to $200 per month, but leasing through Uber costs around $130 weekly.
4. You Can Return the Car After 30 Days
After 30 days the first payment is due on a vehicle lease through Uber, the driver can choose to return the vehicle. The driver will not receive a refund of the $250 upfront deposit.
The option of being able to return the vehicle if Uber Xchange doesn’t end up working out is a flexible option. This may make people considering leasing through Uber a little more comfortable.
5. Rideshare Insurance Through Uber Xchange
If you decide to lease a car through Uber, there is an extra cost you should consider: rideshare insurance. Depending on which state you live in, you may need to think about the addition of rideshare insurance. In fact, there are many resources to help you figure out what type of insurance you will need.
Should You Lease a Car With Uber?
There are several things to think about before leasing a car with Uber to decide if it is the right option for you. Having low credit can be a real drag, but be aware, there are also options to help you improve your credit score.