Uber’s leasing program offers an excellent deal for drivers seeking to exchange their cars for a better and newer model. However, just like any other contractual transaction, you must understand all the grey before getting a good deal. Here are some tips on how to maximize the benefits in an Uber Xchange leasing deal.
Introduction to Xchange leasing
Uber set up a subsidiary company, the Uber Xchange leasing Program, set up to deal with the issuance of financial products to further increase their income by providing their drivers with in-house financial services.
To put it in one sentence: The Xchange leasing program takes on the risks of leasing where the driver pay’s them for their services through their Uber earnings.
Be sure you are using the Xchange leasing company. Uber also has a whole list of Uber Vehicle Solutions; they include dealership options such as BAMA and Santander leases. These are not part of the Xchange leasing program. Make sure you click on the Xchange leasing option under the Uber Vehicle Solutions page, or you will end up with a more expensive lease.
The Xchange leasing product
Xchange leasing offers some features that make it attractive:
- Unlimited mileage, which is extremely important for an Uber driver
- Cheap lease options for a pre-owned car, this can go as low as $98 per week.
- A comprehensive list of cars including UberXL
- A 2 week cut off notice (starting after 30 days of leasing), allowing the driver to cancel the lease
- Essential maintenance services that include: oil changes and tire rotations every 5,000 miles and air filter replacements every 25,000 miles.
- A fast and timely credit decision making process
Note: Xchange leasing is not a dealership, it is a legal framework arranging for you a car.
The basic car requirements:
- Ten years or newer
- No salvage title
- Four full-sized doors
- Minimum of 5 seat belts (driver and four passengers)
The list of cars include only these models:
- CHEVROLET: Cruze
- FORD: Focus
- HONDA: Accord, Civic, Fit
- HYUNDAI: Elantra, Sonata
- NISSAN: Altima, Maxima, Sentra, Versa
- TOYOTA: Camry, Corolla, Prius, Yaris
Lease requirements made simple by Xchangeleasing:
- The lease is for 36 months only,
- There is a downpayment of $250
- Not all applicants will be approved; if you have one of the following, do not apply:
- A repossessed vehicle within the last 12 months,
- A pending bankruptcy,
- A discharged bankruptcy within the last 12 months.
- You must sign a “payment deduction authorization agreement.”
- The Xchange Leasing program is not available in all cities.
- Weekly payments do not include taxes, fees, and license.
- The majority of eligible vehicles will be pre-leased and pre-owned inventory.
- There is a 30-day return notification period when returning a car before the end of the contract.
- There is also a $250 early release from contract fee to be paid.
The Xchange program comes with some interesting add-ons, such as Xchange Access which is a second-tier offering. Xchange Access means that when someone returns their leased car before the time is up (36 months), you have an option to take that lease over.
The dealership challenge
Once the Xchange leasing program has approved you-you will need to find a car. It gets complicated here and where it is essential to read all our tips.
Tip #1: Remain patient, don’t rush to buy the first car you see. Finding the perfect car solution for you is about seeking the right vehicle from visiting many dealerships.
Tip #2: Don’t be taken in by all the dealership BS. Dealers want to make as much money as possible from every deal, which is OK, but it shouldn’t come at your expense.
Tip #3: Dealers will try to stop you from buying a used car, explaining that used cars are not part of the Uber Xchange deal. That’s not true. Xchange leasing allows drivers to buy used cars, recognizing the benefits of economic prudence.
Tip #4: Dealers will try to sell you cars with less market value, this is due to Uber’s 105% payment of the blue book lending value only. For instance; Honda and Toyota will sell at a higher price than 105% so dealers will try to dissuade you or refuse to sell you these brands. Kia, Chevy, and Hyundai sell less than 105% so these will most probably be more readily available. Don’t be put off, see Tip#1, keep on trying until you find the car you wanted.
Tip #5: Don’t be fooled by their insistence that their lease program is cheaper than Uber’s. The unlimited mileage in Uber’s Xchange lease program is a game changer. Since most Uber drivers gobble up their miles, other leases with mileage cap will cost much more in the long run. Another issue is the maintenance fees, where Uber gives certain free maintenance, these all add up to significant savings.
Tip #6: Never put the $250 downpayment down until you have decided on a car. Some dealerships will try to take you “hostage” by asking for the downpayment until you find a car in their lot.
Tip #7: Don’t stick to one dealership. Dealerships that might seem friendly and adopt you like a long-lost son/daughter, but in fact, all they are interested in is profit turnaround, so go to as many dealerships as possible, and look for the car you want, not the dealership that appeals to you. The dealer is not important, your car is. The dealer is constrained to the Xchange Lease program, so whether they are nice or not is irrelevant. Don’t let your emotions cloud your judgment.
Tip #8: Once again, patience. Read this comparison chart between Uber Xchange Leasing and Traditional Leasing; it will show you the significant differences. That is why waiting for the right car, going to many dealerships will eventually win out.
Mileage Unlimited - Early return $250 deposit fee - Maintenance Periodic - Upfront cost $250 (You can trade this for the early return fee)
8,000-12,000 per annum - Early return thousands of dollars in early termination penalties. - Maintenance None - Upfront cost usually an upfront deposit of one or two months lease value as well as processing fees.