Is Uber’s Xchange Leasing program a good deal? Now that so many drivers are using this option, I wanted to see if it’s really a smart thing to do for drivers.
The first thing that you need to understand is Xchange Leasing is actually Uber’s second version of their leasing program, so don’t confuse it with Uber’s old, kinda crappy version of their leasing program called “Bama”. And they still have a new iterated version of that today, but their old leasing program that a lot of people, including myself, called predatory and was just a total piece of crap was called “Bama”.
Check out my video all about Xchange, then read the transcript below to see all of my points in writing.
What Xchange offers
Uber Xchange offers offers unlimited mileage, maintenance, but it is expensive. High level, that’s what ou need to know. Most leases I’ve seen with Xchange Leasing are actually in the $120 to $180 a week range. Now, you can go for a newer car or you can go for brand new cars or used cars, so obviously the new cars are gonna be closer to that $180 price point per week. And the cheaper cars, the used cars are going to be closer to the $120 a week.
You also need Rideshare Insurance, which you should probably already have anyways, but with the Xchange Leasing, it’s a requirement from Uber and from Xchange. That insurance will be in the $100 to $200 a month range. Check out my list of Rideshare Insurance options.
Our Top Tips for Drivers:
$600 – $1000/month: Is that worth it?
All in, you’re looking at anywhere from $600 to $1000 a month for an Xchange lease, depending on insurance and whether you go for a new or a used car.
You’re also responsible for gas, but they do cover the general maintenance, like oil changes. Six hundred to a thousand bucks a month is a lot for a car. You’re definitely better off financing the purchase of a used car. We haven’t done a super in-depth financial analysis, but I don’t think it takes a ton of research to figure that one out.
The Xchange lease might makes more sense when you don’t have the opportunity to buy a car, so I want to give you a few points to keep in mind if you’re looking into this program.
This is not a regular lease because you get unlimited miles
The first thing in my mind is that this isn’t a regular lease. So don’t compare an Xchange Lease to the $200, $300 a month leases you see on TV because those have mileage restrictions. This lease actually offers unlimited mileage. A full-time rideshare driver is easily going to put 1,000 miles a week on their car. You can’t do that with any normal lease. That’s one thing that bothers me is when I see people compare it to a normal lease. Xchange is expensive, but it’s like comparing apples to oranges. So if you’re on Xchange, you really should be putting on a ton of miles, and really taking advantage of that unlimited mileage because, frankly, you’re paying for it.
You only have to keep it for a month
Now, the second thing to keep in mind is that you have to keep the car for one month, and then you can return it anytime with a two-week notice for $250. The minimum term is one month and a half and $250 cash.
This lease is for full-time drivers
This is not a lease for someone who’s looking to do a few hours here and there. At $600 to $1000 a month, this is a lease for people who are looking to do full-time driving, someone who’s really looking to push the limit, around 50, 60 hours a week. So it’s not a good fit if you’re looking for part time work. And I’m going to say this for probably the fifth time in this video, but the Xchange Lease is expensive. If you’re taking advantage of the unlimited mileage and the fact that you don’t need very good credit, I think you can make it work. I’ve talked to a lot of Xchange Leasing dealerships and specialists, and they’ve told me that there’s a very low return rate, in the single digit percents.
So although they are expensive, it appears that the people who are doing these leases are keeping them and they’re not returning their vehicles. So hopefully you guys enjoyed this overview of Xchange Leasing. I mean, with a lease like this, it’s definitely important to track your profitability with these leases. So I want to give a quick shout out and recommend a product for that: QuickBooks Self-Employed app.
It actually helps you track the money coming in and the money going out too. As an independent contractor, you’re now a business owner. It’s your responsibility to log that mileage, expenses. QBSE does all of that for you within just one app. So, come tax time, you’ll actually save more and pay less in taxes. I think that’s something we all want. So, hopefully, you guys check that out, help support the site. Thanks for watching. Feel free to like, comment, subscribe, and as always, if you have any questions, don’t hesitate to reach out. Take care.
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