Do you know of someone who needs a job, but even if he had a job, he doesn’t have a car to get to work? He can’t get a job because he doesn’t have a car, and he can’t get a car because he doesn’t have a job. This appears to be an impossible situation, but one company has come up with a possible solution.
There is a Solution:
I am not saying this is a perfect solution for everyone in the above situation, but it has the potential to help many. Uber, the leader in safe, inexpensive, and convenient personal transportation, has developed a lease program called Xchange Leasing. The purpose of the leasing program is to get more Uber drivers on the road. The person mentioned above can get a job driving for Uber and lease a car from them to drive. Of course, they will be subject to a background check and must have a good driving record. With Uber the driver sets his own hours, so with a vehicle at his disposal, the above person is free to find an additional job and drive for Uber in his free hours.
Advantages for Consumer:
- Drivers with no credit history or derogatory credit history may qualify.
- Payments are taken from your weekly earnings.
- The car may be used for personal driving as well as driving for Uber.
Disadvantages for Consumer:
- Interest rates are going to be high because of the increased risk of making loans to consumers with unstable credit. The rate may be comparable with those offered by online car title loans.
- If you are unable to drive for Uber because of illness or other reasons, you are still responsible for the payments.
How The Lease Works:
- Drivers put down a $250 deposit.
- The driver makes weekly payments to Uber for 36 months.
- Payments are automatically deducted from the drivers’ Uber pay.
- The lease covers unlimited mileage and routine maintenance.
- At the maturity of the lease, Uber keeps the initial deposit, and the driver is released from the lease.
- If the driver chooses to purchase the car, he must pay the balance due.
- After the first 30 days, the driver can choose to return the car at any time with two weeks notice, payment of all weekly charges while they had the car and forfeiture of the initial $250 deposit.
- Returning the vehicle prior to maturity of the lease will not impact the credit score.
For some people, this could be the perfect answer to their employment/vehicle problem. For others, it may not be. To read some real-life experiences with this program, go to Bloomberg.com.
If a person has a decent credit score, he will surely be able to get a better lease from a traditional vehicle lease company. This is not intended for that person, but if a person is stuck in a no job/no vehicle situation, this could be a win-win for them.
Wall Street seems secure enough about the Xchange Leasing program that in a deal headed by Goldman Sachs, they have secured a $1 billion loan to underwrite the program. Wall Street backs Xchange.