Keep in mind that Uber automatically deducts your weekly lease payment from your earnings on the platform, which incentivizes you to drive for Uber at least enough to cover your payments. If you fail to make a weekly payment because you didn’t earn enough on the platform, Uber either rolls over the unpaid amount to the next week or gets in touch with you about the payment. At that point you have the option of paying through a bank account transfer, money transfer or another payment method.
It’s most convenient to drive for Uber at least enough to cover you weekly payment, as it’s time-consuming paying through other methods. Once you’ve made enough to cover that weekly payment, it doesn’t matter if you drive for Lyft or Uber, so it makes sense to keep both open and choose whichever one is busier or has higher prices at the time.
Is it worth it to lease a car through the Uber Xchange program? In most cases, the answer is no. The main benefit of the program is that it allows drivers with subprime credit to lease cars, but the drawback to that is significantly higher payments. Comparisons have found that when leasing a car through Uber Xchange, you pay more per week for a car that’s several years old than you would pay on an average lease deal for a new car. If you want to buy the car at the end of your lease, Uber usually sets residual values high, so you end up spending far more than the car is worth.
There’s also the fact that you’ll be at the mercy of Uber, or Lyft if you also drive for them. If Uber cuts prices, which has happened many times, you’ll be making less money per ride and needing to work longer hours to make your lease payments. Uber can also deactivate drivers from its platform at any time, which has happened to drivers who leased cars through Uber Xchange. If that happens to you, you’ll need to find a new source of income to pay for your lease.
You have the option of returning a car leased through the Uber Xchange program to Uber at any time after the initial 30 days. However, you will be on the hook for your remaining payments, so this can cost you quite a bit of money.
If you default on your Uber Xchange lease, Uber can repossess the car. They will usually give you several opportunities to catch up on your payments first, but if you don’t do so, then they’ll go through with the repossession. Since Uber has GPS installed in all of the cars it leases to drivers, it’s not difficult for the repo men the company uses to find a car.