# Many Thousands of Rideshare drivers defaulting on car loans



## FormerTaxiDriver♧ (Apr 5, 2018)

*A record 7 million Americans have stopped paying their car loans, and even economists are surprised*

Millions of Americans are struggling with their car payments, and even economists are surprised.

According to a new report from the Federal Reserve Bank of New York, more than 7 million Americans have reached serious delinquency status on their auto loans, meaning they're at least 90 days behind on payments.

https://amp.businessinsider.com/auto-loan-delinquency-number-record-new-york-fed-2019-2


----------



## TheDevilisaParttimer (Jan 2, 2019)

People spend above their means in a good economy instead of putting the money away for a rainy day.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Supposed to be making enough money to put away to begin with. What in the heck is going on???


----------



## Hopindrew (Jan 30, 2019)

FormerTaxiDriver♧ said:


> Supposed to be making enough money to put away to begin with. What in the heck is going on???


Absolutely right. I met someone the other day who drove rideshare but didn't even come close to making enough. Failing rideshare needs to go.


TheDevilisaParttimer said:


> People spend above their means in a good economy instead of putting the money away for a rainy day.


Rideshare pays sub sub low less than minimum wage. Can't make car payments on that


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Hopindrew said:


> Absolutely right. I met someone the other day who drove rideshare but didn't even come close to making enough. Failing rideshare needs to go.
> 
> Rideshare pays sub sub low less than minimum wage. Can't make car payments on that


Yep, and economists can't see this!


----------



## TwoFiddyMile (Mar 13, 2015)

It's pretty simple. Here in the South a driver is lucky to gross $100 per day. Gas $11. Various expenses $25. Now this genius rideshare driver has $74 to split on rent food and utilities.
The drivers who are defaulting on their car payment are in WalkAway mode. They are squirreling a few rubles away for whichever comes first, repo or de-activation.


----------



## SEAL Team 5 (Dec 19, 2015)

FormerTaxiDriver♧ said:


> Supposed to be making enough money to put away to begin with. What in the heck is going on???


Spending $200 a week on weed and downloads.


TwoFiddyMile said:


> It's pretty simple. Here in the South a driver is lucky to gross $100 per day. Gas $11. Various expenses $25. Now this genius rideshare driver has $74 to split on rent food and utilities.


Nothing wrong with getting a second job. Rideshare for $3k a month and flip burgers for another $2k a month.


----------



## cumonohito (Feb 13, 2018)

Math needs to be checked, but yes, it is a loosing proposition when you buy a brand new car and your only way to afford it is by getting another job.


----------



## dirtylee (Sep 2, 2015)

Layoffs are starting.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

dirtylee said:


> Layoffs are starting.


Where?


----------



## Daisey77 (Jan 13, 2016)

And this is exactly why we can't get financed for a vehicle. Lenders are flat out refusing auto loans as soon as they hear Uber or Lyft. Now for part-time drivers they have their other job to use for their source of income. Therefore they don't have to mention Uber or Lyft. Now for the full-time drivers, we got ourselves quite a dilema. We run our cars into the ground and are in need of a new one but can't get financed. Yet we need a car to make a living. 

I also think drivers quickly realize they cannot make a decent living off of basic X and Lyft. Therefore they get a vehicle that bad qualifies for higher platforms. Which in turn get some higher payments. Payments they are not used to and a lot of times under the misconception that increased earnings will offset the increased payment amount, without realizing they can literally be without a job by a click of a button. Then what? 

I'm curious if there is an increase in bankruptcy filings as well


----------



## TheDevilisaParttimer (Jan 2, 2019)

FormerTaxiDriver♧ said:


> Yep, and economists can't see this!





Daisey77 said:


> And this is exactly why we can't get financed for a vehicle. Lenders are flat out refusing auto loans as soon as they hear Uber or Lyft. Now for part-time drivers they have their other job to use for their source of income. Therefore they don't have to mention Uber or Lyft. Now for the full-time drivers, we got ourselves quite a dilema. We run our cars into the ground and are in need of a new one but can't get financed. Yet we need a car to make a living.
> 
> I also think drivers quickly realize they cannot make a decent living off of basic X and Lyft. Therefore they get a vehicle that bad qualifies for higher platforms. Which in turn get some higher payments. Payments they are not used to and a lot of times under the misconception that increased earnings will offset the increased payment amount, without realizing they can literally be without a job by a click of a button. Then what?
> 
> I'm curious if there is an increase in bankruptcy filings as well


All loan types view Uber and lyft as more risky than traditional jobs. If you are a full time driver then you need a larger down payment for a new car than someone with a traditional job.


----------



## Uberfunitis (Oct 21, 2016)

I did a rental until I had enough saved up in the bank in a separate account only funded with Uber earning to buy a vehicle. If all this turns bad and I decide it is no long something that I want to do I am not out any personal money and my business account is still positive. Almost enough saved to buy the next vehicle whenever that is needed as well.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Daisey77 said:


> And this is exactly why we can't get financed for a vehicle. Lenders are flat out refusing auto loans as soon as they hear Uber or Lyft. Now for part-time drivers they have their other job to use for their source of income. Therefore they don't have to mention Uber or Lyft. Now for the full-time drivers, we got ourselves quite a dilema. We run our cars into the ground and are in need of a new one but can't get financed. Yet we need a car to make a living.
> 
> I also think drivers quickly realize they cannot make a decent living off of basic X and Lyft. Therefore they get a vehicle that bad qualifies for higher platforms. Which in turn get some higher payments. Payments they are not used to and a lot of times under the misconception that increased earnings will offset the increased payment amount, without realizing they can literally be without a job by a click of a button. Then what?
> 
> I'm curious if there is an increase in bankruptcy filings as well


I'm Chapter 7 as of last week. I got a loan offer for another car in the mail along with the bankruptcy notice.


----------



## mbd (Aug 27, 2018)

It is not ride share drivers, but non ride share drivers buying cars they cannot afford , then they become part time ride share drivers, trying to pay off the loan. Once they default, they will become non U/l drivers. Good news.


----------



## BayArea Lyft Driver (Feb 26, 2015)

I saw a repo truck carrying an Uber Carolla this morning! I kinda felt bad.


----------



## Uberbrent (Mar 22, 2016)

They probably parked in the airport queue too long.


----------



## Daisey77 (Jan 13, 2016)

FormerTaxiDriver♧ said:


> I'm Chapter 7 as of last week. I got a loan offer for another car in the mail along with the bankruptcy notice.


Yep I'm one year out from discharge. Oh you'll get inundated with credit card offers and Car Loan offers. Credit card offer terms are horrendous though . If you can, find one that is halfway decent to start rebuilding your credit. The car loans, they can send you offers all day but when it comes time to go through financing , good luck. Bankruptcy and rideshare income is not good. Funny thing is, it's easier to get financed with a bankruptcy than it is driving for Uber.


----------



## UberLyftFlexWhatever (Nov 23, 2018)

SEAL Team 5 said:


> Spending $200 a week on weed and downloads.
> 
> Nothing wrong with getting a second job. Rideshare for $3k a month and flip burgers for another $2k a month.


Maybe necessary to cut back on self medicating

*https://www.lctmag.com/news/733008/...33H5858212E6B&ajs_trait_oebid=3671F9146356B0M*


FormerTaxiDriver♧ said:


> Supposed to be making enough money to put away to begin with. What in the heck is going on???


Rich are getting richer and poor poorer 
Nothing new here



Daisey77 said:


> Yep I'm one year out from discharge. Oh you'll get inundated with credit card offers and Car Loan offers. Credit card offer terms are horrendous though . If you can, find one that is halfway decent to start rebuilding your credit. The car loans, they can send you offers all day but when it comes time to go through financing , good luck. Bankruptcy and rideshare income is not good. Funny thing is, it's easier to get financed with a bankruptcy than it is driving for Uber.


.....Primarily because lenders anticipate someone in BK has Learned their lesson and will Run a Tighter ship. While uber drivers, Never Learn.


----------



## Uberfunitis (Oct 21, 2016)

UberLyftFlexWhatever said:


> .....Primarily because lenders anticipate someone in BK has Learned their lesson and will Run a Tighter ship.


Is there not a certain amount of time that is required between bankruptcies?


----------



## 1.5xorbust (Nov 22, 2017)

Uberfunitis said:


> Is there not a certain amount of time that is required between bankruptcies?


Minimum of eight years between Chapter 7 filings.


----------



## Uberfunitis (Oct 21, 2016)

1.5xorbust said:


> Minimum of eight years between Chapter 7 filings.


Yea a person just coming out of bankruptcy seems like a relatively safe bet in that case.


----------



## JustTreatMeFair (Nov 28, 2017)

FormerTaxiDriver♧ said:


> I'm Chapter 7 as of last week. I got a loan offer for another car in the mail along with the bankruptcy notice.


Pickup 2 Secured Credit Cards and a car a couple of years old, make all your payments on time and your credit score will be low 600-640 inside of 6 months after discharge.

Funnel as much extra money towards that car payment as possible with continued payments on time inside of 2 years you can buy a new one at best tier rates if you want to. You will also, after 2 years, be eligible for a new mortgage.

I have clients driving Brand New Cars, living in new homes 3 years after going chapter 7. Thousands of people spend years stressing over it all.

Of course.... All of them have real jobs paying reasonable money.


----------



## UberLyftFlexWhatever (Nov 23, 2018)

Uberfunitis said:


> Is there not a certain amount of time that is required between bankruptcies?


Ask POTUS


----------



## BurgerTiime (Jun 22, 2015)

It’s impossible to make ends meat when they continue to lower your earnings and upping their take. I barley driver anymore. I make way more waiting tables and a busboy cleans the mess left behind.


----------



## IMMA DRIVER (Jul 6, 2017)

Most rideshare driver's treat this gig like a job and get paid like an entry level employee. However; some full time driver's treat this gig as the owner of a business and get paid like a boss. 99% of rideshare drivers have never owned a business, done free lance work or have worked as an independent contractor. So they have no clue how to run a tight ship, work long hours, save for unexpected circumstances or handle their money properly when their weekly pay is inconsistent. Most who start rideshare do it because they hear it's "ez money." Then they go broke because no one informs them of the true costs of doing rideshare and how their $15K car will be valued at $0 in 12 months.


----------



## TwoFiddyMile (Mar 13, 2015)

IMMA DRIVER said:


> Most rideshare driver's treat this gig like a job and get paid like an entry level employee. However; some full time driver's treat this gig as the owner of a business and get paid like a boss. 99% of rideshare drivers have never owned a business, done free lance work or have worked as an independent contractor. So they have no clue how to run a tight ship, work long hours, save for unexpected circumstances or handle their money properly when their weekly pay is inconsistent. Most who start rideshare do it because they hear it's "ez money." Then they go broke because no one informs them of the true costs of doing rideshare and how their $15K car will be valued at $0 in 12 months.


Troof.


----------



## El Janitor (Feb 22, 2016)

This sounds like a great opportunity to create a new company. Uber repo all you need is a smartphone for the app, and a repo style wrecker. If you can't afford a $70k used wrecker we can help you qualify for a loan to buy one, even if you have bad credit.


----------



## The Entomologist (Sep 23, 2018)

Hello bubble!

Someone predicted this like 2-3 years ago in the forums.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Uberfunitis said:


> Is there not a certain amount of time that is required between bankruptcies?


Yes, Donald Trump went bankrupt three times! Now, the nation follows; so go figure.


----------



## Roadmasta (Aug 4, 2017)

Basic math, people are just stupid. Base rates are nothing more than using destination filter. If no surge don't drive and don't try to do this full time. It's called ride-sharing for a reason.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Roadmasta said:


> Basic math, people are just stupid. Base rates are nothing more than using destination filter. If no surge don't drive and don't try to do this full time. It's called ride-sharing for a reason.


I drove in *roach mode, *for a season until I was permanently banned by Uber over my third complaint. I think the specialized team seen they weren't making money off me from roaching around and long-hauling, so I was kicked just before I grossed enough to get a 1099. I very suspicious of UBER and LYFT both.


----------



## Pedro Paramo66 (Jan 17, 2018)

Daisey77 said:


> And this is exactly why we can't get financed for a vehicle. Lenders are flat out refusing auto loans as soon as they hear Uber or Lyft. Now for part-time drivers they have their other job to use for their source of income. Therefore they don't have to mention Uber or Lyft. Now for the full-time drivers, we got ourselves quite a dilema. We run our cars into the ground and are in need of a new one but can't get financed. Yet we need a car to make a living.
> 
> I also think drivers quickly realize they cannot make a decent living off of basic X and Lyft. Therefore they get a vehicle that bad qualifies for higher platforms. Which in turn get some higher payments. Payments they are not used to and a lot of times under the misconception that increased earnings will offset the increased payment amount, without realizing they can literally be without a job by a click of a button. Then what?
> 
> I'm curious if there is an increase in bankruptcy filings as well


----------



## Another Uber Driver (May 27, 2015)

Why does anyone think that Uber got rid of Exchange Leasing and stopped financing cars? It learned that drivers could not pay twenty first century bills on 1970s cab rates.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Earlier, I seen a brand new Nissan with a drive-out tag on it, with a Lyft amp on the dashboard. Dealerships try to lock in customers for 7 years before a car is paid off. Yeah, he is gonna do rideshare for 7 years in that car. 

:roflmao:


----------



## Pusher (Mar 7, 2017)

FormerTaxiDriver♧ said:


> Yes, Donald Trump went bankrupt three times! Now, the nation follows; so go figure.


We were headed toward BK long before Trump took office


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Pusher said:


> We were headed toward BK long before Trump took office


Bill Clinton was the best thing that happened to taxi drivers. Not only did he balanced the budget and developed a surplus, he suspended drivers licenses of non payers to child support! Don't forget about the Information Superhighway either.


----------



## UberLady10001 (Nov 4, 2017)

For a lot of ants this means they will be not only homeless, but carless. I personally know a driver who lives in her car.


----------



## Pedro Paramo66 (Jan 17, 2018)

UberLady10001 said:


> For a lot of ants this means they will be not only homeless, but carless. I personally know a driver who lives in her car.


I know at least 5 people living in the car plus myself, they use to sleep around the area I use to sleep
Lol


----------



## BurgerTiime (Jun 22, 2015)

Uber caused taxis to go bankrupt, then UberBlack drivers and now you’re next!


----------



## peteyvavs (Nov 18, 2015)

Do what the rich do, steal it.


----------



## UberLady10001 (Nov 4, 2017)

I hope things get better for you.


----------



## IGotDrive (Oct 8, 2018)

FormerTaxiDriver♧ said:


> *A record 7 million Americans have stopped paying their car loans, and even economists are surprised*
> 
> Millions of Americans are struggling with their car payments, and even economists are surprised.
> 
> ...


What's a "strong" workforce? A high employment with a very low per capita is not necessary a win. That's what seperates a 3rd world country from one that's not, not the percentage of people employed. That's why there are politicians bragging about unemployment rates while most people still seem to be struggling.



FormerTaxiDriver♧ said:


> Yes, Donald Trump went bankrupt three times! Now, the nation follows; so go figure.


He actually went bankrupt 6 times with 6 different companies. He's not helping anyone else's financial situation.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

IGotDrive said:


> He [Donald Trump] actually went *bankrupt 6 times with 6 different companies*. He's not helping anyone else's financial situation.


What are your sources?


----------



## IGotDrive (Oct 8, 2018)

FormerTaxiDriver♧ said:


> What are your sources?


You definitely asked me that without looking it up. You can look it up - there are numerous sources, and you can bring some other facts to dispute that if you can find them.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

IGotDrive said:


> You definitely asked me that without looking it up. You can look it up - there are numerous sources, and you can bring some other facts to dispute that if you can find them.


Okay, I'll do that for you.

*Sources*

Isidore, Chris. "Everything You Want to Know About Donald Trump's Bankruptcies."
_CNNMoney_. 31 August 2015.
Hylton, Richard D. "1991; Money Movers Caught in the Turbulent Times of the 90's."
_The New York Times_. 31 December 1991.
Harwell, Drew and Jacob Bogage. "What Trump Didn't Say About His Four Big Business Bankruptcies."
_The Washington Post_. 7 August 2015.
Parmley, Suzette. "A Troubled Empire: Trump Gambled on Junk Bonds, and Lost."
_Philadelphia Inquirer_. 11 August 2004.
UPI. "Trump's Castle and Plaza File for Bankruptcy."
9 March 1992.
Clary, Isabelle. "Trump Pulls Off Last-Minute Deal."
17 June 1991.
Parmley, Suzette. "A Troubled Empire: Trump Gambled on Junk Bonds, and Lost."
_Philadelphia Inquirer_. 11 August 2004.
Johnston, David. "Deal Protects Trump Plaza from Bankruptcy."
_Philadelphia Inquirer_. 6 April 1991.
_The New York Times_. "Trump Castle Refinancing."
9 March 1992.
Buettner, Russ et al. "How Donald Trump Bankrupted His Atlantic City Casinos, But Still Earned Millions."
_The New York Times_. 11 June 2016.
_The New York Times_. "Trump's Plaza Hotel Bankruptcy Plan Approved."
12 December 1992.
Bingham, Amy. "Donald Trump's Companies Filed for Bankruptcy 4 Times."
_ABC News._. 21 April 2011.
_Associated Press_. "Trump Casinos File for Bankruptcy."
22 November 2004.
Palmeri, Christopher. "Trump's Former Atlantic City Jewel Exits Bankruptcy, Now Icahn's."
_Bloomberg_. 26 February 2016.
Parry, Wayne. "Trump: Plaza and Taj Mahal Casinos Too Shabby to Bear His Name Anymore."
_Associated Press_. 6 August 2014.
McQuade, Dan. "The Truth About the Rise and Fall of Donald Trump's Atlantic City Empire."
_Philadelphia_. 16 August 2015.
Smith, Aaron. "Another Trump-Named Casino in Atlantic City Files for Bankruptcy."
_CNN Money_. 9 September 2014.
Stewart, Emily. "The Backstory on Donald Trump's Four Bankruptcies."
_The Street_. 15 September 2015.


----------



## IGotDrive (Oct 8, 2018)

FormerTaxiDriver♧ said:


> Okay, I'll do that for you.
> 
> *Sources*
> 
> ...


What does this mean? You're the one that wanted sources, and I'm not the librarian to bring them for you. Give me a break.

Oh...you actually thought that _I _was going to start looking through your sources? Lol, for real.


----------



## rideshare2870 (Nov 23, 2017)

This doesn’t surprise me. Here are some rules to avoid being in that situation. You can either:

• Drive what you already have

• Drive a car that’s 2-3 years above the cutoff year

• Buy a car that is 25% of your annual income or just don’t drive at all if you can’t do this if you need really need to buy a car

Furthermore, do not lease or rent, ever!! Also, pay cash for your car. This is not hard to understand, financing a 30K car to drive for 60 cents a mile with an annual income of 40k/year does not fit the formula! Think people!


----------



## Uberfunitis (Oct 21, 2016)

rideshare2870 said:


> This doesn't surprise me. Here are some rules to avoid being in that situation. You can either:
> 
> • Drive what you already have
> 
> ...


I rented a vehicle when I first started driving for uber and it worked great for me. It allowed me to save up enough cash to be able to buy a car using only Uber profit. Now if uber deactivates me or I have had enough my business account is still in the black. Almost have enough for the next car if I decide to keep going. Rentals can be a good start.


----------



## Fuzzyelvis (Dec 7, 2014)

IMMA DRIVER said:


> Most rideshare driver's treat this gig like a job and get paid like an entry level employee. However; some full time driver's treat this gig as the owner of a business and get paid like a boss. 99% of rideshare drivers have never owned a business, done free lance work or have worked as an independent contractor. So they have no clue how to run a tight ship, work long hours, save for unexpected circumstances or handle their money properly when their weekly pay is inconsistent. Most who start rideshare do it because they hear it's "ez money." Then they go broke because no one informs them of the true costs of doing rideshare and how their $15K car will be valued at $0 in 12 months.


It doesn't matter how you run your "business" if you're getting 60 cents a mile and your market no longer surges or gives out promotions. You cannot possibly get "paid like a boss" under those circumstances no matter what you do.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Fuzzyelvis said:


> It doesn't matter how you run your "business" if you're getting 60 cents a mile and your market no longer surges or gives out promotions. You cannot possibly get "paid like a boss" under those circumstances no matter what you do.


I wonder how many Uber and Lyft drivers have taken out *TITLE LOANS* on their cars?


----------



## Taxi2Uber (Jul 21, 2017)

FormerTaxiDriver♧ said:


> Bill Clinton was the best thing that happened to taxi drivers. Not only did he balanced the budget and developed a surplus, he suspended drivers licenses of non payers to child support! Don't forget about the Information Superhighway either.


Clinton was the worst President. The neglects and cost cutting to essential programs he made to balance the budget, resulted in all the negative things that have followed.


----------



## Derpdederpdederp (Mar 23, 2017)

Last summer I drove a former ride share driver. She told me she took out a title loan on her vehicle and couldn't pay the note and they took it. Not the brightest move.


----------



## rideshare2870 (Nov 23, 2017)

Uberfunitis said:


> I rented a vehicle when I first started driving for uber and it worked great for me. It allowed me to save up enough cash to be able to buy a car using only Uber profit. Now if uber deactivates me or I have had enough my business account is still in the black. Almost have enough for the next car if I decide to keep going. Rentals can be a good start.


How much are we're you paying? Most rental places I've seen have absurd prices.


----------



## tohunt4me (Nov 23, 2015)

SEAL Team 5 said:


> Spending $200 a week on weed and downloads.
> 
> Nothing wrong with getting a second job. Rideshare for $3k a month and flip burgers for another $2k a month.


Try $600.0 a month

Soon
Illegals will COME FOR THOSE JOBS ALSO!


----------



## Uberfunitis (Oct 21, 2016)

rideshare2870 said:


> How much are we're you paying? Most rental places I've seen have absurd prices.


Around 250 per week insurance included. two days driving and the car is paid for leaving 5 days for profit.



Taxi2Uber said:


> Clinton was the worst President. The neglects and cost cutting to essential programs he made to balance the budget, resulted in all the negative things that have followed.


I actually liked Clinton and I am not even a democrat.


----------



## FormerTaxiDriver♧ (Apr 5, 2018)

Derpdederpdederp said:


> Last summer I drove a former ride share driver. She told me she took out a title loan on her vehicle and couldn't pay the note and they took it. Not the brightest move.


What is she doing now for money?


----------



## touberornottouber (Aug 12, 2016)

ProTip: If you have no other assets to protect you can also usually do a chapter 7 bankruptcy and walk away from the car payment without any liability. It will often take a couple months from when you file for the bank to ask for the car back.

Usually even if you walk away from the payments or get your car repo'd you are still on the hook for the deficient loan amount. With a Chapter 7 bankruptcy it is usually different.


----------



## corniilius (Jan 27, 2017)

So glad to have a real job.


----------



## tez t (Mar 3, 2017)

BayArea Lyft Driver said:


> I saw a repo truck carrying an Uber Carolla this morning! I kinda felt bad.


]

not a Uber corolla!!!!


----------



## corniilius (Jan 27, 2017)

tez t said:


> ]
> 
> not a Uber corolla!!!!


Hey man, survival of the fittest


----------

