# Uber Lease Program Details



## DC_Share_Driver (Nov 24, 2014)

Recently I found that I need another automobile. So I decided to visit a Chevrolet Dealership to review the Santander Lease Program. It is 100% garbage, the total of payments is double the price of the car. 

Does Anyone have details on the new program Uber may offer??? 

I would like to wait, but need another car soon.


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## DC_Share_Driver (Nov 24, 2014)

Here is more detail regarding the current Santander Lease Program. 

Basically it is a 224 week lease (4 years and 4 months). To figure out your total payments multiply the payment they quote you by the number of weeks. You will have payments for 52 weeks at a higher amount then your payment will decrease by a few dollars for the remaining weeks. 

For a car that was 20,865.00 the weekly payment for the first 52 weeks was $180.00 and the payments for the remaining weeks was $160.00. The total of payments was $36,880.00. You can pay extra, but that does not help reduce your balance. Also I was putting $2,000 down. instead of $1,000.00 so I would have equal payments through-out the lease. 

- Uber will place a GPS tracking unit in the car allow 3 - 5 days for installation. 
- You are renting the car at a set amount, so making extra payments does not reduce your interest expenses. 
- You have to get your bank to contact Santander to obtain your payoff amount for the lease. 
- You are signing a contract to pay every week for this vehicle. 
- Santander will call you to discuss the terms and review the contract, a representative will be available to answer questions. 

After hearing the terms and the payments I decided to leave the dealership. I work a full-time job and work for Uber part-time. If I continue to work hard, I will improve my financial status within the next 2 months. I'd rather wait then get into financial trouble with the Santander lease. 

One thing I do not understand is... Why doesn't Uber offer the drivers a fair loan at a decent rate? 10 - 14%. Uber is automatically taking the money from our account on a weekly basis. Offer help with Financing and allow drivers to pay extra and reduce their loan balance. 

If the product is our cars, and we interact with the customers and are the face to the brand, Why not offer Drivers a Fair Deal???


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## Roogy (Nov 4, 2014)

Only a total fool would least thru Uber/Santander. They get you by the balls, can lower rates to 50 cents a mile and they know you will be out there driving 60 hrs per week just to cover your lease payment.


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## unter ling (Sep 29, 2014)

Uber will place a gps tracker in the car. I hadnt heard that one before.


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## painfreepc (Jul 17, 2014)

Roogy said:


> Only a total fool would least thru Uber/Santander. They get you by the balls, can lower rates to 50 cents a mile and they know you will be out there driving 60 hrs per week just to cover your lease payment.


Your credit is shit, just like my credit, 14% interest sounds great, so why did you not go get a loan at that rate, oh that right your credit sucks and you don't have a big down payment, just like me,

You can call santander directly yourself and get the loan pay off amount, I also had the $2,000, I only put down $1,000, I put the other $1,000 + $200 on secured visa card to rebuild my credit, at the end of this year I will try to refinance my car, is it hard knowing I need to make $173 each week just to pay for my car?, yes it is, but I have a new car that gets 40 mpg, so I will deal with the $173 a week payment till the end on this year, I am not worried about uber lowering rates, I have other options.


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## UberHustla (Dec 2, 2014)

DC_Share_Driver said:


> Here is more detail regarding the current Santander Lease Program.
> 
> Basically it is a 224 week lease (4 years and 4 months). To figure out your total payments multiply the payment they quote you by the number of weeks. You will have payments for 52 weeks at a higher amount then your payment will decrease by a few dollars for the remaining weeks.
> 
> ...


I'm sorry. I could swear you said $180 per WEEK? What kind of car are you getting, an Escalade?


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## painfreepc (Jul 17, 2014)

UberHustla said:


> I'm sorry. I could swear you said $180 per WEEK? What kind of car are you getting, an Escalade?


Can you read, it's $160 a week, not $180


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## UberHustla (Dec 2, 2014)

painfreepc said:


> Can you read, it's $160 a week, not $180


Oh well that changes everything. Thanks!


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## painfreepc (Jul 17, 2014)

UberHustla said:


> Oh well that changes everything. Thanks!


You are welcome, anytime.


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## chi1cabby (May 28, 2014)

DC_Share_Driver said:


> Uber will place a GPS tracking unit in the car allow 3 - 5 days for installation.





unter ling said:


> Uber will place a gps tracker in the car. I hadnt heard that one before.


It's a Remote Shut Off & GPS Tracking system, so that Santander can repo the car if you are deemed in loan default.

__
https://www.reddit.com/r/uberdrivers/comments/2rzq7g


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## unter ling (Sep 29, 2014)

chi1cabby said:


> It's a Remote Shut Off & GPS Tracking system, so that Santander can repo the car if you are deemed in loan default.
> 
> __
> https://www.reddit.com/r/uberdrivers/comments/2rzq7g


 Thanks chi1cabby, you are a legend.


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## chi1cabby (May 28, 2014)

unter ling said:


> Thanks chi1cabby, you are *a legend*.


You are welcome...But I'm not sure about the legend part as I'm real and not mythical, and I'm still around not passed on.


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## UberHustla (Dec 2, 2014)

chi1cabby said:


> It's a Remote Shut Off & GPS Tracking system, so that Santander can repo the car if you are deemed in loan default.
> 
> __
> https://www.reddit.com/r/uberdrivers/comments/2rzq7g


Why would they have to repo the car, when $160-$180 per week is so reasonable...


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## chi1cabby (May 28, 2014)

UberHustla said:


> Why would they have to repo the car, when $160-$180 per week is so reasonable...


Sorry it's hyperbolic & rhetorical but...
Why did the slave masters whip & shackle the slaves, and why did the slaves uprise after all the slave masters were providing the slaves with shelter & sustenance?


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## UberHustla (Dec 2, 2014)

Maybe the people who signed those wacky leases are going to be living in their cars soon? That's one way to beat the repo man I guess


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## Schulz (Nov 25, 2014)

I called Santander and asked them to send me the lease. The helpful clerk who answered the phone asked for my Driver ID number and then sent the lease contract to me by email within 10 minutes.

If you have bad credit and no job, but you have 1K, what other choice do you have if you want to drive for Uber? None that I know of. One thing that might work: Drive for Uber part time, and always stay active. Get a full-time job, and use your debit card to pay Santander each week the shortfall between your Uber earnings and the lease payment, if any.

It's a bad lease for this reason alone: Your lease is void if you stop working for Uber for any reason. BS!


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## UberHustla (Dec 2, 2014)

Schulz said:


> I called Santander and asked them to send me the lease. The helpful clerk who answered the phone asked for my Driver ID number and then sent the lease contract to me by email within 10 minutes.
> 
> If you have bad credit and no job, but you have 1K, what other choice do you have if you want to drive for Uber? None that I know of. One thing that might work: Drive for Uber part time, and always stay active. Get a full-time job, and use your debit card to pay Santander each week the shortfall between your Uber earnings and the lease payment, if any.
> 
> It's a bad lease for this reason alone: Your lease is void if you stop working for Uber for any reason. BS!


So what if you are deactivated for poor rating (as an example)? Do they take the car back? What about your credit?


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## DC_Share_Driver (Nov 24, 2014)

UberHustla said:


> I'm sorry. I could swear you said $180 per WEEK? What kind of car are you getting, an Escalade?


Hi Uber Hustla, not an Escalade, at that price you would think that's what I'm getting..... 
For 160 week or $640 per month.... The Chevrolet Cruze.


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## UberHustla (Dec 2, 2014)

DC_Share_Driver said:


> Hi Uber Hustla, not an Escalade, at that price you would think that's what I'm getting.....
> For 160 week or $640 per month.... The Chevrolet Cruze.


I'm just curious what would happen if Uber dropped you for whatever reason? Let's say it was due to your rating being at 4.6 for example. Was this discussed when you signed up for it?


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## Actionjax (Oct 6, 2014)

UberHustla said:


> I'm just curious what would happen if Uber dropped you for whatever reason? Let's say it was due to your rating being at 4.6 for example. Was this discussed when you signed up for it?


You must give the car back. This lease has a single purpose. Working for Uber. You get kicked of the system you must return the car. Also you will be responsible for the default payment depending on where you are on your lease. Highest I seen is $1000 for the first year and it goes down from there.

Your Credit should not be effected unless you don't pay. Any credit/lending company can add to your credit file as needed. But it's up to them and the policy they have.


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## painfreepc (Jul 17, 2014)

DC_Share_Driver said:


> Hi Uber Hustla, not an Escalade, at that price you would think that's what I'm getting.....
> For 160 week or $640 per month.... The Chevrolet Cruze.


When you find a 2015 escalade for $640 per MO, let us all know, so we can get one,
2015 Cadillac Escalade, msrp base price $72,970,
No tax @ 1% interest for 52 months = $1,434 per month


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## UberHustla (Dec 2, 2014)

painfreepc said:


> When you find a 2015 escalade for $640 per MO, let us all know, so we can get one,
> 2015 Cadillac Escalade, msrp base price $72,970,
> No tax @ 1% interest for 52 months = $1,434 per month


Wow if you went through Uber for that truck it would be about $4000 per month lol


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## ElectroFuzz (Jun 10, 2014)

*The Uber driver life cycle*
designed by Uber.

- You start out with your own car.
- Things are cool.
- Rate cut..... you keep driving
- Rate cut..... you cuss but keep driving
- Rate cut.... now you are actually losing money but you can't stop driving.
You try to convince yourself, that it is OK and you are still making something and that's better then nothing,
besides you must keep that cash flow, you must get that next deposit.
You convince your self that the $0.57 cost the IRS suggests is way to much, you can do better.
You don't want to think about the future, you do not want to put aside money for that major repair, tires,
and that major money for replacing the car one day.
Heck you are in emergency mode, you can not possibly worry about what will happen
2 years from now (when it's time to replace the car), you must worry about next month first.

So you keep driving, at a loss.
-This is very valuable to Uber.
You are basically financing them with your car equity and your time.
You are subsidizing their cost making them look more profitable then they really are
You help them subsidize the rates for the passengers so they gain tremendous market share.
All this help from you will make them billions of dollars when they release that IPO.
$41 billion currently to be exact but they want more... of course.

If you were to conduct proper accounting, you would have put half of that $0.57 aside
so by the time you have to replace your car, you have the cash on hand to get at least the same
value of car and millage then when you started out.
But you didn't and now you need a car fast so you can drive more.

As we can see you are very important to Uber, you enable them to make billions from
thousands like you who subsidize and enable Uber.
You are it!
They want you to keep driving.
So to make this happen they team up with the loan-sharks of the car world.
They hook you into these subprime car loans where not only you pay double
you are in essence become slave to it.
Now you really need to keep driving to make those weekly payments.
You are now in super-emergency mode, no more thinking at all, just drive and drive and drive.
Now even if you want to quit it will be very hard without going bankrupt.

You say **** it, I am returning the car.... only to find out
that you will need to pay $1000 early termination fee.

But wait there is more, you drove more then 40,000 mile last year
so now you find out that the "unlimited miles" are only valid if you keep the car
for the entire term so now you need to pay any overage at a rate of $0.20-$0.25 per mile (car depended)

But wait there is more, you happen to return the car after 1 year and 9 months
and now you find out that the years are not pro-rated, so no millage allowance for the 9 months.
You drove 1 year you are allowed 40,000 miles
You drove 1 year and 9 months you are still allowed only 40,000 miles
So pay up, $0.20-$0.25 per mile for those 9 months or any other miles above 40,000

But wait there is more,
(this part has no precedent so far but if you read the lease contract carefully this is a possible scenario)
You say OK ... OK... forget it, I will keep driving.
But the originator of the lease can simply say, no I want the overage miles paid up now.
You then have 14 days according to the lease to come up with the money or they can legally repo the car.

It's a slow sinking ship where the end result is always the same.
You end up bankrupt and they end up with billions.

Be careful out there.
Do not drive for a loss
Do not play with loansharks


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## Roogy (Nov 4, 2014)

I can hear some of the uberx drivers stuck in this cycle saying: "but but but if da paxengers would just give me teeeeps"


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## Nooa (Dec 30, 2014)

Just heard this 
" that uber is trying to utilize Avis / Hertz un rented cars on the lot. They are asking the rental companies to rent out their cars for $10/15 per day . So people can rent them and come work for uber "

I wouldn't put it passed them.


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## painfreepc (Jul 17, 2014)

ElectroFuzz said:


> *The Uber driver life cycle*
> designed by Uber.
> 
> - You start out with your own car.
> ...


I have other options, that I will not and can not talk about here, sorry if you guys think uber/lyft/sidecar (Yes I do all three) is the only transportation game in town, have a nice day.


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## DC_Share_Driver (Nov 24, 2014)

UberHustla said:


> I'm just curious what would happen if Uber dropped you for whatever reason? Let's say it was due to your rating being at 4.6 for example. Was this discussed when you signed up for it?


Hi UberHustla, I did not sign-up for the program. I ran out the dealership. I'm not sure what will happen if your rating falls below a 4.6 or if Uber is unhappy with your acceptance rate.


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## painfreepc (Jul 17, 2014)

Any of you wonder how santander feels about uber lowering rates, santander is a partner of uber, there is a shit load of uber driver's with lease-to-own cars, I was at the Ford dealer three times, the phone never stops ringing about inquiries for the uber car deal, when I picked up my car three others were also picking up santander cars, if i was running santander, I would be pissed.


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## Schulz (Nov 25, 2014)

Actionjax is right. I have a copy of the lease and the moment you don't work for Uber for any reason, the lease is void and you have to either buy the car from the Santander company or return it.


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## unter ling (Sep 29, 2014)

chi1cabby said:


> You are welcome...But I'm not sure about the legend part as I'm real and not mythical, and I'm still around not passed on.


 In Australia anyone who does good things or deeds is allowed legend status, for the forum however i will give you the title of living legend. I think its too early to award with god like status. Lol


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## ElectroFuzz (Jun 10, 2014)

painfreepc said:


> Any of you wonder how santander feels about uber lowering rates, santander is a partner of uber, there is a shit load of uber driver's with lease-to-own cars, I was at the Ford dealer three times, the phone never stops ringing about inquiries for the uber car deal, when I picked up my car three others were also picking up santander cars, if i was running santander, I would be pissed.


I don't know how they feel about it but I must wonder:

- Is it possible that Santander will make even more money if you turn in the car early?... even if they have to reposes?

- Once you are out somebody else will replace you, starting a new lease....... Is it possible that it's better for Santander
to have these high volume movements?
Let's say instead of servicing 30,000 leases for 4 years have half of them rotating
terminating 15,000 leases every year and creating 15,000 new leases every year?
Could that be an even more profitable deal for them?

Again, I don't know but I wouldn't be surprised if it is.


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## DC_Share_Driver (Nov 24, 2014)

ElectroFuzz said:


> I don't know how they feel about it but I must wonder:
> 
> - Is it possible that Santander will make even more money if you turn in the car early?... even if they have to reposes?
> 
> ...


I do not believe Santander has completed such high level modeling on churn rates. Since the program has not changed since it was developed. Here is why:

1. I do not see a resale market for the early Uber lease turn-ins. As far as I know Uber/Santander does not offer old leases for buy or rental to drivers.

2. There is an expense and a cost for Santander to re-acquire the vehicle and to auction the car to wholesalers. Selling the car to Uber drivers is one thing, but wholesaling the cars to auto dealers is another. They will not pay a dime above market value for a 55,000 mile 2014 Toyota Camry.

3. The goal for the Santander program, is to generate profits to the bank, lock drivers into Uber, and allow Uber to generate more revenue on the side. It has been noted that $19 per week from each driver on the Santander Bank lease goes into Uber's pockets.

In your analysis say Uber has 30,000 drivers on the Santander program each driver generates $76.00 monthly just for processing the lease payments. 30,000 (drivers) X $76.00 (processing weekly fees) generates Uber $2,280,000 per month in free revenue. Annualized that's over $27,360,000.00, just to process our weekly payments.

4. Uber also generates revenue when you sign-up for the program. There is a $499.00 Uber fee added to the price of the car. So that's another 30,000 x $499 = $14,970,000.00 just for getting drivers to sign-up for the program.

5. Uber generates initial revenue when the driver signs up $499.00 plus $912.00 per year for each driver on the program. So there is initial plus residual revenue for the program.

6. The Uber lease program, is specifically designed to accomplish several objectives for the organization.

A. Offer high quality vehicles for the Uber Customer.
B. Generate revenue for offering the program. Initial and weekly processing fees included in the payments.
C. Move the operations, maintenance expense, fuel, and wear & tear off Uber's balance sheet and add these liabilities elsewhere. (The Drivers)

The More I study Uber's business the more I hate them!!!


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## painfreepc (Jul 17, 2014)

DC_Share_Driver said:


> I do not believe Santander has completed such high level modeling on churn rates. Since the program has not changed since it was developed. Here is why:
> 
> 1. I do not see a resale market for the early Uber lease turn-ins. As far as I know Uber/Santander does not offer old leases for buy or rental to drivers.
> 
> ...


The $19 weekly payment is only paid for 52 weeks (12 months), this payment is the $1,000 security deposit shortfall,

It's $2,000 to start the lease program:
$1,000 to the car dealer, i paid this in cash to the Ford dealer, no check, no or money order, dealer give me a receipt,

$1,000 security deposit to uber, can be paid off @ $19.24 plus or minus a few pannys for 52 weeks.

I did see the point in paying the security deposit upfront, as this payment has no interest.


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## Actionjax (Oct 6, 2014)

In the calculations you forget about the dealer incentive from the manufacturers for selling the cars on volume. They get sometimes kickbacks on models based on hitting targets and turning out older inventory. Those could also be in the thousands. This is how some dealers can sell at invoice cost at times. Toyota and Ford will have dealer incentives back to dealers.


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## DC_Share_Driver (Nov 24, 2014)

Actionjax said:


> In the calculations you forget about the dealer incentive from the manufacturers for selling the cars on volume. They get sometimes kickbacks on models based on hitting targets and turning out older inventory. Those could also be in the thousands. This is how some dealers can sell at invoice cost at times. Toyota and Ford will have dealer incentives back to dealers.


Yes, you are correct.


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## Micmac (Jul 31, 2015)

Schulz said:


> Actionjax is right. I have a copy of the lease and the moment you don't work for Uber for any reason, the lease is void and you have to either buy the car from the Santander company or return it.


That s not true I ask Santander they said even if you quit uber you still can keep the car if you are making payments.


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