# Uber Car Leases look Okay I think



## lizf (Mar 13, 2016)

I was looking through this article and the Uber lease thing actually looks alright. It gives people that couldn't get a job or a car access to these. Maybe could help out a lot of people. Check this out: http://www.bloomberg.com/news/artic...et-a-car?nl=dealbook&emc=edit_dlbkam_20160601


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## Older Chauffeur (Oct 16, 2014)

lizf said:


> I was looking through this article and the Uber lease thing actually looks alright. It gives people that couldn't get a job or a car access to these. Maybe could help out a lot of people. Check this out: http://www.bloomberg.com/news/artic...et-a-car?nl=dealbook&emc=edit_dlbkam_20160601


There were several threads on this topic posted previously. (Search "Bloomberg".) If you read the entire article, it appears there are more losers than winners among Uber's "partners" who have signed up for these substandard leases.


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## ChortlingCrison (Mar 30, 2016)

Stay clear of any car-leases/rentals that have anything to do with Uber.


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## JJ/Uber/Miami (Jun 24, 2015)

lizf said:


> I was looking through this article and the Uber lease thing actually looks alright. It gives people that couldn't get a job or a car access to these. Maybe could help out a lot of people.


Don't believe everything you read. If you go for ANY Uber car leasing deals you are the village idiot. STEP AWAY FROM THE BRAINWASHING KOOL-AID THAT IS UBER. YOU HAVE BEEN WARNED !!!!!


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## Old Rocker (Aug 20, 2015)

The article is fluff and slanted, and I'm no Uber apologist.

The leases have a two-week escape clause, unlimited mileage, and free oil changes and tire rotations. A near new Camry for $120 a week that you can drive as much as you like and turn it in whenever you want is a good deal for many drivers. If you don't mind coughing up $250, you can get a "new" car every year, or less.

And the best thing... no depreciation. The second best thing... no depreciation. The third best thing... interest on a leased vehicle used for a business is tax deductible. The fourth best thing, you can deduct your 54 cents a mile, which has depreciation built in, and have no depreciation to worry about.


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## JJ/Uber/Miami (Jun 24, 2015)

Old Rocker said:


> The article is fluff and slanted, and I'm no Uber apologist.
> 
> The leases have a two-week escape clause, unlimited mileage, and free oil changes and tire rotations. A near new Camry for $120 a week that you can drive as much as you like and turn it in whenever you want is a good deal for many drivers. If you don't mind coughing up $250, you can get a "new" car every year, or less.
> 
> And the best thing... no depreciation. The second best thing... no depreciation. The third best thing... interest on a leased vehicle used for a business is tax deductible. The fourth best thing, you can deduct your 54 cents a mile, which has depreciation built in, and have no depreciation to worry about.


Okay Pal. But I implore you to read the fine print on that contract to avoid any nasty surprises in the future. I'm just sayin !!!


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## BostonTaxiDriver (Nov 23, 2014)

Seems it MAY be acceptable only if you work lots of miles and lots of hours?


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## tohunt4me (Nov 23, 2015)

lizf said:


> I was looking through this article and the Uber lease thing actually looks alright. It gives people that couldn't get a job or a car access to these. Maybe could help out a lot of people. Check this out: http://www.bloomberg.com/news/artic...et-a-car?nl=dealbook&emc=edit_dlbkam_20160601


Go for it !

You can always sell the parts and set the remains on fire if things don't work out.

Then claim it was stolen,demand another one,and repeat.


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## Hunt to Eat (Nov 19, 2015)

lizf said:


> I was looking through this article and the Uber lease thing actually looks alright. It gives people that couldn't get a job or a car access to these. Maybe could help out a lot of people. Check this out: http://www.bloomberg.com/news/artic...et-a-car?nl=dealbook&emc=edit_dlbkam_20160601


Wrong. Look, Uber drivers make $7 to $9 per hour on average. One simply cannot maintain a lease on those wages. Leasing a car to drive Uber is a horrible approach no matter how one re-writes the equation.


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## Old Rocker (Aug 20, 2015)

Hunt to Eat said:


> Wrong. Look, Uber drivers make $7 to $9 per hour on average. One simply cannot maintain a lease on those wages. Leasing a car to drive Uber is a horrible approach no matter how one re-writes the equation.


I have an Xchange lease and am able to make my payments and have money left over.


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## Rat (Mar 6, 2016)

Old Rocker said:


> The article is fluff and slanted, and I'm no Uber apologist.
> 
> The leases have a two-week escape clause, unlimited mileage, and free oil changes and tire rotations. A near new Camry for $120 a week that you can drive as much as you like and turn it in whenever you want is a good deal for many drivers. If you don't mind coughing up $250, you can get a "new" car every year, or less.
> 
> And the best thing... no depreciation. The second best thing... no depreciation. The third best thing... interest on a leased vehicle used for a business is tax deductible. The fourth best thing, you can deduct your 54 cents a mile, which has depreciation built in, and have no depreciation to worry about.


No, you can't use the standard mileage deduction.


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## Rat (Mar 6, 2016)

Old Rocker said:


> I have an Xchange lease and am able to make my payments and have money left over.


So you can make the payments? Doesn't seem like much reward for your work. Pay $xxx a week to make $xxx+$20 a week


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## Old Rocker (Aug 20, 2015)

Rat said:


> No, you can't use the standard mileage deduction.


Can you source an IRS document that supports your assertion?


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## Old Rocker (Aug 20, 2015)

Rat said:


> So you can make the payments? Doesn't seem like much reward for your work. Pay $xxx a week to make $xxx+$20 a week


You have no idea how much I make.


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## Rat (Mar 6, 2016)

Old Rocker said:


> You have no idea how much I make.


I know what you said you make. Were you lying?


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## grams777 (Jun 13, 2014)

Old Rocker said:


> Can you source an IRS document that supports your assertion?


Owning or leasing can use mileage rate.

https://www.irs.gov/taxtopics/tc510.html


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## Old Rocker (Aug 20, 2015)

Rat said:


> I know what you said you make. Were you lying?


I average $13.50 an hour gross. Before the rate cuts that were supposed give us more business I averaged $18.00 an hour. That's all I've ever claimed I've made aside from a few exceptional days when I had single rides that were over $100.

Actually, last Friday all of my trips but one were surges and I made more than $20.00 an hour.


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## Rat (Mar 6, 2016)

Old Rocker said:


> Can you source an IRS document that supports your assertion?


Nope, well maybe, but I ain't claiming it on my return, you are. Pretty sure claiming depreciation on an item you don't actually own is illegal. Remember, the entity you lease the vehicle from is claiming the depreciation. On the bright side, you can claim your lease payments, or at least the proportional amount used for business. Should be more than the depreciation is anyway.


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## Rat (Mar 6, 2016)

Old Rocker said:


> I average $13.50 an hour gross. Before the rate cuts that were supposed give us more business I averaged $18.00 an hour. That's all I've ever claimed I've made aside from a few exceptional days when I had single rides that were over $100.
> 
> Actually, last Friday all of my trips but one were surges and I made more than $20.00 an hour.


So figure out how many hours of NET pay it takes to pay your lease. That's how many hours a week you're working for nothing. It may or may not be worth it.


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## grams777 (Jun 13, 2014)

Rat said:


> Nope, well maybe, but I ain't claiming it on my return, you are. Pretty sure claiming depreciation on an item you don't actually own is illegal. Remember, the entity you lease the vehicle from is claiming the depreciation. On the bright side, you can claim your lease payments, or at least the proportional amount used for business. Should be more than the depreciation is anyway.


Owning or leasing can use the mileage rate method. Now if you lease and instead choose the actual expense method, then your lease payment comes into play rather than depreciation.

If you lease a car, truck, or van that you use in your business, you can use the standard mileage rate or actual expenses to figure your deductible expense. This section explains how to figure actual expenses for a leased car, truck, or van.​
https://www.irs.gov/publications/p463/ch04.html#en_US_2015_publink100034045


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## Rat (Mar 6, 2016)

grams777 said:


> Owning or leasing can use the mileage rate method. Now if you lease and instead choose the actual expense method, then your lease payment comes into play rather than depreciation.
> 
> https://www.irs.gov/publications/p463/ch04.html#en_US_2015_publink100034045


I stand corrected. I'm thinking deducting the lease would be more, tho


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## grams777 (Jun 13, 2014)

Rat said:


> I stand corrected. I'm thinking deducting the lease would be more, tho


I'd run it both ways to see. Although, one of the few benefits to driving is trying to get more of a tax deduction than your expenses actually are.


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## Rat (Mar 6, 2016)

grams777 said:


> I'd run it both ways to see. Although, one of the few benefits to driving is trying to get more of a tax deduction than your expenses actually are.


Definitely agree with that!


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## elelegido (Sep 24, 2014)

Old Rocker said:


> If you don't mind coughing up $250, you can get a "new" car every year, or less.


No. You'd think that, given the program's name. But as usual with Uber, things are not what they first seem. There is no "exchanging" of vehicles with Xchange. Once you hand back your vehicle, you're out of the Xchange program.[/QUOTE]


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## I_Like_Spam (May 10, 2015)

I'd be very cautious indeed. Auto leases are complex documents, and the Sharing Economy as well as Uber are right now in a state of flux.

Fares could go up and down, as well as your income as the number of new drivers both for Uber as well as its competitors varies.

Figuring whether or not this is going to be lucrative enough of a job to pay the lease is a real calculus level equation, considering the number of moving parts here.


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## Hunt to Eat (Nov 19, 2015)

Old Rocker said:


> I have an Xchange lease and am able to make my payments and have money left over.


Well, I s'pose the good news is that you're tearing up someone else's car, not your own. There's definitely value in that.


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## Hunt to Eat (Nov 19, 2015)

I_Like_Spam said:


> I'd be very cautious indeed. Auto leases are complex documents, and the Sharing Economy as well as Uber are right now in a state of flux.
> 
> Fares could go up and down, as well as your income as the number of new drivers both for Uber as well as its competitors varies.
> 
> Figuring whether or not this is going to be lucrative enough of a job to pay the lease is a real calculus level equation, considering the number of moving parts here.


You are spot on! With the proven instability of rates (aka, declining rates) and the mystery of surge pricing still unresolved, leasing is a very risky proposition. The more proven and reliable model is for a prospective driver to purchase a tater that has two to three years of Uber life left in it for cash and drive it until Uber tells you the car's too old. Chances are the driver will be ready to bag the Uber experience after a couple years anyway.


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## I_Like_Spam (May 10, 2015)

Hunt to Eat said:


> . The more proven and reliable model is for a prospective driver to purchase a tater that has two to three years of Uber life left in it for cash and drive it until Uber tells you the car's too old..


Of course, Uber's standards as to what is "too old" to drive are also pretty flexible. But if they tell you its too old 6 months from now, you still have the car.

Uber has only been around for like 2 years in many locations, its still in the "start up" phase. For a man to go into business with Uber as a partner has a lot more uncertainty involved than someone going into business making sandwiches for Subway, example given.


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## Hunt to Eat (Nov 19, 2015)

I_Like_Spam said:


> Of course, Uber's standards as to what is "too old" to drive are also pretty flexible. But if they tell you its too old 6 months from now, you still have the car.
> 
> Uber has only been around for like 2 years in many locations, its still in the "start up" phase. For a man to go into business with Uber as a partner has a lot more uncertainty involved than someone going into business making sandwiches for Subway, example given.


Again...spot on. And the truth of the matter is, working at Subway pays nearly identically to Uber, maybe slightly higher after one calculates wear on one's car.


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## I_Like_Spam (May 10, 2015)

Hunt to Eat said:


> Again...spot on. And the truth of the matter is, working at Subway pays nearly identically to Uber, maybe slightly higher after one calculates wear on one's car.


I was thinking more in line with going into business with Subway and opening a franchise store, sorry I wasn't clear.

The point being that Subway has been partnering with local people for decades, you have a better grip as to what you'll need to invest.

-sometimes working at Subway pays more than owning a store, but the risks that the owner entails are known. The risks in investing in rolling stock to engage in ubering are largely unknown


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## Fauxknight (Aug 12, 2014)

Rat said:


> I stand corrected. I'm thinking deducting the lease would be more, tho


Not likely, but if you do make sure you keep every item you can deduct, keep those gas receipts and everything else like new headlights, wipers, filters, et cetera.

Assuming $180/week on a lease with $30k mileage limit (those are the last numbers I've seen on a weekly lease) you'd spend $9360 on the lease if you kept to 30k miles or less. If you deduct 30k miles at $.54/mile thats $16200 right there. So at 30k miles you would have to have $6840 ($16200-$9360) in additional expenses in order for itemizing to be better than just mileage. Gas is going to be maybe $2.5k of that, which leaves you with another $4k in expenses which isn't likely to happen, but it could (insurance eats up another good chunk of that)

On the other hand if you don't run the full 30k, then you can't deduct as much in mileage but still spend just as much on the base lease. So running under on miles starts to lean more towards itemization.

Mileage overage is the opposite though. Last I saw was $.15/mile over 30k, and, since you aren't going to spend an additional $.39/mile ($.54-$.15), it means at higher mileage numbers you are more likely to want to deduct by mileage.

So the lesson is:
At low mileage you are more likely to benefit from going by actual costs.
At high mileage you are more likely to benefit from the standard mileage deduction.


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## Hunt to Eat (Nov 19, 2015)

Fauxknight said:


> Not likely, but if you do make sure you keep every item you can deduct, keep those gas receipts and everything else like new headlights, wipers, filters, et cetera.
> 
> Assuming $180/week on a lease with $30k mileage limit (those are the last numbers I've seen on a weekly lease) you'd spend $9360 on the lease if you kept to 30k miles or less. If you deduct 30k miles at $.54/mile thats $16200 right there. So at 30k miles you would have to have $6840 ($16200-$9360) in additional expenses in order for itemizing to be better than just mileage. Gas is going to be maybe $2.5k of that, which leaves you with another $4k in expenses which isn't likely to happen, but it could (insurance eats up another good chunk of that)
> 
> ...


So true. I bought my '07 Fit new in '06 for $18k. I bought it for one of my other businesses and then used it for Uber, too. It now has 170k miles on it and I gave it to my son. I've deducted every mile since new. To date, the car for which I paid $18k has allowed me to expense in excess $85k in eight years. That's just smart accounting right there. PRO TIP: Keep a daily journal of your miles and destinations.


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## Old Rocker (Aug 20, 2015)

elelegido said:


> No. You'd think that, given the program's name. But as usual with Uber, things are not what they first seem. There is no "exchanging" of vehicles with Xchange. Once you hand back your vehicle, you're out of the Xchange program.


[/QUOTE]
You're correct. The post of mine you quoted was made by me in error, however, I think I posted later that I was wrong and one could only lease through Xchange once every 36 months.


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## Old Rocker (Aug 20, 2015)

Fauxknight said:


> Not likely, but if you do make sure you keep every item you can deduct, keep those gas receipts and everything else like new headlights, wipers, filters, et cetera.
> 
> Assuming $180/week on a lease with $30k mileage limit (those are the last numbers I've seen on a weekly lease) you'd spend $9360 on the lease if you kept to 30k miles or less. If you deduct 30k miles at $.54/mile thats $16200 right there. So at 30k miles you would have to have $6840 ($16200-$9360) in additional expenses in order for itemizing to be better than just mileage. Gas is going to be maybe $2.5k of that, which leaves you with another $4k in expenses which isn't likely to happen, but it could (insurance eats up another good chunk of that)
> 
> ...


Xchange lease has no mileage limit, and $180 a week is much higher than any vehicle on the lot at the dealership I went to.


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## dirtylee (Sep 2, 2015)

Xchange makes sense if you're broke, have really bad credit & love driving 1k plus miles a week.


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