Since 2012, Brett Helling has built expertise in the rideshare and delivery sectors, working with major platforms like Uber, Lyft, and DoorDash.
He acquired Ridester.com in 2014, the first ridesharing marketplace, leveraging his direct experience to enhance the site. His insights at Ridester are recognized by Forbes, Vice, and CNBC.
Expanding his reach, Brett founded Gigworker.com and authored “Gigworker: Independent Work and the State of the Gig Economy“, demonstrating his comprehensive knowledge of the gig economy.
Owner, Ridester.comRidester articles are reviewed by gig economy experts before getting published to ensure accuracy, thoroughness, and quality. Learn about our editorial standards.
Sam Choi
Hi there! My name is Sam Choi, and I am a rideshare driver for both Uber and Lyft.
Ever since I started ridesharing, I’ve taken thousands of trips, and have been able to master every aspect of the job. I’ve interviewed numerous drivers, taken courses, read everything I could find on the web, and aggressively analyzed every shift I drove. As a result, I am personally am in the top 1% in the nation when it comes to earnings.
I share what I know in the multiple rideshare courses that I created, which were acquired by Ridester.com in 2018.
Updated on: December 26, 2023
Key Takeaways
Recommendations: I don’t recommend a standard leased vehicle for Uber driving. If you do want to lease, check out a platform like HyreCar, which specifically caters to rideshare drivers.
Uber driving is one of the most profitable side gigs out there. If you want to get in on the action, an Uber lease would be the easiest solution. Still, this long-term car rental option isn’t suitable for everyone.
This in-depth guide will cover everything you need to know about car leasing for Uber, helping you analyze the financial implications of the decision.
No, Uber no longer leases vehicles to drivers through XChange. The Uber XChange program, which initially allowed drivers to lease vehicles, was terminated in January 2018.
After Uber ended this program, it was taken over by Fair, which modified it from a leasing to a more flexible rental model. However, Fair has also ceased its operations in the car rental program associated with Uber.
Consequently, both the Uber XChange leasing program and the Fair car rental program are no longer available for Uber drivers.
However, Uber continues to invest in other rental partnerships and offers vehicle access options through collaborations with companies like Hertz, Avis, ZipCar, and Getaround.
Car leasing allows you to drive a vehicle for a set time or limited mileage. This can be particularly helpful for Uber and other rideshare drivers who don’t own a vehicle but still want to take advantage of the profitable side hustle.
Think of this similar to how you would lease a house. You’ll get a vehicle to do with as you please, paying a monthly rental fee. Then, you return the car to the dealership at the end of the period.
Accordingly, if Uber driving isn’t a long-term gig for you, leasing a car would be perfect. You can drive strangers in your temporary vehicles, and once you’re done with the gig, you’ll get a new car!
That said, car leasing isn’t the best idea for everyone. Unlike buying a vehicle, you don’t own the car but still make monthly payments.
Many people mistake leasing for rental. However, the two couldn’t be less alike. Car leases usually last anywhere between 24 and 36 months, while rental vehicles last only weeks. You also don’t have the leisure to return the leased car before the contract term ends.
That’s not all. Car leasing is only available through car dealerships. This gives you less flexibility than if you were to deal with a bank.
Car leases aren’t as flexible as you might like them to be. While some car leasing companies will agree to a lease termination, they’ll do it in exchange for a fee. After all, the dealer was expecting monthly payments for a set time.
How much you’ll pay usually depends on the period remaining in the lease’s term. If you want to end the car lease a month or two before it’s set to end, most car dealerships won’t mind.
Your other option would be to swap the lease with another Uber driver, a relative, or anyone looking for a car!
Leasing a car comes with some drawbacks. While this can be a suitable choice in certain scenarios, many Uber drivers can find this option to be unsustainable.
Luckily, you can still drive your dream car and earn money through your ridesharing business with the help of the following alternatives:
Though renting a car would cost more, as many car rental programs are on a short-term basis, there are no additional costs such as insurance, security deposits, or acquisition fees.
Depending on your needs, you can get monthly or weekly rentals. This would be the perfect solution if your car recently broke down, or if you want to try ridesharing before fully committing to a lease.
Do you want to pay less for a car, use it freely in your rideshare business, and not have to pay for maintenance? Uber Fleet is the answer.
These programs link individuals who own one or more idle cars with Uber drivers who require a vehicle. Then, the driver can run their rideshare business, giving the Fleet partner a set fee, or a percentage of their earnings.
Instead of making monthly payments to lease a car, you can pay the exact fees, or add an extra couple of hundred, and own the vehicle at the end of the term.
The reason many drivers opt for leasing instead of purchasing is that they need to put in a hefty down payment. Well, saving up or applying for an additional loan seems harder, but it’ll pay off once you own your car.
An Uber lease is an ideal solution for anyone looking for a car but doesn’t have enough for a down payment. If you’re a regular Uber driver, the monthly costs would be easy to handle.
However, the extra mileage, maintenance, and wear and tear fees can quickly take a toll on your finances.
Since you won’t own the vehicle at the end of the lease term, many drivers have opted for alternatives, such as Uber Fleet. With minimal fees and less paperwork, you can’t go wrong with this option.
