Second Chance Car Leasing Program Driving For Uber – Bad Credit OK

Driving part time for Uber is just about the most flexible job around. You can choose the days that you want to work. You can set your own hours. If you need to let the dog out or pick up the kids from school, you can simply close the app. To some degree, you can even control how much money you make. Predicting when and where surge pricing will go into effect can triple your earnings in an hour or two.

If bad credit and the lack of a decent vehicle are the only things holding you back, there’s good news: Uber is willing to give you a second chance.

Keep reading to find out how you can get an Uber-approved car under their Xchange Leasing program. You could be driving and earning in no time.

Why Uber Launched Xchange Leasing

The leasing program was originally designed to meet demands by putting more new drivers on the road. That’s hard to do when potential drivers have bed credit that prevents them from getting car loans.

Uber also has strict guidelines about what kinds of cars are acceptable. At the minimum level, they must be four-door sedans or midsize vehicles that seat four or more passengers in addition to the driver. They can’t have cosmetic damage other than minor dings and scratches. In most cities, they have to be model year 2002 or newer. They can’t be former taxi cabs or salvaged vehicles. Insurance, registration and license plates must be current, and all cars must pass an Uber inspection.

In short, Uber is picky about its cars, and that kept a lot of would-be drivers from hitting the highways.

In 2014, the company decided that it was willing to give those drivers a second chance. Even existing drivers are taking advantage of Xchange Leasing to upgrade their cars and provide better customer service.

In the program’s first year, 20,000 new drivers participated. By 2016, that number had grown to around 100,000.

How Xchange Leasing Works

You can apply for a lease on the Uber website.

After your application is approved, you’ll receive a text or email containing a list of dealerships that Uber partners with in your area. You have to make an appointment to visit the dealership and choose a car.

Depending on the car, a $250-400 deposit is required. When you make the appointment, be sure to ask what forms of payment the dealer accepts. You’ll also have to show a valid driver’s license.

An Xchange Leasing specialist will manage all the financial arrangements. The car dealership will facilitate the transaction, but it is Xchange Leasing who closes the deal. You’ll need special insurance that meets its requirements, so you should ask around at several insurance companies beforehand to compare rates. If there are additional regulations in your state, you can find them on the Uber website.

The final step is installation of a tracking device on the car. It takes about an hour and can be done at the same dealership.

Once you’ve chosen your car, the remaining lease process can take anywhere from 24 hours to a few days.

With Xchange Leasing, Uber hopes to attract what they call effective drivers. That simply means drivers who want to work at least 10 hours per week. Lease payments are relatively low, especially if you can log additional hours. The installments are automatically deducted from your Uber earnings on a weekly basis. This eliminates fees for late payments if you’re the forgetful type.

The program was set up to operate at cost and offer flexible financing. Bad credit is not an obstacle to getting approved, but there are a couple of other restrictions. You may be denied if your credit report shows a repossessed vehicle. A bankruptcy or pending bankruptcy within the last 12 months may exclude you from the offer.

Uber will also look into your driving record and do a criminal background check.

There are a number of benefits to leasing:

No mileage restrictions
Free oil changes and tire rotations every 5,000 miles
Free air filter replacement every 25,000 miles
A wide range of preowned and new cars to choose from
Weekly payments as low as $98
No long-term commitment required

The unlimited mileage feature is certainly unusual and attractive, especially for drivers who live in the suburbs. They have long pick-up and drop-off distances to drive, and mileage charges could eat up profits.

The free routine maintenance must be done at the dealership where you lease the car.

Weekly payments don’t include taxes, fees or licensing. You’ll buy your own fuel and pay for things like tires, windshield wiper blades and general upkeep. Some expenses are tax deductible, so keep good records.

After 30 days, you’ll have the option to end your lease without penalty, but you must provide a two-week notice. Your deposit, however, will not be returned unless you keep the car for the entire lease term. Opting out of the lease and returning the car won’t impact your credit score.

Explaining the Program’s Two Tiers

When you apply for the lease, you will qualify for either the first tier, Xchange Leasing, or the second tier, Xchange Access.

If you’re approved for Xchange Leasing, you may choose from eligible vehicles at any participating dealership.

If you’re approved for Xchange Access, you’ll choose from cars that were returned by other Uber drivers who completed or opted out of their leases.

Uber often gets discounts on new cars, but new cars are still more expensive and have higher weekly payments than used ones. That’s why there are usually fewer preowned cars available. If you prefer an affordable used car, you may have to be patient and shop at several dealerships.


Financing is available up to $20,000, and leases are for 36 months. Again, the 156 weekly payments are deducted automatically from your Uber earnings rather than from your personal bank account. Any shortage will roll over to the next week, so it pays to keep driving.

At the end of the lease term, you may buy the car outright at its residual value. If you decide to return it, Uber will do an inspection. If there is no damage beyond reasonable wear, your deposit will be refunded. If the car is damaged, you’ll have to pay the full cost of repair.

Uber will provide the terms and conditions of the lease. As with any contract, you should read it carefully and understand it before you sign. Uber offers support and takes questions by email.

Leasing from Uber is a great way to get around a bad credit score and even improve it over time. Like all credit checks, however, the inquiry may initially lower your score by a few points. Be 100 percent firm in your decision before you apply.

Cars Eligible for Xchange Leasing

All the vehicles in the program are either new or in great condition. All have automatic transmissions and fewer than 60,000 miles on the odometer.

You should choose a car based on your budget and the number of hours that you expect to log. New cars to choose from, as of 2017, include the following:

Chevrolet Malibu
Ford Focus
Honda Accord, Civic or Fit
Hyundai Elantra or Sonata
Nissan Altima, Sentra or Versa
Toyota Camry, Corolla, Prius or Yaris

Preowned cars to choose from include the following:

Honda Accord, Civic or Fit
Hyundai Elantra or Sonata
Nissan Altima, Maxima, Sentra or Versa
Toyota Camry, Corolla, Prius or Yaris

Cities that currently have Xchange Leasing dealerships include those below, but check the Uber website for updates:

California – San Francisco, Los Angeles, Sacramento, San Diego
Georgia – Atlanta
Illinois – Chicago
Maryland – Baltimore
Pennsylvania – Philadelphia, Pittsburgh
Texas – Austin, Dallas, Houston, San Antonio
Tennessee – Nashville
Washington – Seattle, Tacoma
Washington, D.C.
Ohio – Cleveland

Is Xchange Leasing the second chance that you’ve been hoping for?

You can recover from bad credit, increase your income and restore your reputation. Take advantage today and become the newest Uber driver.

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This sound like PCP finance: 3 years lease, “you may buy the car outright at its residual value”. Anyway, at least uber is helping people jump the bad credit loop that stops people from managing to access car finance on low rates.