Over the past few years, new subscriptions services such as Netflix, Spotify and Airbnb have changed the face of rental and ownership. Now, as Uber steadily expands its way across Australian cities, an interesting flow-on effect is happening to new car leasing. In the latest in a series of ‘win/win’ arrangements, Uber drivers can now obtain new vehicles on subscription, thanks to some new car rental services springing up in our major cities.
What does this mean and how does it work? Three Aussie companies are offering Uber driver deals: Splend, Honcho and Easicar. Basically, these companies are allowing approved Uber drivers to subscribe for a weekly fee, and in return receive a new or nearly new car to drive 24/7, including when not working.
There are no major tie-ins after the first four weeks, and after that drivers can return the cars by giving just two weeks’ notice. Insurance, registration, maintenance, and even breakdown recovery are mostly included as standard. If at any time the subscriber decides not to drive for Uber any more, they can simply cancel the arrangement and the car is returned.
Let’s look at Splend, as this company has been going the longest, although it was only launched in July 2015. Operating in Melbourne, Sydney, Brisbane, Perth and Canberra, it already has 500 vehicles on the tarmac with subscribers, and anticipates leasing out another 4000 vehicles, worth around $60 million, to Uber drivers by the end of 2016. Expansion into Adelaide, Hobart and Darwin by late 2016 is planned.
So, what exactly is Splend offering? Full benefits include:
Now let’s look at the relative newbie Honcho.
Slower off the rank, Easicar has been set up by former Macquarie Bank employees.
NO DEPOSIT CAR FINANCE
There is a fourth option that offers an alternative route to car ownership for a modest weekly payment.
One thing is clear. As an Uber driver, you can earn around $1,350 a week, drive a new or nearly new car - or own one immediately via a 1800Approved loan - and still have $1,000 in your pocket every week. It’s hard to argue with a win-win scenario like that.
Are you looking for finance to help you purchase a new vehicle? 1800Approved is one of Australia’s fastest growing car and asset finance brokers. We specialise in car finance, equipment finance, plus insurance and warranty services, and have previously arranged deals from AU$10k to AU$5m. 1800Approved services clients across Australia, working with over 30 independent lenders to find the best deal.
We can also help with sourcing your new and used car warranty, and by sourcing vehicles and equipment through our Drive Wholesale arm.
To learn more about how we can help you, call us today on 1800 277 768.