CNBC Breaks Down Uber's Financing With Goldman Sachs

Is there a an auto loan bubble? To Uber and Goldman Sachs, the answer is seemingly, no. Bloomberg reported that Uber secured a $1 billion loan from Goldman Sachs Group Inc

to underwrite new loan leases. How does this fit into Uber's strategy? Many media outlets have covered this news, here's what they had to say. CNBC's Ari Levy noted that Uber's Xchange Leasing accounted for 41% of sales of a Chicago Nissan dealership. A store executive he spoke with said that sales had doubled in 2016 from the same 3 months in 2015. Sell-side firms such as Citigroup Inc

, Deutsche Bank AG

, JP Morgan Chase & Co.

, Morgan Stanley

, and SunTrust Banks, Inc

participated in the $1 billion underwriting led by Goldman Sachs. Although Uber drivers can lease a new car for $500 dollars, there is some controversy related to the leasing program. Levy reports that drivers are expected to pay nearly $120-$160 per week which adds up, especially as Uber continues to drop ride prices. Becoming a major player in the auto finance market, Uber will continue to add to push for growth outside of the U.S., such as China and India. Uber currently sports a $62.5 billion dollar private market valuation.