# Car loan say it's for personal use only!



## UberJag (Feb 29, 2016)

I decided it's time to get a new car and got a pre-approved loan and I planned to buy a used car this week (probably a 2013 Honda Civic or Accord). I noticed the loan paperwork said the vehicle should be for "personal use" only. I called and asked if very part-time Uber driving would be okay and they said NO! 

The loans/leases that Uber offers are geared towards full-time Uber drivers not part time drivers. There is no way I would pay over $800 a month for a Toyota Corolla! That is insane!

Anyone know of a loan company that works with Uber drivers? I have a full-time job and only Uber a few hours a day about 4-5 days a week.


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## Stygge (Jan 9, 2016)

Long story short; don't take a loan to buy an uber car. You get into negative equity very quickly and depending on your financial situation you can find yourself homeless real quick. Buy a car you can afford to pay cash. If you can't afford a car approved by uber in your market, it's a much better proposition to go work for Burger King or any other job you may qualify for.

The reason your lender don't want you to use the car for uber is that their collateral (your car) loses value quicker than you pay it off. That is a sound business decision. Anyone that would offer to finance an uber car probably charge outrageous rates because there is a high risk you will default on your loan.


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## UberJag (Feb 29, 2016)

I'm not buying it just to Uber though. I have a good full time job as an Executive Assistant for a VP at a Fortune 100 company and need car because my car (a 2003 Jaguar) is costing me more in repairs than it's worth. I only uber very part time...like only $100 - $200 a week.


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## Rsabcd (May 19, 2016)

You wont find one, at least one with reasonable rates. You will either have to retire from uber, at least for a few days or be dishonest. 

I can live with being less than truthful, if this isnt something you can live with, stop driving for a week.


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## UberJag (Feb 29, 2016)

Rsabcd said:


> You wont find one, at least one with reasonable rates. You will either have to retire from uber, at least for a few days or be dishonest.
> 
> I can live with being less than truthful, if this isnt something you can live with, stop driving for a week.


I haven't driven for 2 weeks so that's not a problem but if it's a 5 year loan then I can't drive for 5 years. Not sure what I will do. I have to buy a new car...I just put $800 into it last week and the day after I picked it up I got a flat tire on the freeway and didn't even feel it....next thing I know my tire is rolling down the freeway in front of me! I need a new wheel (I think) and tire. I also have an oil leak that needs repair. I'm sick of putting money into this car. It's still beautiful but not worth it. It's a $60K - $80K car brand new and now it's only worth about $2K - $4k.


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## shiftydrake (Dec 12, 2015)

Go to car lot if asked say no......get correct insurance ask on here other uber drivers will tell you who to check with..........take out loan once you sign papers they can not tell you how to drive your car because they just want paid........pre-approval doesn't really mean too much they will still do a full work up with you at the dealer..........don't hate me but a "pre-approval" is like a sales technique to get you to the car lot........sorry to be blunt but I have numerous family members in auto biz....but like I said if you're getting the car just to buy a new,better one don't mention Uber at all.........after purchase look into timeshare insurance


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## Bob Reynolds (Dec 20, 2014)

Almost all car loans are for personal use only. They almost always prohibit any commercial use unless they are in the name of a business and have commercial plates. The reason for this is because the vehicle depreciates much faster when used in a commercial environment. (usually because it gets driven a lot more miles than for personal use) 

If a lender finds out you are using a personal vehicle for commercial use, they can declare the loan in default and can repo the vehicle without any notice to you in order to protect their collateral from excessive depreciation. When you purchased the vehicle you agreed to use it for personal use only. 

On the insurance side of things, the insurance companies quote you the rate for personal insurance coverage. They expect the vehicle to be parked somewhere for 22 hours a day and not running around town picking up passengers for much for the day. So if the insurance company finds out you are driving for Uber, and you don't have the proper coverage, then they will cancel your insurance and enter the information into the national database that they all use. That will make it difficult (and expensive) to get more insurance.


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## Fuzzyelvis (Dec 7, 2014)

UberJag said:


> I haven't driven for 2 weeks so that's not a problem but if it's a 5 year loan then I can't drive for 5 years. Not sure what I will do. I have to buy a new car...I just put $800 into it last week and the day after I picked it up I got a flat tire on the freeway and didn't even feel it....next thing I know my tire is rolling down the freeway in front of me! I need a new wheel (I think) and tire. I also have an oil leak that needs repair. I'm sick of putting money into this car. It's still beautiful but not worth it. It's a $60K - $80K car brand new and now it's only worth about $2K - $4k.


Sell it and buy a used, more practical car for uber if you want to keep doing it. Pay cash. If you can't save enough money with your regular good job and ubering part time the last thing you need is a car note. Uber could disappear tomorrow.

If you can save then save until you can afford a nicer used car and sell the one you buy "for now".


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## maui (Dec 22, 2015)

Try 1st getting a loan from a bank or credit union that may not have the terms this other company does.

I have never heard of a car repossessed for business usage, especially if your usage is proportionally minimal. In short, keep mileage logs and make sure you keep the mileage for Uber under 50%. Most vehicles have mixed usage to some degree. 

The place where you risk default, is where you do one of those Uber Xchange leases and then Uber deactivates you while you are waiting for repairs.


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## I_Like_Spam (May 10, 2015)

UberJag said:


> Anyone know of a loan company that works with Uber drivers? I have a full-time job and only Uber a few hours a day about 4-5 days a week.


You should speak to the loan officers at your own bank or credit union that knows you. Commercial vehicles are financed all the time, its just that the terms and interest rates are different. Your collateral isn't worth as much to them, so your interest rates will have to reflect the fact that it is just a less secure loan for them. Maybe you can take a home equity loan, or borrow off the value of a securities account?


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## Silver Bullit (Mar 1, 2016)

Best Advice for you or anyone has been stated, DO NOT BUY a NEW CAR to Uber.
With that said, you need a new car and you are thinking you may use this vehicle for Uber as well as Personal.

Straight to the point:
If you feel the need to Uber to make ends meet then you CANNOT AFFORD a NEW CAR PERIOD!

But then again, I am different than most I am a bit Squeaky with my money and vowed years ago that I would ride a bike before I ever make another car payment. I always pay cash and almost always buy used. I have only purchased one new vehicle in my life for cash, it was a fantastic experience.
Before I saw the light, I purchased with credit 11 new vehicles, I was STUPID and Uneducated then.

Stay Safe


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## RamzFanz (Jan 31, 2015)

A) How will they know you Uber?

B) Just ensure you are insured to replace it in an accident with TNC insurance or Ubers.


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## Modern-Day-Slavery (Feb 22, 2016)

RamzFanz said:


> A) How will they know you Uber?
> 
> B) Just ensure you are insured to replace it in an accident with TNC insurance or Ubers.


Avoid unscrupulous lenders. More discussed here: https://uberpeople.net/threads/warning-to-australian-uber-drivers.80520/


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## stuber (Jun 30, 2014)

Fuzzyelvis said:


> Sell it and buy a used, more practical car for uber if you want to keep doing it. Pay cash. If you can't save enough money with your regular good job and ubering part time the last thing you need is a car note. Uber could disappear tomorrow.
> 
> If you can save then save until you can afford a nicer used car and sell the one you buy "for now".





UberJag said:


> I decided it's time to get a new car and got a pre-approved loan and I planned to buy a used car this week (probably a 2013 Honda Civic or Accord). I noticed the loan paperwork said the vehicle should be for "personal use" only. I called and asked if very part-time Uber driving would be okay and they said NO!
> 
> The loans/leases that Uber offers are geared towards full-time Uber drivers not part time drivers. There is no way I would pay over $800 a month for a Toyota Corolla! That is insane!
> 
> Anyone know of a loan company that works with Uber drivers? I have a full-time job and only Uber a few hours a day about 4-5 days a week.


Sell the Jag for $3000. Then buy the cheapest POS Prius that qualifies for U/L/whatever B.S. TNC. You may have to augment with more personal cash in order to obtain said POS Prius. Problem solved.


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## rtaatl (Jul 3, 2014)

RamzFanz said:


> A) How will they know you Uber?
> 
> B) Just ensure you are insured to replace it in an accident with TNC insurance or Ubers.


Uber has been reporting use to lenders. It's even in the new Georgia driver's addendum that they reserve the right to do so.


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## Hunt to Eat (Nov 19, 2015)

It seems the universe is telling you it's time to end your Uber driving "career." But that's not a bad thing. I found it liberating when the universe gave me a similar message.


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## Another Uber Driver (May 27, 2015)

Do they have "Buy Here, Pay Here" lemon lots in California? They have them here, mostly in the Virginia suburbs, and most of them do not care if you use it for Uber. In fact, half of the small "landscaping" and handyman entrepreneurs have their vans financed from those places. If they have them in California, it should not be hard to find a six to eight year old Camry with a few scratches and small dents to use for Uber.

We have one lady on these boards (and from this area) who does use a Jaggedwire for Uber, but, she is extremely part time, which is how I suspect that she gets away with it. As much trouble as those things are, I would wonder how anyone could use one for this kind of work.


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