# Dealership terms and Uber possibilities



## Sumanth Krishna (Apr 20, 2015)

Hello,
I bought a 2007 Toyota Camry through a dealership with financing option. After the entire formality was done and a lot of money put in, the dealership reads a bunch of agreements, one of which states that I cannot use the vehicle I buy "as a taxi or for hire". 

I am already approved for Uber and all I need to do is to upload my license plate and insurance information. I am worried if Uber will be counted as either of those and not sure how risky it is to do it anyway. Have any of you guys experienced this issue? Is it possible to drive for Uber?


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## Disgusted Driver (Jan 9, 2015)

My personal opinion, it's no worse than the insurance fraud you'll be committing when you start driving for uber, probably not as bad. Bottom line, if you get into an accident while driving for uber, car is totaled and insurance company balks at paying, you'll be liable for full amount owed on vehicle.


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## azndriver87 (Mar 23, 2015)

if you lease /finance a vehicle, keep in mind the car is not yours and you cannot use it as you please


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## zandor (Mar 6, 2015)

You still own the vehicle if you finance it, it's just subject to a lien from the bank. Financing agreements usually do have clauses about proper maintenance, keeping the "collateral" in good condition, etc. though so you can't do whatever you like even though you technically own it.

The messy bit with financing is there is usually an acceleration clause if you violate the terms of the agreement. If you set off an acceleration clause the entire outstanding amount of the loan becomes due immediately. At that point you have three options - write a check for the full amount, refinance the car, or wait for the repo guy to show up.


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## DrJeecheroo (Feb 12, 2015)

Just watch out for the repo man.


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## Sumanth Krishna (Apr 20, 2015)

LAndreas said:


> @Sumanth
> 
> That template obviously pre-dates the emergence of TNC (transportation network companies), and ridesharing, otherwise that would have been included in the definition of what you can and cannot do. In emerging practice, most jurisdictions that regulate ridesharing define it as separate from the traditional taxi and for hire business. I therefore think you are one somewhat firm footing to argue that your lease does not outright ban you from "ridesharing" using Uber platform.


Thank you so much. That was very detailed and helpful. So you think this particular sentence that I mentioned in the question is a sentence that is often seen in many financed/leased vehicles? Even before Uber/Lyft? Was it a standard statement to make sure you do not use your car as a taxi and that is it? That makes a lot of sense if it is. And it also makes me think I could actually be able to ride for Uber because the terms of agreement for vehicles in the current date is not even talking about Uber, just taxis.


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## DrJeecheroo (Feb 12, 2015)

Sumanth Krishna said:


> Thank you so much. That was very detailed and helpful. So you think this particular sentence that I mentioned in the question is a sentence that is often seen in many financed/leased vehicles? Even before Uber/Lyft? Was it a standard statement to make sure you do not use your car as a taxi and that is it? That makes a lot of sense if it is. And it also makes me think I could actually be able to ride for Uber because the terms of agreement for vehicles in the current date is not even talking about Uber, just taxis.


Uber is a taxi service.


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## Sumanth Krishna (Apr 20, 2015)

zandor said:


> You still own the vehicle if you finance it, it's just subject to a lien from the bank. Financing agreements usually do have clauses about proper maintenance, keeping the "collateral" in good condition, etc. though so you can't do whatever you like even though you technically own it.
> 
> The messy bit with financing is there is usually an acceleration clause if you violate the terms of the agreement. If you set off an acceleration clause the entire outstanding amount of the loan becomes due immediately. At that point you have three options - write a check for the full amount, refinance the car, or wait for the repo guy to show up.


My financing is not through a bank, it is directly to the dealership. They are providing their own financing option. Also, I thought that "good maintenance is mandatory" applies only to leased vehicles? You know, those ones with a miles limit per year and return the car after the contract kind agreement? Does it apply even if I am buying it and financing it?

Also, what the common argument is, don't wreck your car! That seems to be the consensus of this thread.


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## DrJeecheroo (Feb 12, 2015)

"Also, what the common argument is, don't wreck your car! That seems to be the consensus of this thread." I think the common argument is, don't finance anything from uber.


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## Sumanth Krishna (Apr 20, 2015)

DrJeecheroo said:


> Uber is a taxi service.


Uber is a FHV (For Hire Vehicle) I believe?



DrJeecheroo said:


> "Also, what the common argument is, don't wreck your car! That seems to be the consensus of this thread." I think the common argument is, don't finance anything from uber.


I am not financing this car from Uber, I am trying to use the money I make as an Uber driver to finance this car I got from a different dealership which is not one of those Uber financing options. If that is what you meant by that.


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## DrJeecheroo (Feb 12, 2015)

That's exact what a taxi is. A for hire vehicle. The same thing can be said about limos as well.


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## Sumanth Krishna (Apr 20, 2015)

DrJeecheroo said:


> That's exact what a taxi is. A for hire vehicle. The same thing can be said about limos as well.


I feel like the limo service is the same as Uber while a taxi is a different thing. I just read an article that clearly states how For Hire Vehicles are different from Taxis in the eyes of the government.


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## DrJeecheroo (Feb 12, 2015)

In the eyes of "certain" government officials that uber big wigs are able to bribe.


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## Disgusted Driver (Jan 9, 2015)

Sumanth, you are hearing and listening to what you want to hear. It may be correct, it may not. The only one who can give you a qualified opinion is an attorney, the rest of us here are guessing. 

Bottom line, you will very likely not have an issue if you never get into an accident. If you do have an accident then you will have the stress of worrying whether you get away with it or not, only you can decide if that is a reasonable risk to take. I am comfortable with it, others are not. BTW, it is highly unlikely that the financing is actually with the dealership. They might have written the loan but they typically sell them to a third party so that their capital isn't tied up.


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