# Can you use a financed car?



## Kerplunkenstein

I know you can't use a leased car, but if I finance a car, can I use it for Uber?


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## Expiditer77

Yep, get commercial insurance so if there is a claim it will get paid. If not they drop you, you pay for repairs or you make payments on the wrecked car.


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## 4.9 forever

Is the no lease thing NJ specific? I used a leased car for months. And yes you can use a financed car, again unless NJ has issues with it.


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## MoreTips

Depends on your loan contract. Last thing most lenders wants is a six year loan on a car with a Uber driver.

As long as the lender doesn't find out there is nothing stopping you.


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## 4.9 forever

MoreTips said:


> Depends on your loan contract. Last thing most lenders wants is a six year loan on a car with a Uber driver.
> 
> As long as the lender doesn't find out there is nothing stopping you.


My lender knows, and is also my insurance company where I have the ride share rider.


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## Juggalo9er

Yes you can use a financed car although it's not recommended. The loan company will not care as they only want their money.... Your car insurance company will not cover you unless you have Rider insurance


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## Rakos

Kerplunkenstein said:


> I know you can't use a leased car, but if I finance a car, can I use it for Uber?


Good heavens yes...

Only tiptoe with insurance...

As long as the car is insured...

So the finance company is happy...

I would be careful about...

mentioning Uber more than...

Absolutely neccessary...8>)

Rakos


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## tohunt4me

MoreTips said:


> Depends on your loan contract. Last thing most lenders wants is a six year loan on a car with a Uber driver.
> 
> As long as the lender doesn't find out there is nothing stopping you.


Keep your mileage down to within an average range.
Or, double your payments.
Key is to keep the value of the car to within the range of what you owe on it.
Keep $1,000.00 handy for deductible if there is an accident.


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## wingdog

You are fine as long as you have ride-share gap insurance to cover the loan if you are in a wreck. Otherwise like others have said, ride sharing without insurance co permission can invalidate your policy.


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## JTTwentySeven

Why would a lender care if you drive for Uber or not? Legally, the car is yours. Title and registration is under your name, all you're doing is borrowing the money. They hold onto your title in case you don't pay, in which they can legally take your car. Go enjoy Uber.

Leasing, you don't own the car, the bank does. The title and registration is not under your name. You are basically renting it. Can you drive for Uber? Yes, you can. Will it be worth it? Not so much. Since you are capped on mileage, you'll be paying from 10 cents to 25 cents for overage on your mileage that your contract allows. I ended up paying an extra $2,000 at the end of my lease (and I wasn't driving for Uber) because I was travelling to school.

Insurance, that's the tricky part. Most companies won't cover you if you mention Uber. Some offer rideshare insurance which is an extension, but still won't cover you entirely, because they want you to use Uber's insurance. But if you have the rideshare extension, they won't drop you like others.


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## Mars Troll Number 4

A car won't survive 6 years of Ubering full time.

A lease is a total disaster, you'll go over mileage and could end up owing thousands and thousands beyond the lease.


Doing either is ill advised as you could end up severely badly in the hole following an accident.

Gap insurance is a must if you do...

if not you could end up owing $10,000 and getting a check from James Rivers for $7,000 (after paying $1000 deductible)

Leaving you making payments on a car that's going to the scrap yard with no cash left over for a down payment on a new car.


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## bm1320

I wouldn't not even gap insurance will cover you for rideshare. Read the fine print.


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## wingdog

bm1320 said:


> I wouldn't not even gap insurance will cover you for rideshare. Read the fine print.


That depends on your insurance company, and the rideshare addon. As you yourself posted, read the fine print. My company is one of the few trying to 'lead the pack' in this area and offers quality 'rideshare' policy for all gig workers. (it doesn't just cover uber/lyft) They cover anything besides medical bills to my pax which I specifically declined, which ubers coverage handles. I only need that coverage if I take pax directly without uber/lyft which I do not plan to do. I am however covered for any courier work I do (including insuring the cargo) regardless of if i'm doing it through an app or independently.


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## RynoHawk

JTTwentySeven said:


> Why would a lender care if you drive for Uber or not? Legally, the car is yours. Title and registration is under your name, all you're doing is borrowing the money. They hold onto your title in case you don't pay, in which they can legally take your car. Go enjoy Uber.
> 
> Leasing, you don't own the car, the bank does. The title and registration is not under your name. You are basically renting it. Can you drive for Uber? Yes, you can. Will it be worth it? Not so much. Since you are capped on mileage, you'll be paying from 10 cents to 25 cents for overage on your mileage that your contract allows. I ended up paying an extra $2,000 at the end of my lease (and I wasn't driving for Uber) because I was travelling to school.
> 
> Insurance, that's the tricky part. Most companies won't cover you if you mention Uber. Some offer rideshare insurance which is an extension, but still won't cover you entirely, because they want you to use Uber's insurance. But if you have the rideshare extension, they won't drop you like others.


The only time they may really care is when you're in the dealership buying the car and you put "Uber" or some variation of as your sole employment.


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## bm1320

MoreTips said:


> Depends on your loan contract. Last thing most lenders wants is a six year loan on a car with a Uber driver.
> 
> As long as the lender doesn't find out there is nothing stopping you.


Who in their right mind does 72 and 84 month financing? Idiots.


wingdog said:


> That depends on your insurance company, and the rideshare addon. As you yourself posted, read the fine print. My company is one of the few trying to 'lead the pack' in this area and offers quality 'rideshare' policy for all gig workers. (it doesn't just cover uber/lyft) They cover anything besides medical bills to my pax which I specifically declined, which ubers coverage handles. I only need that coverage if I take pax directly without uber/lyft which I do not plan to do. I am however covered for any courier work I do (including insuring the cargo) regardless of if i'm doing it through an app or independently.


Do you understand how gap insurance works? As in it pays the remaining balance on the principal that your auto insurance doesn't cover (depreciation). All of the ones offered by auto insurance have mileage restrictions as well.


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## bsliv

bm1320 said:


> Who in their right mind does 72 and 84 month financing? Idiots.


I disagree. Finance charges are minuscule with good credit on a new car. Some can even get 0% financing. Only a fool would turn down a loan at 0%. A smart person will extend the 0% loan as long as possible. The borrower almost always has the option of paying more per month (which comes off the principal). If one has a shorter term loan, they don't have the option of paying less per month. Options are good.

I have a 7 year loan at 2% with $0 down payment. I could have got a 1% at 6 years or 0% at 5 years. I have credit card balances, some close to 20%. Guess which one should be paid first.

If I miss a payment and they repossess the car, I'd rather be up side down on the loan than have a bunch of equity in the car. I'd rather have them chase me for the difference than me chase them.

With a lower payment per month, one can use the extra money to work for them. Invest the extra cash in something that pays a higher rate than the loan. It effectively makes the car cheaper than paying cash or getting a shorter term loan.


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## bm1320

bsliv said:


> I disagree. Finance charges are minuscule with good credit on a new car. Some can even get 0% financing. Only a fool would turn down a loan at 0%. A smart person will extend the 0% loan as long as possible. The borrower almost always has the option of paying more per month (which comes off the principal). If one has a shorter term loan, they don't have the option of paying less per month. Options are good.
> 
> I have a 7 year loan at 2% with $0 down payment. I could have got a 1% at 6 years or 0% at 5 years. I have credit card balances, some close to 20%. Guess which one should be paid first.
> 
> If I miss a payment and they repossess the car, I'd rather be up side down on the loan than have a bunch of equity in the car. I'd rather have them chase me for the difference than me chase them.
> 
> With a lower payment per month, one can use the extra money to work for them. Invest the extra cash in something that pays a higher rate than the loan. It effectively makes the car cheaper than paying cash or getting a shorter term loan.


I tend to avoid the temptations of instant gratifcation, save for a couple years at the most, and pay cash. Read/listen to David Ramsey it helps a lot.


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## bsliv

bm1320 said:


> I tend to avoid the temptations of instant gratifcation, save for a couple years at the most, and pay cash. Read/listen to David Ramsey it helps a lot.


It may help you psychologically to pay cash but it would help you economically to get a free loan. If the loan rate matches the inflation rate, the loan is free. If the loan rate is lower than the inflation rate, the lender is paying you to take the loan. Factor in the opportunity costs and its a no brainer - take the loan and extend it as long as possible.

On the other hand, if the loan rate is bad, don't take the loan or pay it off as soon as possible.


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## steveK2016

Juggalo9er said:


> Yes you can use a financed car although it's not recommended. The loan company will not care as they only want their money.... Your car insurance company will not cover you unless you have Rider insurance


Your finance company might care. They based your loan, and it may br in your contract prohibiting commercial use, based on consumer usage.

The last thing they want is for you to put 200k of depreciation in a car in 2 years of a 5 year contract, default on the loan and not be able to recover their money because the car was driven into the ground.

Thats an added level of risk that they would have accounted for in the APR had they been aware of the commercial use.

Now youre company may npt care but you cannot make a blanket statement that all finance companies dont care. They do. To what extent varies. How they find out about itnis another entirely.


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## smack9x

steveK2016 said:


> Your finance company might care. They based your loan, and it may br in your contract prohibiting commercial use, based on consumer usage.
> 
> The last thing they want is for you to put 200k of depreciation in a car in 2 years of a 5 year contract, default on the loan and not be able to recover their money because the car was driven into the ground.
> 
> Thats an added level of risk that they would have accounted for in the APR had they been aware of the commercial use.
> 
> Now youre company may npt care but you cannot make a blanket statement that all finance companies dont care. They do. To what extent varies. How they find out about itnis another entirely.


Out of the 3 cars I've owned where I took out a loan they never asked me what I was doing with the car or how many miles I was going to put on it. The first car I financed I had over 200k on it before I paid it off. What your car is used for is more of a concern of the insurance company.


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## jaystonepk

There was a $400 "Uber" rebate offered when I bought my Sorento in April of 2017. I didn't qualify because it was not legal in NY outside of New York City at the time so I would say Kia wouldn't have a problem with it.

Analyzing ones personal financial situation and making a smart business decision based on the specs of the loan is highly advisable though.


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## steveK2016

smack9x said:


> Out of the 3 cars I've owned where I took out a loan they never asked me what I was doing with the car or how many miles I was going to put on it. The first car I financed I had over 200k on it before I paid it off. What your car is used for is more of a concern of the insurance company.


They may not have asked it but it doesnt mean there isnt a section in your contract thst prohibits it. In not saying all of them care, but some certainly do. Especially if they are the type to take risks on low credit score individuals wirh a higher risk of defaulting.


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