Insurance: buying with personal and converting to commercial

Inshur

avagyan

New Member
How to buy as personal and make it commercial?

I’m going to rent for the first 2+ weeks (because of the uber promo) but want to get a car in advance (planning to buy out of a dealer’s auction). Got an "empty" (2.5% up to $20K) check from my credit union and looking to buy a Camry (what color to buy, black?). The problem is my bank (credit union) won’t allow it for uber/business use and if finds out will convert it to a personal loan with huge APR. So the idea is to add to my own personal auto insurance when registering in DMV and transfer/convert to a commercial insurance after that. Does anybody have any experience with this theory? Should I register only once? What are the best ways pros and cons?

Also once I’ll have the car what base is the best, where to shop for insurance (have clean record), how long it takes to get car plated/stickered?

Status: Just lost my real job, completed everything and waiting for TLC license (how long it usually takes to get approved/receive)

Thanks!

BTW, be very careful asking any uber related question to your personal insurance. Almost got my geico premium raised merely for asking if they insure for uber durring the call. CSR told me that they don't do commercial and when I said ok-than-kyou-bye she told me not to hang up and stay on hold while she put notes on my account. Had to sign papers (they've sent later) that I’m not using my old car for business, they didn’t even realize that it’s impossible to do that in NYC.
 

marcusguber

Well-Known Member
You can probably get away with it but why bother? You will barely make $15/hr pretax and now you risk pissing off your credit union and committing borderline fraud, if you cant do it legit then dont do it because any risk outside the norm isnt worth it for anyone. This isnt 90k a year this is barely 30k PRETAX.
 

Vanstaal

Well-Known Member
You can probably get away with it but why bother? You will barely make $15/hr pretax and now you risk pissing off your credit union and committing borderline fraud, if you cant do it legit then dont do it because any risk outside the norm isnt worth it for anyone. This isnt 90k a year this is barely 30k PRETAX.
The Uber gold rush train left in 2014.
 

avagyan

New Member
  • Thread Starter Thread Starter
  • #4
I need that 30K right now and I'm not committing fraud I can buy personal vehicle and change my mind and use it as business and it's not their business IMO if it's not suggested I'll ignore that loan and apply for another. Thankfully I have a good credit.
I appreciate all the answers but I need some answers to my questions.
 

marcusguber

Well-Known Member
I need that 30K right now and I'm not committing fraud I can buy personal vehicle and change my mind and use it as business and it's not their business IMO if it's not suggested I'll ignore that loan and apply for another. Thankfully I have a good credit.
I appreciate all the answers but I need some answers to my questions.
You got an answer but didnt like it, hopefully you find the answer you want.
 

Vanstaal

Well-Known Member
I need that 30K right now and I'm not committing fraud I can buy personal vehicle and change my mind and use it as business and it's not their business IMO if it's not suggested I'll ignore that loan and apply for another. Thankfully I have a good credit.
I appreciate all the answers but I need some answers to my questions.
Everything has been covered in this very section of the forum. Just use the search function.
 

Uberman8263

Well-Known Member
You can probably get away with it but why bother? You will barely make $15/hr pretax and now you risk pissing off your credit union and committing borderline fraud, if you cant do it legit then dont do it because any risk outside the norm isnt worth it for anyone. This isnt 90k a year this is barely 30k PRETAX.
Border line fraud sorta like a little pregnant.
 

censoredbytheFCC

Active Member
How to buy as personal and make it commercial?

I’m going to rent for the first 2+ weeks (because of the uber promo) but want to get a car in advance (planning to buy out of a dealer’s auction). Got an "empty" (2.5% up to $20K) check from my credit union and looking to buy a Camry (what color to buy, black?). The problem is my bank (credit union) won’t allow it for uber/business use and if finds out will convert it to a personal loan with huge APR. So the idea is to add to my own personal auto insurance when registering in DMV and transfer/convert to a commercial insurance after that. Does anybody have any experience with this theory? Should I register only once? What are the best ways pros and cons?

Also once I’ll have the car what base is the best, where to shop for insurance (have clean record), how long it takes to get car plated/stickered?

Status: Just lost my real job, completed everything and waiting for TLC license (how long it usually takes to get approved/receive)

Thanks!

BTW, be very careful asking any uber related question to your personal insurance. Almost got my geico premium raised merely for asking if they insure for uber durring the call. CSR told me that they don't do commercial and when I said ok-than-kyou-bye she told me not to hang up and stay on hold while she put notes on my account. Had to sign papers (they've sent later) that I’m not using my old car for business, they didn’t even realize that it’s impossible to do that in NYC.
Being that I was a former paralegal intern for traffic law and litigation, I've seen this same scenario with the lawyer I worked with with his client.

First off, TLC requires that you present the office with the ownership agreement or lease agreement. The dealership will know you are going to make the car commercial plated, and the dealership can possibly report it back to your credit union should the representative want to verify the loan was cleared.

You are basically bait and switching your credit union into giving you a personal auto loan when it's really for business/commerical purposes. You have to pay extra since the city and state of New York taxes you for using their roads, so that means you are evading the fees that everybody else is supposed to pay, not cool. It is difficult for the credit union to know your intentions with the car, but should they ever repossess it or look at it for accident damage, they're going to see the TLC plates and blue diamonds that say "taxi and limousine commission" and that's it. Loan fraud can land you a small claims lawsuit and can hit your credit.

Just pay your dues; New York City does not take kindly to people that try to cheat them out of money.
 

avagyan

New Member
  • Thread Starter Thread Starter
  • #10
Thanks for your answers censoredbytheFCC
can you clarify few points
You have to pay extra since the city and state of New York taxes you for using their roads, so that means you are evading the fees that everybody else is supposed to pay, not cool.
I'm willing to pay every fee, what I am missing here?
Just pay your dues; New York City does not take kindly to people that try to cheat them out of money.
My credit union is not even from NY state, I'm not getting who am I cheating here?
I don't want to cheat anyone or avoid any fee. I just happened to have already pre-approved loan in form of an empty check which I can sign to any dealer or private seller from craigslist and take the car immediately. They don't have the business option of the same loan. I am not gonna do use that if it's illegal. But then anybody who wants to Uber and don't want to report that to their bank commits fraud? Any idea what banks give reasonable auto loans and don't ask if its for business or pleasure?
Thanks again
 

censoredbytheFCC

Active Member
Thanks for your answers censoredbytheFCC
can you clarify few points

I'm willing to pay every fee, what I am missing here?
My credit union is not even from NY state, I'm not getting who am I cheating here?
I don't want to cheat anyone or avoid any fee. I just happened to have already pre-approved loan in form of an empty check which I can sign to any dealer or private seller from craigslist and take the car immediately. They don't have the business option of the same loan. I am not gonna do use that if it's illegal. But then anybody who wants to Uber and don't want to report that to their bank commits fraud? Any idea what banks give reasonable auto loans and don't ask if its for business or pleasure?
Thanks again
Since it's your credit union that gave you the check, i would imagine they want to follow up on the sale; it's very unlikely that they will, but there is a chance that is not negligible. Wouldn't you want to check up on a sale somebody rang up using your check? If your credit union is out of state, that makes this a federal manner, even worse. I know you have every good intention of using the car for TLC, but the way you are describing the transaction sounds fishy. It's not even about Uber, it's the fact that you're using the car for commerical purposes. You can easily do other jobs with the car like Juno, Via, Lyft, Amazon Flex, etc. That's what TLC plates permit you to do and earn profit from it.

Banks and CUs want to make money off of interest, that's how they profit in the first place. If they give out loans for business purposes, they would obviously charge higher APR because they know you're making profit off of their investment in the first place. The loan agreements state this way better than I or anybody else on this thread can. You are claiming the car loan is for a personal car, a car that doesn't get as much miles as a taxi does. Just putting TLC plates on a car drops the value by 10%-15%. You are paying the fees for TLC, but by claiming the car is for personal use, the credit union sees this as cheating them out of their investment.
 

Uberman8263

Well-Known Member
Being that I was a former paralegal intern for traffic law and litigation, I've seen this same scenario with the lawyer I worked with with his client.

First off, TLC requires that you present the office with the ownership agreement or lease agreement. The dealership will know you are going to make the car commercial plated, and the dealership can possibly report it back to your credit union should the representative want to verify the loan was cleared.

You are basically bait and switching your credit union into giving you a personal auto loan when it's really for business/commerical purposes. You have to pay extra since the city and state of New York taxes you for using their roads, so that means you are evading the fees that everybody else is supposed to pay, not cool. It is difficult for the credit union to know your intentions with the car, but should they ever repossess it or look at it for accident damage, they're going to see the TLC plates and blue diamonds that say "taxi and limousine commission" and that's it. Loan fraud can land you a small claims lawsuit and can hit your credit.

Just pay your dues; New York City does not take kindly to people that try to cheat them out of money.
Do you still do guitar on the side?
 

avagyan

New Member
  • Thread Starter Thread Starter
  • #13
I've asked my credit union they've responded that if one day they will find out I'm using for business they will convert it to a personal loan with higher APR, and I will have to prepossess it. There is nothing fraudulent here (ok maybe borderline without crossing the border lol)
I'll go to finance forums but since I'm here already does anyone have an experience with registering as personal and re-registering to TLC plates (DMV/TLC/Insurance)-wise. Will I end up paying more, double taxed, etc.?
 

Uberman8263

Well-Known Member
I've asked my credit union they've responded that if one day they will find out I'm using for business they will convert it to a personal loan with higher APR, and I will have to prepossess it. There is nothing fraudulent here (ok maybe borderline without crossing the border lol)
I'll go to finance forums but since I'm here already does anyone have an experience with registering as personal and re-registering to TLC plates (DMV/TLC/Insurance)-wise. Will I end up paying more, double taxed, etc.?
Will the higher interest be retroactive?
 

blueber

Well-Known Member
How to buy as personal and make it commercial?

I’m going to rent for the first 2+ weeks (because of the uber promo) but want to get a car in advance (planning to buy out of a dealer’s auction). Got an "empty" (2.5% up to $20K) check from my credit union and looking to buy a Camry (what color to buy, black?). The problem is my bank (credit union) won’t allow it for uber/business use and if finds out will convert it to a personal loan with huge APR. So the idea is to add to my own personal auto insurance when registering in DMV and transfer/convert to a commercial insurance after that. Does anybody have any experience with this theory? Should I register only once? What are the best ways pros and cons?

Also once I’ll have the car what base is the best, where to shop for insurance (have clean record), how long it takes to get car plated/stickered?

Status: Just lost my real job, completed everything and waiting for TLC license (how long it usually takes to get approved/receive)

Thanks!

BTW, be very careful asking any uber related question to your personal insurance. Almost got my geico premium raised merely for asking if they insure for uber durring the call. CSR told me that they don't do commercial and when I said ok-than-kyou-bye she told me not to hang up and stay on hold while she put notes on my account. Had to sign papers (they've sent later) that I’m not using my old car for business, they didn’t even realize that it’s impossible to do that in NYC.
Just put personal plates and insurance on the car and then convert it when you are ready to go tlc. Dont tell ur credit union about it. Fraud my ass. Banks are crooked establishments anyway. Just look out for yourself because i can guarantee you the banks arent looking out for you.
 
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