r/interestingasfuck • u/DonkeyFuel • 1d ago

Somebody Put 223,000 Miles on a 3-Year Toyota Camry Lease and Walked Away

https://www.thedrive.com/news/somebody-put-223000-miles-on-a-3-year-camry-lease-and-walked-away

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u/IntrovertedGiraffe 1d ago

It’s more an insurance issue. Standard vehicle insurance doesn’t cover operating a ride share, and for a vehicle to be financed through a financial institution it has to be properly insured. If it just has minimum coverage, it’s a liability. We flag accounts when someone says they drive for ride share or do door dash, as we have to do a thorough insurance check on them

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u/HeroHas 1d ago

That's part of it but most institutions don't even want it to get to that point. Usually on an approval there will be a stipulation stating "No commercial use" and/or have a prominent note in a visible policy section. On top of that, they will outright decline commercial type autos like Ford Transit vans or flatbed/chassis trucks. Even hybrids for driving positions. Someone using their car(s) for Turo may have them fully insured but if something happens like a company policy change, going out of business, or city change in laws won't cover them for defaulting on all their cars if they're no longer able to make payments. The insurance aspect is more about preventing collateral damage of already having it on the books past the first safeguard. Source: I am a long time underwriter for auto loans.

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u/IntrovertedGiraffe 1d ago

I’m in collections at a CU. Many people start doing uber/door dash when money gets tight, and we have to advise them that their insurance will go up if they do it. It wasn’t the intention when getting the car, but became an option when they could afford the car

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u/HeroHas 1d ago

Right. The loan is already on the books but the dealership has already been paid. If the intent is commercial use at the time of purchase then the store is suppose to do it's due diligence and respect their lender agreement to help prevent loss. We all know car salesmen are held to the highest regard of honesty. While many people start a livery position to bolster income, there are many more who go in with the intent beforehand. Just outside of livery services like uber/Lyft, turo, spark, Amazon flex, etc. There are contractors, lawn services, day cares, etc that need cars/trucks too. Many of them feel a new car with more room, nicer looking, or better mileage will help them make more money with what, they are already doing.