Though much of Low’s other legislative efforts have been very progressive and socially sound, AB 828 has introduced a profoundly corrupt element into California’s commercial transportation and loan markets.
AB 828 allowed TNC, Transportation Network Company or Rideshare Company (Uber & Lyft), vehicles to receive an exemption from registering commercially with the California Department of Motor Vehicles.
This exemption has promoted a network of corrupt dealerships, cartel drivers and automotive financiers to violate federal lending and securities laws.
It is Ride Safe’s belief this vast network of corruption is not exempt from federal law.
The interest rates for consumer auto loans are lower than the rates for livery (commercial vehicle) loans.
True personal vehicles drive an average of 12,000 miles annually. Consumer auto loans base the depreciation using a 12,000 annual mileage rate. In San Francisco a fully utilized taxi driving both shifts does 100,000 miles a year.
What happens when a ridesharing driver defaults of the loan or the vehicle is in an uninsured wreck?
Those losses are passed back to the “consumer” automotive loan sector. The cost is passed on to general public via automotive loan inflation.
What happens to the investors of these defaulted “liar loans” that are bundled into investments?
Pension Funds and other investors lose money.
Reports show an increase in the amount of defaults in automotive lending since 2013 to 2017. What percentage of those defaults involve a ridesharing vehicles?
How would victims of this fraudulent activity be made aware?
SF Shooter 13 is a Ride Safe Protected Source correspondent embedded in the San Francisco commercial transportation Market.