Since a few months back, we’ve been getting a lot of questions about assume balance of Uber ready vehicles from aspiring Uber Partners that want to start their Uber business.
Being one of the pioneer Uber Partners in Manila (we’ve been operating for about 2 years now), we honestly think that assume balance of Uber ready vehicle is OK for as long as you are fully informed. Kumbaga, alam nyo ang pinapasok nyo. 🙂
Assume balance of Uber ready vehicles have its advantages and disadvantages for both the previous owner and new owner. Kaya para matulungan namin kayo, ito ang mga information at considerations na dapat ninyong malaman if nagbabalak kayong mag-assume balance ng Uber ready vehicle OR kung binabalak nyong ipa-assume balance ang inyong Uber/Grab ready vehicle.
Related: Why Consider a Second Hand/Used Car for Uber Manila?
NOTE:
The information in this article are based on our research. We haven’t really tried to assume balance an Uber ready vehicle NOR considered to have our vehicle assumed by someone else. So, if you have done this, we would greatly appreciate if you can share with us your experiences, thoughts and insights in the comments below. 🙂
1. Very Important Consideration: TNVS, Taxes and Liability
As per LTFRB, the TNVS Applicant is the VEHICLE OWNER as reflected in the ORCR.
excerpt from www.driveonuber.com
Ibig sabihin, kung ang Uber/Grab ready vehicle at ang previous owner nito ay nakapag-apply na for TNVS Certification o mayroon nang Provisional Authority or Certificate of Public Convenience, ang nakalagay sa records ni LTFRB ay ang pangalan pa rin ng previous owner.
Even if you’ve already “sold” the car to the new owner via assume balance of Uber ready vehicle, in the eyes of LTFRB, the name appearing in the ORCR as the owner is still responsible and liable for the TNVS operations.
Related: TNVS Frequently Asked Questions | How to get TNVS if vehicle not under your name
2. So what if the TNVS and the ORCR is still under the previous owner’s name?
Well, you know according to the LTFRB Memorandum, TNVS operators are independent contractors of the TNCs (Uber and Grab), this means the person who is the TNVS Applicant (the name that reflects in the ORCR) is responsible for the business.
This means all the taxes that should be paid by TNVS operations will still be tagged under the TNVS Applicant (that is the name of the previous owner). In case there’s a major accident *knock on wood*, the TNVS Applicant/Operator (the previous owner) will still be liable.
Ibig sabihin, kung pangalan mo ang nakalagay sa ORCR at sa TNVS Application, ikaw pa rin ang may responsibilidad sa TNVS operations (tax at kunsakali may aksidente *knock on wood*) at hindi ang new owner dahil hindi pa nailipat ang ORCR sa pangalan ng nag-assume balance. Hindi na ikaw ang nakikinabang sa TNVS operations, pero ikaw parin ang responsable sa mata ni LTFRB for taxes and liabilites.
Pero kung OK lang naman sa inyo na sa mata ni LTFRB, kayo parin ang may responsibilidad sa TNVS operations, sa tax, at sa potential liabilities, edi wala naman pong problema. Maswerte ang maga-assume balance dahil legally, hindi sila directly responsible sa TNVS business na ina-assume nila.
3. But we have a Deed of Sale of the assume balance?!?
Yes, you may have executed a Deed of Sale between the two parties (the previous owner and the new owner assuming the balance), but according to LTFRB, they will NOT recognize this because they will only recognize the name in the ORCR.
Tweet convo with LTFRB last Aug. 2015
But don’t worry because this Deed of Sale is still valid but only between previous owner and the new owner.
Sa madaling sabi, kung magkaroon ng aberya sa taxes or something sa TNVS operations, ang TNVS Applicant (name in the ORCR) is responsible in the eyes of the government. Ang hahabulin ng BIR at LTFRB ay yung pangalan na nakalagay sa ORCR. Pero dahil may Deed of Sale, pwedeng habulin ng previous owner ang new owner dahil siya na ang nag-assume balance ng vehicle at ng TNVS business.
Nakikita nyo ba ang potential na gulo? 🙂
4. So what is the BEST way to assume balance an Uber ready vehicle?
The safest way is to have the ORCR transferred to the name of the new owner who assumed the balance. You can do this via LTO’s Transfer of Ownership. This is the only way that the new owner’s name will appear in the ORCR and the only way for LTFRB to acknowledge that the new owner is the TNVS Operator.
Once you’re able to do Transfer of Ownership, you can now file for amendment of the TNVS Certifications para mapalitan sa record ng LTFRB. As per the exact procedures of doing this, wala pang binibigay si LTFRB and/or Uber. We’ll publish an article once we get the exact and proper procedures.
5. Pero ang sasakyan ko ay naka-loan/in-house financing pa. Hindi pumapayag ang dealer/bangko na palitan ang pangalan sa ORCR hanggat hindi fully paid. Paano yun?!
Karaniwan sa banks at dealers na hindi pumayag na palitan ang pangalan sa ORCR hanggat hindi fully paid ang sasakyan. In the first place, yun nga mismo ang dahilan kung bakit nagpapa-assume balance na lang.
Maari nyo pong itanong sa dealer or bank kung paano ang proseso para mapalipat ang pangalan sa ORCR ng inyong ipapa-assume balance.
Muli, kung OK lang naman sa inyo na sa mata ni LTFRB, kayo parin ang may responsibilidad sa TNVS operations, sa tax, at sa potential liabilities, edi wala naman pong problema. Maswerte ang mag-assume balance dahil legally, hindi sila directly responsible sa TNVS business na ina-assume nila.
6. I’m the new Owner who assumed the balance, how do I transfer an Uber ready vehicle to my account?
A lot of new partners who have already assumed balance are asking how they can transfer the Uber ready vehicle to their account. This is the best way to do this:
- Create a NEW Uber Partner Account. [Refer to this step by step guide on how to create an Uber Partner Account]
- Enroll the vehicle under your account
- Make sure the banking details you enroll is your account NOT the previous owner’s account (baka sa previous owner mapunta ang payout) [Refer to this tutorial How to edit or Enroll Banking Details to receive your Uber Payout]
- Then, email Uber at partnersmanila@uber.com to request for a vehicle transfer. State the vehicle details, partner account details of the previous partner and your new account details.
- Finally, ask the previous Uber Partner to email Uber at partnersmanila@uber.com to confirm the vehicle transfer request.
Hope this article helped. Let us know in the comments sections if you have any questions or suggestions. You can also reach us at info@ubermanilatips.com. We would love to hear from you!
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Hi, if ever kumuha po ba ako ng assume balance unit (Grab ready) and mag register ako sa uber under my name naman, will uber still accept my application? since i know na hindi pa sakin naka pangalan ang unit.
Kindly refer to UberMNLTips’ TNVS if vehicle not under your name FAQ: http://ubermanilatips.com/how-to-get-tnvs-and-ltfrb-accredited-in-uber-if-vehicle-is-not-under-your-name/
Pd po ba nalipat UN kahit d pa fully paid ung assume balance na car?d ba may nakalagay na encumbered ma chachange name po ba UN thanks sa magiging sagot
Hi Jr, kindl refer to this post: http://ubermanilatips.com/truth-assume-balance-uber-ready-vehicles/
Ano po ba ang maganda? Uberx o uberblack?
Depende po sa kailangan ninyong sasakyan, kung maliit po or malaki. Refer here for the difference: http://ubermanilatips.com/basics-guide-to-uber-pricing-in-manila/
can accept uber my car is toyota vios 2013 model but purchased date is nov 29 2012….confused langpo ako
Here’s a full list of the vehicle requirements and accepted cars for Uber Manila, you can also get a car quote in this link:
http://ubermanilatips.com/become-uber-partner-uber-driver/list-of-accepted-cars-for-uber-manila/
Hi.
I bought a 2nd hand toyota vios 2015, ask ko lang po if need pa rin ng comprehensive insurance or pwede ang TPL lang? Sa nabasa ko kasi sa requirements ni uber nakalgay comprehensive or TPL. I just want to make sure lang po.
Thanks
Kindly refer to UberMNLTips’ TNVS FAQ: http://ubermanilatips.com/tnvs-faq-by-ubermnltips/
i want to work at night on my friend select car. should i open a new account, and if not how should i deal with him regarding pays and taxes?
You can register as a driver of your friend. Refer to this post: http://ubermanilatips.com/how-to-add-driver/
My take on Assume the balance. For the pro’s and con’s of this.
Advantage:
1. no credit check, no requirements, no bank statement, no nothing really, trust is the main issue here really between the seller and buyer. 100%
2. Contract – Affidavit / SPA over the account / registration / so basically you have power of attorney over this car basically so if anything happens to the car an accident or bumping someone while someone is walking across the street well it’s not the Owners fault it’s the Drivers fault why ? Because the SPA protects the previous owner since you are now 100% fully responsible for anything of anything regarding the account and the vehicle.
3. That’s pretty much the advantage of assuming a loan. You have a car and you get to drive it without any approval. 2nd best thing diba.
Disadvantage:
1. You’r paying every month for the next what 5 years or 3 years. That’s if you’re on time. This is where it get’s tricky. So who’s credit standing are you building ? The owners credit and not your’s why? Because your making payments to his/her bank. Under the previous owners bank account because the BANK is making a debit every month on that account. So now you are the depositor fore-say. After 5 or 3 years what’s going to happen when you decide to buy a 2nd car and get a BANK approval. Will you get approved ? NO why ? simple Bank is going to get your name and all your information. Being said. You’ve been paying monthly on time every month. Figuring out that you’re going to get approved this time. Well, sorry to say it’s a case to case basis but more likely, the previous owner will get the credit standing of good payer, on time, and possible an increase and the bank will issue him/her a credit card because of 5 years of perfect monthly payments. Plain and simple. Sometimes we don’t look inside the book rather we read the cover and the 1st page of a book. What lies inside a book is all the details of what really happens at the long run of Assume balance.
2.At the end of the 5 years or 3 years of the loan. The ORCR will be mailed to the address of the original owner. So if for any reason your late payer and he decides to not give it to you because of a bribe or just for whatever the reason. Basically another headache, but you get to drive a car with no approval and no requirements. Just saying. My Opinion
Assume Balance Works With UBER with no issues, but if it’s within the family. I know because it’s working well right now. But if it’s with someone you don’t even know and just met, well that’s 100% trust issue there. That’s your prerogative now. 🙂