Gadgets Get Subprime Car Buyers to Pay

We’ve heard of engine shutoff devices for delinquent car owners, but it seems the industry behind the technology is booming. With subprime loans increasing, car dealers are leaning on devices that force owners to pay their monthly bill or face a car that won’t run as it sits in the driveway waiting for the repo man.

One company that manufactures these devices says it has grown 30% in the past few years. Some of the devices require the owner to punch in a code, which is provided after they pay each bill so the car starts for the next 30 days. Others work wirelessly and can be activated online.

Whichever device is used, dealers are happy. They get to sell cars to more people whose credit might have kept them from ownership, and the devices keep repossession rates down. 

High-tech gear disables car if borrower misses payment (USA Today)  

Comments

[L]

So what happens when someone ends up down on their luck and is late on their car payment. The car won't run, so they can't get to work, so they loose their job, so they have no income, so then they can't get caught up on the payment.

Not everyone who falls behind is a bum, and dead beat or a loser.

And how do they prevent people from just removing these devices themselves? It would have to come off after the loan was up right?

[woogie]

One would assume that if you are responsible enough to get a loan, you are responsible enough to call the holder of said loan and work out a payment plan when you get behind.

The fact that these devices exist is proof that personal responsibility is not a given with people. You don't pay your car loan you don't get to use the car. How much simpler can it get.

[woogie]

One would assume that if you are responsible enough to get a loan, you are responsible enough to call the holder of said loan and work out a payment plan when you get behind.

The fact that these devices exist is proof that personal responsibility is not a given with people. You don't pay your car loan you don't get to use the car. How much simpler can it get.

[T]

I say pay cash for everything as I do. Save for what you need. It wouldn't hurt my feelings if lenders went out of business anyway. They not only make money off of you with ridiculous interest, they also control you and your life (ie; this new "On Time" device). Trust me, you don't need to be in debt to anyone just to own a decent vehicle. Save! If you can't afford it don't get it. I don't buy into them "trying to help me out by forcing me to pay on time". The Bottom Line is the only thing that concerns them. EVERY human falls on hard times at some point in their life. In all fairness, my brother had a good experience with a lender on his vehicle but that seems to be rare. There was a time when we didn't have credit and debt. I personally like to keep it that way. I'm living happy wouthout debt.

[John Brent Gavino]

What happens if the owner or car is currently in use and his account expires or something? Will the car stop?

[Bob]

You guys fell for this? April fools posted a tad early. ;)Imagine the liabity issues that the companies would get caught in if the car ever refused to stop, say at a sketchy gas station on the wrong side of town at the wrong time. Something like this would never happen.