Missed a car payment? Good luck starting the car
Thu Apr 3, 2008 8:55PM EDT
See Comments (558)
I've never heard of this trend before, but according to USA
Today, subprime borrowers buying a car are required to have a little box
mounted under the car's dashboard that forces them to make payments on time.
A light on the box flashes when payments are due, and if the payment is not
made on time, the box starts to beep until a four-digit code is punched in to
reset the system. The only way to get this code is by making the payment, and
if that payment is not made on time, the car won't start.
Apparently, customers hate them, while lenders love the little boxes because it lowers default rates. Sekurus, the company who sells these boxes, has sold over 250,000 at $250, and its competitors are looking at ways to make these payment enforcement devices more efficient. One company is selling wireless systems that sends text messages to the car, and another one is adding GPS functionality to the device to make it easy for lenders to repossess the car.
I know times are tough for everyone, but is this really necessary? Before you know it, we'll have these little boxes locking us out the house too. It's just crazy.
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2 Posted by keith_m_kaufman on Thu Apr 3, 2008 9:58PM EDT Report Abuse
Seems like a great idea. Too many people treat lenders like faceless organizations and that the person in default is somehow a victim. Lending money is a risk and if this reduces the number of defaulted loans and late payments, it is good for the entire borrowing populous and also will have a direct positive effect on the borrowers credit rating.
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3 Posted by teeka92 on Thu Apr 3, 2008 11:51PM EDT Report Abuse
This is ridiculous! Whoever thought of this must not have to try and make ends meet every month. Although most people can make their car payment, I'm sure there are some that struggle and without a car, can't even get to work to make the money. What a stupid thing to make and I wouldn't buy a car through that lender if they required that.
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4 Posted by ryebread45014 on Fri Apr 4, 2008 1:02AM EDT Report Abuse
If you cant pay you cant drive...if you cant pay you can't sleep (homes)...if you cant pay your bills you shouldn't get the perks of people who can. I do not feel sorry for the people this effects. This is why we are in a recession because people can't pay their bills...they should be taken to jail on the spot!
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5 Posted by peapot1 on Fri Apr 4, 2008 7:20AM EDT Report Abuse
Not to worry about this too much. Bankers like Keith Kaufman and Ryebread will soon have all the cars they can handle in their bank parking lots. They will have cars in the streets, in traffic at intersections, on the freeways,WOW!! WHERE will their "people with perks" customers park? What will the Auto makers do? Cars all over the streets that won't go. Good for gas milage tho.. Bad for the Arabs..
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1 Posted by kryskasia on Thu Apr 3, 2008 9:32PM EDT Report Abuse
This is crazy. We all struggle to make ends meet, and someone came out with such dumb idea of make it even more difficult. What if a car is your main factor of making money, what if you are going through a rough time and this time you can't pay your bill on time? They will cut off your only source of earnings because you were late one day? So, if you are a taxi driver how are you supposed to go to work and make that money to pay for the car? Huh? I's the dummest innovation I've ever seen.