Missed a car payment? Good luck starting the car

Thu Apr 3, 2008 8:55PM EDT

See Comments (352)

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.

 

Top 5 Posts

Comments on Missed a car payment? Good luck starting the car

Post a Comment

Join in the discussion. Here you'll see the comments in the order they were posted.

  • 27 Posted by martonbarry@att.net on Thu Sep 3, 2009 7:09PM EDT Report Abuse

    I have comments on both sides. First, I've made my payments and have good credit but there have been times that it has been difficult - like when I've lost my job. There have been times when I've been a day or two late waiting for my next paycheck. I've even had payments mailed on time that got lost in the mail. My wife cancelled a check and it cost $30 to do that. If you are tight on money and a check is lost, $30 may mean a weeks food. Note that this shows the flip side.... That the banks want us to remember that they are people but they don't always remember that we are people too. I think that these devices are opening dialogue about an issue that needs discussion. Remember, not everyone who has bad credit has made a purchase over their heads. Some may purchase a Toyota Corolla new for about $13,000 which is in the used car range. Think that they are able to make payments but gas prices go up $1.00 a gallon from when they purchased the car. Add that because gas prices increase, so does food (another necessity). You have every intention to make payments but your hours just got cut or you lost your job because your employer outsourced to China. My point is that not everyone who cannot make a payment is irresponsible or malicious. Some are just human.

  • 28 Posted by ms6360@sbcglobal.net on Thu Sep 3, 2009 7:28PM EDT Report Abuse

    Reference post #61-Leave it to someone to make an ignorant and racist comment. What does this issue have to do with race? Poor people exist in all races, white, black, hispanic, etc... Once again racism rears its ugly head. Go back to sleep, its obvious you missed the point on this one.

  • 29 Posted by rccoopersr@att.net on Thu Sep 3, 2009 8:31PM EDT Report Abuse

    From reading the above comments ... I can certainly tell who the lenders are and who are the buyers. But ... what we still have here is A FAILURE TO COMMUNICATE. Guess which I am! Hint ... I'll bet I can wire around that little box .. !!

  • 30 Posted by verytight1@sbcglobal.net on Sat Apr 5, 2008 6:41AM EDT Report Abuse

    this is ridiculous! The industry is taking societies life! people dont seeit but its slowly happening! ok true dont get something that you cant afford but NO ONE KNOWS WHAT IS GOING TO HAPPENTO THEM IN THEIR LIFE TO CREATE A FINANCIAL UPSET WHICH MAY CAUSE YOU TO BE LATE PAYING A BILL! YOU HAVE COMPANIES SHUTTING DOWN MOVING OUT OF THE COUNTRY LAYING OFF YOU CAN GO TO WORK ONE DAY THE NEXT DAY YOU SHOW UP FOR WORK AND THE COMPANY HAS CLOSED ITS DOORS AND LEFT YOU WITH NOTHING ESPECIALLY AFTER MANY DEDICATED YEARS OF SERVICE! WE ARE NOT IN A RECESSION BECUASE PEOPLE CANT PAY THEIR BILLS WE ARE IN A RECESSION BECAUSE THE PRESIDENT HAS GOTTEN GREEDY!THE PRICE OF EVERYTHING IS UP TRIPLE FOLD SINCE HE'S BEEN IN OFFICE YET PEOPLE ARE LOSING THEIR JOBS VERY FAST HE IS CUTTING EVERYTHING TO SPEND MONEY ON A WAR THAT IS ? COMPANIES ARE SHUTTING DOWN PERIOD SO SOME PEOPLE WHO HAVE HONESTLY WORKED HARD AND GOTTEN DOWN ON THEIR LUCK BUT DOING EVERYTHING THEY CAN TO STAY ON TRACK WITH THEIR BILLS ARE A LITTLE BEHIND OR LATE! THERE ARE SOME PEOPLE TRYING SO DONT PUT THEM DOWN AND KICK THEM UNTIL THE CIRCUMSTANCES ARE KNOWN! FOR THE PERSON WHO THINKS THEY SHOULD GO TO JAIL FOR WHAT ? I HOPE YOU HAVE TO NEVER EXPERIENCE A LOSS OF INCOME IN ANY CAPACITY B/C THEN YOU SAID GO TO JAIL ON THE SPOT THEN PACK YOUR BAGS! BLAME THE PRESIDENT FOR THE RECESSION NOT THE WORKING CLASS PEOPLE WHO ARE STRUGGLNG TO KEEP UP WITH THE RAISING BILLS TAXES FOOD CHILD CARE ETC ETC THE WORLD SHOULD SEE ITS THE POLITICANS WHO'S MADE THIS MESS NOT THE DEDICATED AMERICAN WORKING CITIZENS!

  • 31 Posted by mooremtmn@sbcglobal.net on Thu Sep 3, 2009 7:26PM EDT Report Abuse

    There will come a time in an emergency situation where this device causes someones life. Then,like the H.O.V.lanes installed in major cities allowed by our Government,we can proudly say life is not worth living................

  • 32 Posted by shadtigg32@sbcglobal.net on Thu Sep 3, 2009 9:15PM EDT Report Abuse

    this is stupid.. my car is the only way i have to travel the 30 miles to my work. So if you put this device on the autos and late, well when living pay check to paycheck to pay all your bills.. looks like a 2 hundred dollar car would be the best option at least it can be replaced for less than a car payment.. there goes another ding in the economy.

  • 33 Posted by shadtigg32@sbcglobal.net on Thu Sep 3, 2009 9:15PM EDT Report Abuse

    Lets see ryebread45014, hope you are in a tough spot some day.. the reason people cant pay there bills is because electric, gas. gasoline. water.. phone and interest rates have risen and that is not there fault that is the companies who are money hungry

  • 34 Posted by scmadm@sbcglobal.net on Thu Sep 3, 2009 9:08PM EDT Report Abuse

    It's easy to say you wouldn't buy a car if it has this device on it but if all the "buy here pay here" places have them, and they probably will sooner or later, a person with bad credit (those who have to use such places) will have no choice. While what some say about needing a car to earn money to make the car payment they are already late on is true, I find that if you HAVE to make a payment on something as important as a car or you would immediately lose it, you rearrange your priorities and make the payment and perhaps not spend it on things not really needed as we Americans tend to do. Our houses may be going in default but we'll keep spending hundreds of dollars a month on cigarettes and alcohol and eating out or other non-essential things. Do what you must do to pay what you must pay. If you don't what a car with a device, buy a car you don't have to make a payment on. I sure did with my first car. Yeah...it wasn't a 2008 Toyota but it did get me around.

  • 35 Posted by pogojump929@sbcglobal.net on Thu Sep 3, 2009 8:16PM EDT Report Abuse

    What happens if you suddenly get laid off? Are trying to find work and now you can't get to work ? What if the car is a lemon ? What if the lender makes a mistake? You get sick ? A lot of what if's but real life event's. Subprime means a much higher interest rate than should be charged and mean's the lender accept's a risk. This take's away the risk and should result in a much lower rate. Bet you it doesn't and is just taking advantage of people who just don't manage money well or really don't make enough in the first place to afford the payment's. Shame on this company.

  • 36 Posted by rmapes@att.net on Sat Apr 5, 2008 7:03AM EDT Report Abuse

    There is already a device like this being used by some of the finance companies here in Michigan. I don't know much about them only that I have heard that they have been known to screw up and shut you off when they are trying to shut someone else off. Also, even if you are going to be late on a payment, you can call the finance company and work something out. With that said, I still think it is just another example of "big brother" watching us all.

  • 37 Posted by dsss@sbcglobal.net on Thu Sep 3, 2009 3:49PM EDT Report Abuse

    This isn't such a new concept. I remember my grandmother telling us how when she bought a new refrigerator back in the depression era there was a coin box on it into which she had to insert a coin each week as payment on the loan or the frig would not work! You want something.......you are responsible for paying for it.

  • 38 Posted by munaco4 on Thu Sep 3, 2009 7:30PM EDT Report Abuse

    A year ago, my husband was laid off for almost 5 months. Unemployment only paid a third of what we were use to. We had two car payments and a house payment. We managed to stay on top of our payments. Its people's priorities that get them into financial trouble. Get what you need first what you want second!!!

  • 39 Posted by louisfowler_2000 on Thu Sep 3, 2009 6:57PM EDT Report Abuse

    lmao this is soo funny i used to install this rip off little gadjet when i worked as a used car dealer and it is so simple to bypass LOL just trace it back up the column to the igniton switch and reverse the wires back to there original colors and your back in bussiness evn a drunk monkey can bypass this worhtless stupid little gadget in ya cant figure it out just look me up i can get ya around that trap in 3 minutes.....

  • 40 Posted by stealth1065@verizon.net on Thu Sep 3, 2009 9:40PM EDT Report Abuse

    This is to ryebread45014. Unfortunately, in life unforeseen events...unexpected events affect us all. Some more than others. Be it a loss job. an illness or taking care of a sick parent. And it is to bad...no it is darn sad that you feel this way, because your way of thinking help to put our country in this situation. You must work for or own one of the company's that help to swindle people out of their money. And if you are, I hope to see you in front of a congressional hearing squirming and sweating in your seat. If you ever suffer a streak of bad luck ( lost of a job) and you find your hard earn savings dwindling to nothing. Just remember your words. Who knows, maybe I will be the one that takes you to jail on the spot. I mean, since this is the way you feel. I would rather see a more deserving person living in your home.

  • 41 Posted by heiy@sbcglobal.net on Thu Sep 3, 2009 4:18PM EDT Report Abuse

    I agree ryebread45014 you are a dumbass!!! Hope you are not on the recieving end of this when you can't make your payment!!! What should you do if you lose your job? Go directly to jail? DUMB ASSSSSS!!!!!!

  • 42 Posted by luv2flyfish@sbcglobal.net on Thu Sep 3, 2009 7:00PM EDT Report Abuse

    Thats sick, people need to pay thier bills, but this is just sick. I would'nt even think of buying a vehicle with such a device

  • 43 Posted by ayladog@sbcglobal.net on Thu Sep 3, 2009 3:00PM EDT Report Abuse

    I love! Hospitals will someday use it on people who have a Pace-Maker implant. Good ol'e "Big Brother" watching over us.

  • 44 Posted by peckerh@verizon.net on Thu Sep 3, 2009 8:05PM EDT Report Abuse

    ctn2u- you have the wrong attitude!!!! I agree with ryebread You think that its alrite to be late but i bet that you hate the late pyments also What would you think about your boss, if he didn't pay you on time? Now the ball is in your court, MAKE YOUR SHOT.

  • 45 Posted by jamesalvin@sbcglobal.net on Thu Sep 3, 2009 4:27PM EDT Report Abuse

    This is RIDICULOUS,these devices don,t only stop your car from starting they will shut your car off while you are driving and comprimise the safety of you and your family.What is the world coming too?

Post a Comment

Sign In to Post a Comment

My Tech

Please enable your browser's cookies to activate the My Tech column.

Also on Yahoo! Tech

Computers Home Office Wi-Fi & Networking Phones & PDAs Cameras & Camcorders TV & Home Theater Portable Audio
 

Site Map | Tour | Subscribe to Yahoo! Tech

Question and Answer content at Yahoo! Tech is written by Yahoo! users at Yahoo! Answers. Yahoo! does not evaluate or guarantee the accuracy of any Yahoo! Answers content. For more information, read the Full Disclaimer.

Opinions expressed by the Advisors are their own and do not necessarily reflect the views of Yahoo! Inc. Yahoo! receives no compensation from any manufacturer or distributor nor does it compensate any Advisor for the coverage of any product or service in any Advisor's content.