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.

  • 67 Posted by steven.francisco@sbcglobal.net on Thu Sep 3, 2009 9:43PM EDT Report Abuse

    If you can't make the payments, you can't afford the car. Actually, if you can't afford the car WITHOUT payments, you can't afford the car. The average monthly payment for a car, if put in a JAR for 6 months would buy a decent USED car that is all most people NEED.

  • 68 Posted by tbhoneycutt@att.net on Thu Sep 3, 2009 9:57PM EDT Report Abuse

    I can afford any car payment there is. I would NOT buy from any lender that uses it.

  • 69 Posted by nefertity2@sbcglobal.net on Sat Apr 5, 2008 9:10AM EDT Report Abuse

    Unexpected misfortune can happen to anyone at anytime. I would hope that these lenders installing these gadgets will allow borrowers at least 2 months before activating them in order for the borrower to get back on his/her feet. nefertity2

  • 71 Posted by trkrtrash@sbcglobal.net on Sat Apr 5, 2008 9:14AM EDT Report Abuse

    Hey!! Why not stick one of those things in your brain and when you don't do what your told they will turn your ability to function off!!!!! Give away your freedom people give away your life!!!!!! SUCKERS

  • 72 Posted by epasek@sbcglobal.net on Thu Sep 3, 2009 3:55PM EDT Report Abuse

    Living beyond one's means. That is what this is all about. If folks would just stop and think about the future they would live differently. It is not the lenders fault. We are all given time to review and question the loan documents. If you don't take the responsibility to do that, that is your own problem. Yes, all the over extended credit is crushing us, the economy, and will collapse us into a recession/depression. When the "play money" stops finally moving there will be thousands of people affected. As witnessed in these comments many people will demand the blame be placed everywhere else except where it truly belongs. They will demand to blame the banks, loaners, etc. and while some will be culpable for predatory lending...most will not be. It is ourselves that is responsible for incurring the debt. We signed the papers, we failed to review the documents, we chose to buy the most expensive car we could afford not the one we could reasonably afford, we bought the most expensive house, had to have 5 credit cards, the biggest tv, cellphones for every family member, computers for everyone too. All at the expense of planning for the rainy day and now at the expense of the economy because we can't pay. You see, it isn't the lenders. It is ourselves. We are the only person responsible for those decisions. No one forced us to do any of those things. When the house of debt finally falls it will be a rude awakening to everyone. People who never should be affected by it, will be.

  • 73 Posted by wkc81@swbell.net on Thu Sep 3, 2009 10:48PM EDT Report Abuse

    As a person in the industry, these devices have been around for quite a long time, years in fact. There is also a mixed reception among industry leaders as to the impact of these devices. This device can't put money in the pocket of a customer that simply can't get their hand on it. It can create a little incentive to "find" the money. However, the only significant change this device makes is in payment direction. Instead of a lender having to call a customer when they are delinquent, the customer suddenly starts calling the lender BEFORE they become delinquent. This allows a lender to have a smaller collection staff and ultimately a better loan loss and write off outlook. It's not all roses for lenders however; because there are countless customers that have a VERY negative opinion of these devices. These opinions are based on outright negative perception, who wants to be stuck with the "scarlet letter" of a payment interrupt device when your out on a date and it starts beeping? Another reasons these devices have had such bad reaction from end consumers is that, notably in the beginning, they were prone to communication protocol errors. This meant that, depending on the manufacturer of your device, if you travelled into too rural an area, some of the devices wouldn't function properly. Who wants a car that won't start even though they made their payments on time? These reasons have caused numerous lenders to stay away from the devices; so I would advise consumers to shop around before they purchase a vehicle with one of these devices. Also, don't hesitate to ask if the vehicle you purchase will have a starter interrupt device on it. They should be forthcoming with an answer at the dealership.

  • 74 Posted by lbasswilliams2004@sbcglobal.net on Thu Sep 3, 2009 4:57PM EDT Report Abuse

    I'm sorry, but not paying a car payment or a credit card payment after you signed binding documents stating that you would is just another form of stealing. I would, also, like to say that I think there is something very wrong with car ads stating "no credit, bad credit" we can put you in a car. "No credit, bad credit" should be an indication that the borrower has an existing problem and the lenders should open their eyes to it. Who is at fault here? I don't know, but I do know that people who make their payments every month and live within means feel cheated and angry.

  • 75 Posted by jampem@sbcglobal.net on Thu Sep 3, 2009 4:28PM EDT Report Abuse

    I have to agree with the device. It might make people make better fiscal decisions when it comes to purchasing a car. Too many peolple over spend on cars and don't realize until they are unable to make a payment. If it does force people to think before they buy, then I am all for it.

  • 76 Posted by gandpcyr@att.net on Thu Sep 3, 2009 4:06PM EDT Report Abuse

    Yes some people have a hard time making ends meet. I've been there myself. But the bottom line is, we make a promise to pay for the privilege of owning a car or a home. It doesn't belong to us until we make payment in full. The real owner is lending it to us based on that promise. When we don't pay, for whatever reason...we break that promise. We are in essence holding something that isn't ours to keep. It is a form of theft that most people don't acknowledge. Why shouldn't a person have the right to try and protect themselves from loss. Any one of us would want to protect what is ours, why shouldn't lenders?

  • 77 Posted by lkstknight@att.net on Thu Sep 3, 2009 6:55PM EDT Report Abuse

    The real issue here is the fact that subprime borrowers (cars and homes) come out better when they extend credit far beyond the ability of the customer. They put them in cars and houses that are out of their means. Who wants to have sympathy for someone who is being defaulted on a $200,000 house or a $25,000 car, when they only need half of that or less to get by? There are consequences for poor choices.

  • 78 Posted by harveyklein77@att.net on Thu Sep 3, 2009 4:17PM EDT Report Abuse

    What a great idea! Just looking at the postings it appears that many people believe we owe them a car. These poeple need to start taking responsibility for themselves. I bet most of them are spending money on booze, cigaretttes, drugs, junk food, etc, etc.

  • 79 Posted by godzman@sbcglobal.net on Thu Sep 3, 2009 4:10PM EDT Report Abuse

    where is this being deployed and by whom this article seems very unbelievable, what controls are in place to simply keep a person from removing the device and bypassing the switch. I don't think this is happening dealers ard car manufacturers are having enough difficulties just trying to sell cars, once they are off he lot they certainly don't want them back.

  • 80 Posted by wkc81@swbell.net on Thu Sep 3, 2009 10:48PM EDT Report Abuse

    As someone in the industry, these devices have been around for quite some time, years in fact. And there is a mixed reception by lenders, they are not loved by all. First, these little devices don't magically create cash in a customer's pocket. They can spark a little creativity when it comes to coming up with a payment, but that's about it. The thing these devices really accomplish is changing payment patterns. Collectors no longer have to wait until a customer is late on a payment to make a collection call. Suddenly, customers are making calls to the lender BEFORE they are late on their payments. Hopefully, this allows lenders to shrink their collection staff and have better loan loss and delinquency numbers. However, many lenders still stay away because of the bad PR these devices create. What customer wants a car with the "scarlet letter" emblazoned on it? Your out on a date when the device starts beeping at you. Bad PR. What customer wants this device, that because of technical problems, strands you because you are in too rural an area even though you made your payments on time? None, also bad PR. These reasons have led many lenders to still stay away from these devices. My advice to consumers of vehicles that might have these devices, ask the dealership before you purchase if the vehicle you will be buying will contain a starter interrupt device. If they answer is yes, they shop somewhere else. Ask that question BEFORE they run your credit, otherwise you'll make your shopping experience more difficult. Best of luck.

  • 81 Posted by danaeph@verizon.net on Thu Sep 3, 2009 3:34PM EDT Report Abuse

    i have this device in my car i think it is a great idea. if the car payment is due onfriday i have until tuesday at 12 in the afternoon to make a payment or they will shut my car off i never had this problem.

  • 82 Posted by ancientwizard@sbcglobal.net on Thu Sep 3, 2009 2:53PM EDT Report Abuse

    Bravo!!! There way too many people in todays society that know how to manipulate the system. The defaulting debitors, the entitlement scammers and the non paying renters are probably the worst burdens to the general population. We the honest average taxpayer are the ones that have to pay for all of them to scam us out of our HARD earned money. Here is a all to common senerio. Say I but a property to use as a rental property. I pay a higher loan rate to cover credit defaulters. I work hard to fix up a blighted house to make it liveable again. My property taxes are higher because of the entitlement abusers continual drain on the system. Arenter moves in and after a few months refuses to pay his rent at all. He knows it can take up to five months to go through the court system in order to legally throw the bum out. Mean while he is not paying anything while destroying your property and racking up utility bills that you will ultimatly have to pay. It's not usually a case of not able to pay as much as not willing to pay. This device will tip the scales a few grams back toward center. Why should dishonest have-nots be able to easily take away from hard working haves??

  • 84 Posted by pacofield@sbcglobal.net on Thu Sep 3, 2009 7:48PM EDT Report Abuse

    RYEBREAD?? HMMMM. DEBTORS PRISION, NOT A NEW CONCEPT, BUT HOW HAS THAT ELIMINATED OTHER CRIMES, LIKE MURDER, AND JUST LIKE ANY OTHER SCENARIO IN LIFE THE POOR WORKING CLASS GETS THE STIFF BECAUSE THERE IS NO WAY TO GET BAILED OUT. THE PREDATORS(BANKS) HAVE SET TRAPS THAT ARE ABSOLUTELY PERFECT FOR SNAGGING BORROWERS THAT HAVE NOT PROVEN THEMSELVES TO BE DEPENDABLE. THAT SOUNDS LIKE A DRUG DEALER THAT GETS ATTACKS HOOKED ON DRUGS AND EXPECTS THEM TO GET THE RESOURCES BY ANY MEANS NECESSARY TO SUPPORT THE HABIT. GREED BEGATS GREED.

  • 85 Posted by jc54bravo@sbcglobal.net on Thu Sep 3, 2009 4:30PM EDT Report Abuse

    cptn2u, I think your the dumb a$$, this device along with car dealers should help consumers help themselves. Hopefully when a person walks onto a lot hoping to buy a car the sales rep. will let the person know if they are going to require this device and what is the device's purpose, in hopes of helping the consumer make the right choice. I find it totally stupid when people buy things they know they can not afford, and get mad when they are taken away. Now that is dumb!!!

More Posts: First Prev … 3 4 5 6 7 … Next Last

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.