New Device Disables Car if Driver Misses Payment
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New Device Disables Car if Driver Misses Payment
New Device Disables Car if Driver Misses Payment
I guess some are so desperate for a car, whether they can afford one or not, this "on time" box probably seems like a good idea!
Full Article: http://www.usatoday.com/money/autos/...terstitialskip
I guess some are so desperate for a car, whether they can afford one or not, this "on time" box probably seems like a good idea!
Millions of sub-prime borrowers have made car purchases contingent upon having an unusual option: a little box mounted underneath the dashboard that forces them to make their payments on time. A light on the plastic box flashes when a payment is due. If the payment isn't made and the resulting code punched in to reset the box, the vehicle won't start.. This year car and truck repos are predicted to hit the highest level in at least a decade, according to USAToday.
As more dealers look for ways to protect themselves, Sekurus, maker of these "On Time" devices, has a revenue goal of $20 million this year. Car dealers say most customers aren't thrilled to punch in a code with every payment but grow accustomed to the device. "We've used it as a tool to keep the repo rates down," says Jeff Hamilton, partner in Hamilton Classic Cars in Chester, Va. "We don't have to go after them as much." Most of his customers are required to make payments twice a month, and often wait until the last day, "when it starts beeping at them."
As more dealers look for ways to protect themselves, Sekurus, maker of these "On Time" devices, has a revenue goal of $20 million this year. Car dealers say most customers aren't thrilled to punch in a code with every payment but grow accustomed to the device. "We've used it as a tool to keep the repo rates down," says Jeff Hamilton, partner in Hamilton Classic Cars in Chester, Va. "We don't have to go after them as much." Most of his customers are required to make payments twice a month, and often wait until the last day, "when it starts beeping at them."
Full Article: http://www.usatoday.com/money/autos/...terstitialskip
Registered User
Joined: Jun 2002
Posts: 163
From: Tulsa,OK
Well this is not really new, they have had this in on Oklahoma City for a while now. This are usually done at some the shady Buy here, pay here lots. I for one would never buy a car with this on it.
Some friends of mine have this cars, if a payment is late, the car will not start, so you could be at the store, out of town, gas station it does not matter. No code, no start.
One buddy of mine bought a Caddie ETC, the device caused all kinds of electrical issues, they had to take it off. I bet its not that hard to to bypass, its probably just a kill switch to the ignition, I would disable mine if i had one. Thank God it has not made its way to Tulsa,OK yet.
Some friends of mine have this cars, if a payment is late, the car will not start, so you could be at the store, out of town, gas station it does not matter. No code, no start.
One buddy of mine bought a Caddie ETC, the device caused all kinds of electrical issues, they had to take it off. I bet its not that hard to to bypass, its probably just a kill switch to the ignition, I would disable mine if i had one. Thank God it has not made its way to Tulsa,OK yet.
Registered User
Joined: Mar 2006
Posts: 662
From: albany, ny
Registered User
Joined: Jun 2002
Posts: 1,817
From: O-Town
This is nothing new to the used car industry out here in KC. I know my friend bought a used car and got a loan on it from the dealer. He had the same kind of setup on his car. I'd never heard of this until he got that car. BTW, that was 3-4 years ago.
Registered User
Joined: Jun 2006
Posts: 2,092
From: lakeville, pa
yup very old, my buddy had a car with it 4 years ago also
Registered User
Joined: Apr 2006
Posts: 254
From: Wilmington, De
Some banks have gone to 96 mths and one even offers 120mths now. Bayview does 120. I worked for a dealership 6 years ago and we used Passtime devices on subprime people with 300 and 400 range credit scores. It's the main competitor of Ontime. It works great. Very few ever tried to disable it and if you do it's cause for repo. The payments were set up to be paid on your payday.
Registered User
Joined: Oct 2006
Posts: 976
From: SE MI
Mel Farr Ford L-M near Detroit used something similar 5 or 6 years ago that would shut a car down while it was being driven. Trouble with that is, if you are going at hiway speeds and all of a sudden your car shuts off, an accident usually occurs. After several law suits, it was discontinued. Mel Farr had financial difficulties and is no longer a Ford dealer.