gear disables car if borrower misses payment

MURRIETA, Calif. - When the light starts to flash, you had better have the cash.:smiley-rofl:
 
 
That's the reality for millions of subprime borrowers whose used car purchase is 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. The next step is a visit from the repo man.
 

As tighter credit crunches consumers, it seems business can only get better for Sekurus, a company based in this suburb east of Los Angeles. It's among several companies that market such devices.
 

"We're just starting to see that," says Sekurus CEO Mike Simon, as the potential market of an estimated 7 million subprime auto borrowers continues to swell.

The device helps stave off default, a growing problem. Car and truck repos this year are predicted to hit the highest level in at least a decade, according to Manheim, a wholesale auto-auction service.

As more dealers look for ways to protect themselves, Simon says privately held Sekurus has grown at a 30% clip in recent years. Revenue goal this year: $20 million.

A forerunner company to Sekurus was founded in 1995 to sell anti-theft devices for cars based on radio-frequency identification, or RFID, technology. But within a couple of years, lenders had another idea: Could engineers come up with a device to force car buyers to pay up on time?

Sekurus was founded in 1999 and started selling On Time, as the device is called. It has sold 250,000 at up to $250 each. Most are bought by finance companies or dealers who cater to the most troubled car buyers, those who need basic transportation yet have checkered credit histories.
 

The box's LED light starts blinking when a payment is nearly due. On deadline day, the unit not only blinks, but beeps. Motorists find it so annoying that it drives "them absolutely nuts," Simon says.

When the customer makes the payment, the lender gives them a six-digit code to enter into the box.
 

The device lowers default rates for subprime auto loan borrowers that typically run about 30% to about 5%, according to Simon. When default rates fall, lenders feel more secure offering financing for more valuable cars to high-risk customers. By forcing buyers to pay on time, the device also rebuilds their credit record.
 

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 the family-owned 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."
 

Cedric Brown, a loan specialist at Star Loan Acceptance Center in Clifton Heights, Pa., says he's had a great response. "We are able to help a lot of people who otherwise might not be able to get a vehicle," he says. A few customers, he adds, even grow to like the discipline it enforces.

Car dealers have a choice when it comes to such payment devices.
 

One Sekurus rival is Pay Technologies in Cleveland, which sells mostly wireless systems. Dealers can access accounts through the Internet and send a message to the device in the car as with a paging system. Again, the car is shut down if payments are not made.
 

"It's a huge improvement," says President Jim Krueger. He says Pay Technologies started a decade ago with a keypad system "and I can't tell you how many calls we got on the weekends" from customers who lost codes or tried to enter the wrong one.
Another competitor is PassTime USA in Littleton, Colo., which uses a mix of keypad and wireless systems. President Frank Jacobsen says he thinks the credit crunch will "make a difference" in sales, along with payments from the federal economic stimulus package that could boost car buying.
 
Sekurus is continuing to introduce products. The latest enhancement is coupling the keypad to a global positioning device. Not only will the car's starter automatically shut off, but a message will go to the loan holder with its location to make repossession easier.
 
Simon says he hopes the new system will give lenders added assurance, allowing more high-risk borrowers to buy better cars.

WTF!!!! WHACKNESS!!!!!
 
You know who llives in Murrieta, CA..... VIP Tint + Glass! HAHAHAHHA!
Oh SNAP Norman!
 
That sucks especially if you're like me and like to wait tell the day of to pay your shit!
Even if you have the money! HAhahahahaha!

HAHAHAHAHA there goes a lot of people's rides!!!! Later on I wouldn't be surprised if dealerships install these things when you service your car and without your knowledge!! technically the car is still there's till you pay it off hahahahahaha :smiley-rofl:

I like that idea. Keeps people honest.

Too bad it's needed.

You guys know that the insurance lobby is trying to get GPS units in their insured cars to track of the actual miles driven? 
 
They claim to lose money from people who under report their yearly mileage :pat:

[QUOTE=DriftGirl;143827]You guys know that the insurance lobby is trying to get GPS units in their insured cars to track of the actual miles driven? 
 
They claim to lose money from people who under report their yearly mileage :pat:[/QUOTE]

now THAT is whack!

that whole thing is wack. I'm seriously disappointed.

It's not the consumers' fault a bank gave them money for a car. They were out for a quick buck, too bad. There's no way in hell I'd allow someone to install a device that'll disable my car. Go to another lender if that's the case.


EDIT:
waaiiiiit is this an April Fools?

[QUOTE=Avantgarde;143961]that whole thing is wack. I'm seriously disappointed.

It's not the consumers' fault a bank gave them money for a car. They were out for a quick buck, too bad. [B]There's no way in hell I'd allow someone to install a device that'll disable my car[/B]. Go to another lender if that's the case.


EDIT:
waaiiiiit is this an April Fools?[/QUOTE]

Not your car, the dealership/bank's car.

[quote=DriftGirl;143827]You guys know that the insurance lobby is trying to get GPS units in their insured cars to track of the actual miles driven? 
 
They claim to lose money from people who under report their yearly mileage :pat:[/quote]
 
 
hahahaha they must be on some good super kryptonite crack cuz how can they lose money when the amount of claims entered a year versus the amount of active policies dictates that they are making more money than not regardless of miles driven or zip codes inhabited which is another sticking point with them hhahahahaha :pat:

I think they would be claiming to lose money on people who claim their car had less mileage on it to get a bigger payment.

Yes, firelizard is right. 

They make your premiums higher due to the amount of driving you do. You drive more, you are at risk more. Some insurance companies will ask you to verify your mileage when you renew your policy. 

Should they do it? They have every right to. Will they? Maybe. 

Installing a gps tracker also works in your favor. If your car is stolen, they'd be able to track it.

Insane !! damn can you imagine how many broke asses you'd see flooding the busses ?  and trains  ? and all the cars parked with flashing lights ? puhahahah


Or someone stealing it and paying the smaller debt just to drive ? lol

eh, theyre not GPS'ing any of my cars LoL!! Fuck that...if they wanna know, I'll bring the car to a drive thru station or they can have someone come look...or I'll simply tell them.
 So no, they dont have any 'rights' to your car. You are paying for a service.
 
until they start refunding money to people that dont get into accidents they can roll the dice like the rest of us. 
 
 
GPS tracking (like I have on a couple cars) is cooh to recover a car but im not having someone else install their shit in my car to track my every move. 
 
I get hit over the head for $400 every month by my insurance company. If it gets stolen...so what, thats why we pay insurance....

[QUOTE=DriftGirl;144244]I get hit over the head for $400 every month by my insurance company. If it gets stolen...so what, thats why we pay insurance....[/QUOTE]

holy crap! how many cars do you pay for??? or...how crappy is your record? :smiley-rofl:

i pay 300 for my ls my 4x4 and my gsxr

I saw this on the news last night! 
WHACK! It's a box that sits on the side under the steering wheel and you have to call the insurance compny to get the button combination to start the car!
 
The good thing is they would have to get it in your car some how! But I bet this would be another way to squeeze more money out of you! Like making the devices standard on your basic payment and then paying more to not have the feature....
:shrug:

Someone will find a generic code  to enter or something to allow them to fool the system and keep driving while not having to make a payment.  Sort of like Satilite dishes and illegal cable ;)

[QUOTE=DriftGirl;144244]
 So no, they dont have any 'rights' to your car. You are paying for a service.
 [/QUOTE]

Like I said, if you're leasing, or making payments, the bank or dealer owns the car, not you. They can GPS it all they want.

leased or renting..yeah. Buying..no 
 
Makes as much sense as a banker telling me they're coming over for dinner whenever they want because I gave them a mortgage :pat: