Posted on 05/24/2003 4:26:04 AM PDT by Dane
Miss a payment and your car may die
Imagine getting in your car and it won't start. The situation would be aggravating for most, but for hundreds of thousands of Americans it could simply mean their car payment is overdue. A growing number of car dealers are using starter stoppers technology to ensure you don't get lax on your loan.
Macy Pearson loves the used car she just bought, but it will only start if she's made her car payment. Nestled under her dash is a device called a starter interrupt system. If Macy doesn't pay, the device is set to disable her car so she can't drive.
Macy's salesman insisted she have it, since she has no credit history. Once Macy sends in her payment, she's given a code number to input into a remote that connects to a device underneath the dash. "I stick it right in here. You punch in your code, you hear another little chirp and you're done," explains Macy, as she easily connects the device that will allow her car to run for another week.
Mike Simon's company, Payment Protection Systems, made the device in Macy's car and some 60,000 others bought at corner used car lots and dealerships alike. He says the device protects dealers from credit risks. "The people know that they have to make their payment and they really do perform in making their payments on time," says Simon. "Our delinquency rate was probably up around ten to twenty percent without the device. And since then, it's dropped down below two percent," says car dealer Steve Matthews about using the device with costumers.
It may be good for dealers, but what about drivers. Not everyone's sold on the idea of no cash no dash. Jack Gillis of the Consumer Federation of America has written a book about buying a car. He says the devices could put customers at risk. "You might be in a situation where you are in an unsafe position, and you need to get out of there quickly, and you can't do it," says Gillis about the pitfalls of such a device.
But device makers say cars won't stop while in motion they just won't start once they're turned off. Even then, drivers like Macy can call their salesmen for an emergency code that is good for 24 hours. Dealers also insist everyone is told about the service before they buy, and device makers like Stan Schwarz says drivers are warned before the "kill."
Manufacturers say the technology can make the difference between getting a car and walking on foot for many. But critics say customers don’t always leave the car lot with a better price, or better financing if they have the device. It turns out cars may not be the only things fitted with those kill chips. Look for them to turn up in computers, air conditioners, and yes, even TV's.
Macy's no critic, she's grateful for the opportunity to buy a car and working hard to get a solid credit history started. To her, that device under her dash is a dose of discipline. "It really helps because it makes you pay on time."
It isn't arbitrary if the denial is due to the debtor's nonpayment of his just obligations. It is wholly reasonable and entirely just. Anything else is irresponsible freeloading--something libertararians supposedly disdain.
The solution is simple. Just don't buy on credit. Save up and pay the full sum in cash. You have a choice. You always have a choice.
If you buy carefully, you don't have to keep the car 6 - 6 years. I have a friend who buys a 3 year old car every year and sells it one year to eighteen months later. He has never sold a car for more than $500 less than he paid for it and has sold some at a profit.
You sound like someone who has never had to struggle. Someone whose parents made sure that you would ultimately not have to ever hit zero. If not, then you may be stronger than most.
If not, tell us about your struggle. Why don't you ever elucidate with examples from your life?
Normally libertarians are something I disdain.
If the creditor is notified of impending interruption of service that would be one matter but the article alluded to a surprise shut off.
The creditor may believe that he made the payment or using withholding of payment for a legal purpose.
I wouldn't like to put my trust in minimum wage geeks at the loan company.
The "device" could be thwarted in a matter of minutes and it's a major hassle.
I don't see it becoming very popular. Especially with banks extending credit to everything that walks, crawls or slithers.
As a matter of fact, I do like that idea...imagine convicted child molesters, stalker restrictions, even prisons without walls, for that matter...
It might sound sadistic, but if you are convicted beyond benefit of the doubt, imagine the savings we can make, in regards to control the ever so increasingly prison population.
It looks like, the movie industry has a better grasp of future reality than your average law maker.
Imagine the scennario...you were told not to cross the line, you did it anyways and boom, one cockroach is gone. Further more, do give me the liberals mantra, of a cruel and unusual punisment, because it is time, we stop coddling the criminals and start deliver justice to the victims, as it should be.
You commited a crime, knowingly is against the law,...guess what, you are going to pay the price, and if you are convicted, in my oppinion the harsher and swifter the punishment,(of course after the absolute conviction beyond any benefit of the doubt in the court of law), the less crime we will see, because of the so called "nasty" procedure.(exploding collar device).
ooop's
Then don't buy at that dealership. You whiners believe everyone owes you something.
On the contrary. People will buy there if it makes sense for them to. If they know their car will not start if they default on their payments, they are more likely to exercise discipline and make payments as agreed. They might have to spend less on weed, booze, or impulsive budget-busting purchases like big screen TVs, but in the long run by being made to feel the immediate consequences of irresponsibility, they may learn--for the first time in their lives--that exercising self-discipline and setting priorities are valuable habits to develop.
As for the person who experiences an unfortunate reversal in life--job layoff, unexpected medical bills etc--there is almost always a way to keep a creditor from imposing a severe sanction. It starts with contacting the creditor amd trying to work some temporary relief. Most creditors appreciate such contract and will try to accomodate a request for short-term forebearance or help. Then there is the extended family that ought to stand ready to help out a family member in trouble.
Instead, everyone wants a government bailout or to stiff the creditor and let taxpayers and other borrowers absorb the loss.
Libertarians are so predictable: "What mine is mine, and what's yours is mine, 'coz I might really, really need it more than you do."
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