Miss a payment and your car may die

KFXO-TV ^ | 5/15/03

[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."

[general_re]

[Ron in Acreage]

Those who don't like the device can walk. Or go to another dealership that doesn't use the device. It's called freedom of choice. No one is forcing anybody to buy their cars. When the car is paid for, I assume the device is removed.

[E. Pluribus Unum]

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.

Stolen airbags are worth $1000. I bet one of these is worth even more.

[LaraCroft]

Agreed. It seems punishing to put the device on the car and still charge the higher rates meant to protect them against bad risks.

They should at least receive average to low rates since the risk is so much lower to the car dealer.

[KneelBeforeZod]

hmm, obviously there must be a way to "find" and contact the car.

if this article had a blurb about "the device is also useful for keeping track of a car's location at all times" I don't think most people would like this gizmo.

but maybe its just satellite and signal goes out under a wide swatch like a pager.

still are you SURE they aren't tracking you?

[Chancellor Palpatine]

Speaking of repo men, this story was kind of funny - on one hand, everybody hates a crooked cop. On the other, if you've met any repo guys, they're generally not a nice bunch of folks, and tend to deserve anything stupid which can happen to them. Enjoy!

A Louisville Metro Police detective was fired yesterday for abusing his authority when he handcuffed a man while the detective's vehicle was being repossessed.

The detective, Matthew Corder, had been accused twice before of using excessive force — once in the arrest of Adrian Reynolds. The arrest came under scrutiny because Reynolds later died of unrelated injuries after a struggle in the Jefferson County Jail with corrections officers.

link

[GirlShortstop]

Can I get a gadget that locks the dealer's repair shop doors in case my car isn't really fixed?

LOL.   Do you think the Warranty on this "gadget" will be covered under Fed requirements such as 7/70, or a simple, let 'em off easy 12 months unlimited mileage?!

[Reagan is King]

I think the "no cash, no dash" concept sounds pretty good.

I've got a friend that used to be in the used car business and he said he once sold the same car 5 times! People would buy it and they'd go repo it and put it back on the lot over and over. One lady even told him when she bought it she wasn't going to make another payment but he had her down payment so he wasn't worried about it. She hid the car for about 3 months in somebody else's garage but they finally found it and got it back. On these smaller lots the downpayment on the cars the credit risk people usually buy almost covers the wholesale cost of the car so the dealer is protected.

[Sir Francis Dashwood]

You don't have to be a programming hacker to defeat it. All it takes is a little knowledge of electronics and a few easily found parts (resistors, capacitors, inductors, wires, and maybe an integrated circuit or homemade transistor).

[GirlShortstop]

Those who don't like the device can walk. Or go to another dealership that doesn't use the device. It's called freedom of choice. No one is forcing anybody to buy their cars. When the car is paid for, I assume the device is removed.

Would you be speaking of the same "ease of removal" or "choice" as the people who *didn't* want a vehicle equipped with airbags?  I know firsthand how difficult, and in some cases impossible, to get an on/off switch put into an airbag equipped vehicle.

Give the automakers and the fed the room and they'll abuse it.

[freedumb2003]

>>No, the next stage is GPS for all newborn infants<<

LoJack for kids as a concept has been around a looong time. THAT one creeps me out. A synthisized "right" that many Americans (myself included) embrace is the unalienable right to get lost and to be left alone.

The technology in this thread is pretty good. It actually serves everyone if credit payments are made on time and the extra NVA expense of reposessions is avoided. It is also fair that the collateral for the loan is unavailable should the loan payment not be made.

Now if it moves to locks on homes, it would get interesting...

[JimRed]

"ONSTAR" PLUS!

[bimbo]

The minute they introduce a bill to raise their salaries …

Congress has already bypassed that one … they have “an independent commission” which raises their salary every time one of them farts.

[babaloo999]

I've heard a few stories about companies not "seeing" their big trucks because the driver parked next to a power line and a transformer.
That's just the GPS tracking, though.

[bimbo]

Anyway what is your solution for deadbeats?

Deadbeats would walk. This device only allows the dealership to “sell” cars to those deadbeats. Meanwhile law abiding, credit-worthy individuals, are force to give up a little more privacy and freedom.

[maxwell]

This is ridiculous. It's an insult to the person who's giving their business to the dealership.

Well I can see how this would be an attractive method for dealerships especially if they've gotten burned alot on deadbeat customers... The dealership wouldn't have to use it on everybody-- it wouldn't make much sense to apply it to folks who have a good credit record or who have been repeat customers for a number of years. It sounds as though it actually is a bit of a hassle for the dealership to implement.

[anniegetyourgun]

Who's talking about a 'measure'? I say we just install the device!

[Badray]

"10-20% default rate? Yikes!"

Actually, at what is known as "Buy Here - Pay Here" lots, the default rate, before devices like this, ran as high as one out of three. That's one of the reasons for the higher price of the car and the high interest rates. And even with the high prices and rates, most of the dealers could not afford to stay in the business. With this system in place, it makes it possible for 'credit criminals' (as they are called) to get a car at all.

[suijuris]

I don't know what I don't like about this, but I don't. It gives me a creepy feeling. What next? Insurance runs out then you home respirator shuts down?

Whats next will be the government fining you because the satelite monitoring your car found out you did 62 in a 55. Some time later the satelite disables your car because there is a smog alert and only people with last names that begin with C are allowed to drive on Wednesday, and your name begins with an F. A year later you wwake up to find your car has again been disabled because you were branded a domestic terrorist after you attended a rally criticizing some fascist politician.

Welcome to the New World Order.

[Badray]

The used car market is extremely competitive and there are more used cars sold every year than new. The rates will stay high though for this type of customer, because even if a particular customer finishes paying for their car and establishes credit to qualify for regular financing the next time, there will always be a new supply of customers who need this service.