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."

[Dane]

JMO, I think it is a sound idea. Helps people keep their obligations and build their credit records.

[goldstategop]

Agreed. And it should help keep the repo man away too.

[KeyWest]

It does enforce discipline, something you tend not to have if a credit risk.

If it becomes more universal look for the hackers to find a way to bypass it. So, as usual, it will hurt the law abiding and do nothing to the crook.

[Drango]

kool

[goldstategop]

Thieves will steal cars that are already paid for anyway and then they'll go after the ones for which there is a high demand.

[backlash]

This device really has possibilities. Campaigning politicians are prone to making lots of promises and statements they never intend to back after being elected. Install one of these killer chips in each one and if they fail to live up to their pledges.....

[GraniteStateConservative]

Paying for repo services and possibly a whole car if the car can't be repo'ed are costly for the dealers and the costs are passed on to us. This is a good idea.

[goldstategop]

Its patterned after the ignition lock device that keeps you from starting your car if you have alcohol on your breath.

[Dane]

Paying for repo services and possibly a whole car if the car can't be repo'ed are costly for the dealers and the costs are passed on to us.

Exactly, this cut costs for the dealer and ultimately the consumer.

[whereasandsoforth]

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?

[Archangelsk]

In a truly free society we wouldn't need devices like these. Sorry, I don't want large corporations monitoring me.

[anniegetyourgun]

I think there should be such a device in the chambers of Congress. The minute they introduce a bill to raise their salaries (directly or indirectly), the lights, a/c, and backup generators all go out.

[Eric in the Ozarks]

A chastity belt for honesty ?

[Archangelsk]

I know your comment was made in half-jest, but who exactly would enact such a measure? Yes, I know that the critters in Congress first and foremost look after themselves, but your question has more serious implications than a lot of folks are willing to admit.

Do we really want to go there?

[John Beresford Tipton]

Hope cardiologists don't get the idea and
apppend these to implantable pacemakers.

[Dane]

In a truly free society we wouldn't need devices like these. Sorry, I don't want large corporations monitoring me

A truly free society would be anarchy. Anyway what is your solution for deadbeats? If people paid their bills, car dealerships wouldn't have to go this route.

Oh I forgot to you car dealerships are evil cpaitalists, nevermind.

[Dane]

cpaitalists=capitalists

[DCPatriot]

Let's just use the skull bracelet too!

A head device fill with explosives that will detonate and blow your head off if you venture past a pre-set distance.

This way, we can eliminate our expensive prison system. It gives a whole new meaning to "house arrest".

< /sarcasm >

[banjo joe]

walking on foot

as opposed to knee-walkin'

[banjo joe]

yeah. 10-20% default rate? Yikes!