[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.

[Badray]

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

There is always the risk that the customer and the car will disappear altogether or will be trashed when it is found. Even with a new car and a good customer, there is that risk. That's why a 5 year car loan bears a higher interest rate than a 30 year home mortgage. (Where 0% or special low rate financing is offered, the vehicle manufacturer pays the financing branch the equivalent of the real rate - and not everyone qualifies for those special rates.)

[sharktrager]

The risk isn't really much lower. The same problems exist, and the car is still worth less than what is owed when you reposess it.

This simply changes late payers to prompt payers. It is unlikely to reduce the default rate.