GPS shut downs the car for delinquent payments

[snopes]

Comment: A friend just told me that a man told her mother that he had sent
in a car payment 2 days late and a microchip in the car turned it off and
the car wouldn't restart until the payment was received.

[crazybob]

I saw a video about this product. A websearch turned up this system called On-Time:

http://www.eradllc.com/ASSETMANAGEME...8/Default.aspx

The video I saw said that once the car is disabled, a unique one-time code is generated that can be keyed in to the keypad to re-enable the car once payment is made. Also, the device is removed free of charge once the note is paid off.

[diddy]

Why would any company think this would be a good idea? I mean, if you need to make payments, don;t they do a credit check to make sure you can make them and if you don't they repossess the car?

It would be kind of silly to lock a car after just one day being late. Credit card companies and other bill collectors will notify you if you payment is delayed at least.

Originally Posted by diddy

Why would any company think this would be a good idea? I mean, if you need to make payments, don;t they do a credit check to make sure you can make them and if you don't they repossess the car?

It would be kind of silly to lock a car after just one day being late. Credit card companies and other bill collectors will notify you if you payment is delayed at least.

I agree that just a few days is a bit extreme but after a month or two would be a good idea.

Of course I can already see people complaning that the device is unfair when they get locked out of their car for not paying. And of course, everyone will support the deadbeat and not the big bad evil corporation that had the nerve to expect payment on a loan it made.

[Wild1_74]

Where I have seen this before is in the "Tote the Note" industry. Most of these people have poor credit and little or no down payment. I almost bought a car with this in it the last time I had to get a vehicle due to my poor credit score. The only reason I did not is because the dealer I was working with required a small down payment (which is what got me in the door), but wanted $1000.00 to install the device. He said that covered his expense on the unit, and it would lock the ignition if my payments were not on time.

Of course we argued the "if I had an extra $1000 to put into the vehicle, I would have other options." He offered to cut the payment into two payments, and add it to my monthly payment for the first 2 months. Again, if I could have afforded an extra $500.00 a month.....

I can understand the logic in these situations, but they need to find a way to put the device into the vehicle at little or no cost to the end user. I think it could be a benefit to both parties. It would allow people with poor credit to get a decent car, and the lender a guarantee that they could collect on the debt.

I would assume that it also would include some type of GPS monitor, so if payment still was not made, the vehicle could then be repossessed.

Wild1"Should of paid those bills"_74

[Eddylizard]

So what's to stop someone disconnecting the device? Presumably it's spliced into the ignition circuit somewhere along the line, and can be unspliced.

Or does it have 100g of semtex, and a red and blue wire?

Originally Posted by Eddylizard

So what's to stop someone disconnecting the device? Presumably it's spliced into the ignition circuit somewhere along the line, and can be unspliced.

Or does it have 100g of semtex, and a red and blue wire?

Your mission, should you choose to accept it....

[Beachlife!]

Originally Posted by Eddylizard

So what's to stop someone disconnecting the device? Presumably it's spliced into the ignition circuit somewhere along the line, and can be unspliced.

Or does it have 100g of semtex, and a red and blue wire?

I'm guessing that it is probably not that easy to disconnect. Maybe it connects directly into the computer. I would also guess that there is something in the contract which makes disconnecting a very bad thing.

[A Turtle Named Mack]

Originally Posted by Wild1_74

I can understand the logic in these situations, but they need to find a way to put the device into the vehicle at little or no cost to the end user. I think it could be a benefit to both parties. It would allow people with poor credit to get a decent car, and the lender a guarantee that they could collect on the debt.

I am not so sure that we are doing that many favors by helping people get into debt they cannot handle. The USA is having a problem right now which is affecting the world economy because too many lenders found ways to allow people with very poor credit to get up to their eyeballs in real estate debt. They were at the limit of their abilities to pay when things were perfect, so when things got just a little tighter - from rising prices, ARM rate raises, reduced hours on the job, etc. - the house of cards came falling down.

[Arriah]

See, I have the opposite problem. I pay my rent every month, even if that means putting off some other bill and I'd be much better off if I could put that money every month towards owning a house. I don't need or want a $500,000 house, I know that for my rent I can get about a $150,000 house and that's what I want. Unfortunately, mortgage companies look at the old bills that I'm paying off slowly and won't give me a loan.

It's sad that when lots of people are able to get into debt over their head, I can't even get in debt up to my ankles.

[snopes]

Originally Posted by diddy

Why would any company think this would be a good idea? I mean, if you need to make payments, don't they do a credit check to make sure you can make them and if you don't they repossess the car?

Hint: It's a lot easier to repossess a stationary automobile.

It would be kind of silly to lock a car after just one day being late.

Actually, it's kind of silly to default on a loan by not making your payments on time and expect no consequences.

- snopes

[A Turtle Named Mack]

Originally Posted by Arriah

See, I have the opposite problem. I pay my rent every month, even if that means putting off some other bill and I'd be much better off if I could put that money every month towards owning a house. I don't need or want a $500,000 house, I know that for my rent I can get about a $150,000 house and that's what I want. Unfortunately, mortgage companies look at the old bills that I'm paying off slowly and won't give me a loan.

It's sad that when lots of people are able to get into debt over their head, I can't even get in debt up to my ankles.

I was in something of that position (no 'bad' debts, just not much credit history) and little downpayment, some years ago. Townhouses had been overbuilt in metro Atlanta, and I found a decent deal with no money down on one in a decent location. The payments were less than rent, I was building equity, and when it came time to move to a house with kid-room, I was able to make townhouse a rental that has more than doubled in value. Check around for some distressed properties. Many are in good neighborhoods and the lenders mostly just need to keep the payments flowing and the current owners just want to avoid bankruptcy. Your bank or a cooperative real estate agent may be able to help.

[diddy]

Originally Posted by snopes

Hint: It's a lot easier to repossess a stationary automobile.

Yes, but repo companies have been able to get cars in the past too. It just seems like overkill to me when a repo company can just go to an address, find the car parked and grab it. But thats just me I guess. Lets hope the system doesn't malfunction in a bad place.

Actually, it's kind of silly to default on a loan by not making your payments on time and expect no consequences.

- snopes

If I understand what your saying, I agree. At least I think I understand.

[Lainie]

Originally Posted by snopes

Actually, it's kind of silly to default on a loan by not making your payments on time and expect no consequences.

Of course, but taking drastic measures the first time a lendee is 1 day late is also silly.

[Beachlife!]

Originally Posted by Lainie

Of course, but taking drastic measures the first time a lendee is 1 day late is also silly.

It's not as if they are repo-ing the car. They're just making it undrivable until the person pays.

The device gives a warning three days out, and then two days out and beeps with one day left before the payment is due. It doesn't seem like a repo tool so much as a tool to insent the car buyer to make thier payments on time.

[Wild1_74]

Originally Posted by A Turtle Named Mack

I am not so sure that we are doing that many favors by helping people get into debt they cannot handle. The USA is having a problem right now which is affecting the world economy because too many lenders found ways to allow people with very poor credit to get up to their eyeballs in real estate debt. They were at the limit of their abilities to pay when things were perfect, so when things got just a little tighter - from rising prices, ARM rate raises, reduced hours on the job, etc. - the house of cards came falling down.

people with bad credit have to drive to. If you can't afford it, I agree, don't do it. But if you are in the situation I am, what they tend to call money rich, credit poor, then do what you have to do.

[Beachlife!]

Originally Posted by Wild1_74

people with bad credit have to drive to. If you can't afford it, I agree, don't do it. But if you are in the situation I am, what they tend to call money rich, credit poor, then do what you have to do.

If you're money rich credit poor, why not pay cash?

[A Turtle Named Mack]

Originally Posted by Wild1_74

people with bad credit have to drive to. If you can't afford it, I agree, don't do it. But if you are in the situation I am, what they tend to call money rich, credit poor, then do what you have to do.

If you have the money - pay for the car outright. Or, if you want to build up credit by paying on time, put money on deposit to back up the loan. If there is a fund that the bank can get to and you can't which will cover the debt, they WILL loan you the money at a good rate. Then you build your credit by making the regular payments.

It can be worse on your credit rating to have no debts than to have a numebr of debts with occasional late payments. Creditors want to see that you are stable and responsible enough to make regular payments, and make good on it if you should have a mistake or otherwise fall behind. A person who pays cash for everything fails to demonstrate that s/he can keep up with obligations.

[Wild1_74]

Originally Posted by A Turtle Named Mack

If you have the money - pay for the car outright. Or, if you want to build up credit by paying on time, put money on deposit to back up the loan. If there is a fund that the bank can get to and you can't which will cover the debt, they WILL loan you the money at a good rate. Then you build your credit by making the regular payments.

It can be worse on your credit rating to have no debts than to have a numebr of debts with occasional late payments. Creditors want to see that you are stable and responsible enough to make regular payments, and make good on it if you should have a mistake or otherwise fall behind. A person who pays cash for everything fails to demonstrate that s/he can keep up with obligations.

And that is why I do not like the term, money RICH is misleading. My wife and I are far more financially secure then we have ever been...rich, not so much. We can afford all of our bills, and a car payment is not a burden, but I could not pay cash for one.

That’s all I meant.

[Beachlife!]

Then you 'income' not money.