Miss a Payment ? Car "shut Off"

[csv8]

With consumer credit ratings plummeting, more American car owners could soon be driving around with an electronic Big Brother on board.

Business is booming for makers of "shut-off" devices, which turn engines off when car payments are late.

It's no mystery why interest in the gadgets is soaring: the credit worthiness of American consumers is declining as they lose jobs in record numbers and find it harder to tap into home equity.

I suppose this will happen here ?

[shamuss01]

Its a good idea for x-wife!!!! takin the last car...lol

[Yellow_Festiva]

This could be a very unsafe depending on where the car is when it is immobilised.

Having said that. I hate deadbeats who don't know how to maintain payments for ANYTHING, especially debt.... At least you cannot argue with a piece of hardware, or give them sob stories as to why you cannot pay for something....

[DJM83]

Excessive much?

[GTpilot]

HAHA, Love it, In my case with a Novated Lease.
ME:(calling work) yeah boss, can't come to work today.
Boss: Whys that??
ME: cause YOU have not paid my car payment, So the car won't start.

[AUIIForte]

It wouldn't be dangerous, as I'm definitely sure it just wont let you start the car up again. It wouldn't switch off while you're driving, but just prevent you from starting the car up when its turned off.

[DJM83]

Originally Posted by jgb

HAHA, Love it, In my case with a Novated Lease.
ME:(calling work) yeah boss, can't come to work today.
Boss: Whys that??
ME: cause YOU have not paid my car payment, So the car won't start.

[Matt47569]

Originally Posted by AUIIForte

It wouldn't be dangerous, as I'm definitely sure it just wont let you start the car up again. It wouldn't switch off while you're driving, but just prevent you from starting the car up when its turned off.

solution = keep car running non stop and dont turn off

[DJM83]

Originally Posted by Matt47569

solution = keep car running non stop and dont turn off

I think the fuel may run out though just a guess :

[seXCmont]

lol what will happen if u try fueling up while engine is still runnin? guess you would end up spendin prob more money than payin the payments anyway

[flappist]

Jeez you come up with some silly "sky is falling" threads csv8.

It will NEVER happen in a country where you can sue for any and everything.

The first time a clerical mistake is made and the wrong car shut down or a car is disabled on the way to hospital (or in USA on the way to a pub or maccas) or in a bad area and the driver assulted the credit company and the gizmo make will be bankrupted.

[Sourbastard]

Originally Posted by Yellow_Festiva

This could be a very unsafe depending on where the car is when it is immobilised.

Having said that. I hate deadbeats who don't know how to maintain payments for ANYTHING, especially debt.... At least you cannot argue with a piece of hardware, or give them sob stories as to why you cannot pay for something....

yeah, those dead beats that get laid off by collapsing industries and cant get another job due to a financial crisis?

Those dead beats who have to choose between feeding their kids and family against paying a loan payment for a car they cant sell because the car market is dead and they owe more than the car is now worth?

Got anything else intelligent to add? or are you spent.

[ILLaViTaR]

Originally Posted by Yellow_Festiva

This could be a very unsafe depending on where the car is when it is immobilised.

Having said that. I hate deadbeats who don't know how to maintain payments for ANYTHING, especially debt.... At least you cannot argue with a piece of hardware, or give them sob stories as to why you cannot pay for something....

It's not as easy as just paying it, not everyone's lucky enough to have their own business.

Some who work full time even find it a struggle with every single thing inflating, with the exception of their wage. You might be the one who just gets by, then something happens such as a blown head gasket and you can't afford to make your payment for the next few weeks.

[Yellow_Festiva]

Reaching for the violin......

If someone borrows for a car or anything else, then they need to face the consequences... Life is tough isn't it, and only a fool doesn't plan as best they can for the worst case. If you find yourself broke and with nothing in the bank 2 weeks after losing a job that's not the fault of anyone else but yourself...

If you are working full time and 'just getting by'.. then you really need to re-assess your spending and saving ratio....

And if a blown head gasket is taking food off the table... geeze I don't know what to say?

Spent?... far from it.

[csv8]

Originally Posted by flappist

Jeez you come up with some silly "sky is falling" threads csv8.

It will NEVER happen in a country where you can sue for any and everything.

The first time a clerical mistake is made and the wrong car shut down or a car is disabled on the way to hospital (or in USA on the way to a pub or maccas) or in a bad area and the driver assulted the credit company and the gizmo make will be bankrupted.

I do try !! to be amusing !!! but I can give you the link to the website and several companies are developing such devices.

[csv8]

With consumer credit ratings plummeting, more American car owners could soon be driving around with an electronic Big Brother on board.
Shut-off devices give audio and flashing light warnings before the vehicle's power is cut.

Shut-off devices give audio and flashing light warnings before the vehicle's power is cut.

Business is booming for makers of shut-off devices, which turn engines off when car payments are late. Sales at one manufacturer, Littleton, Colorado-based Passtime, are up 33 percent over last year. CEO Stan Schwarz says the company is cranking up production to meet the demand.

"Right now, we are moving about 2,000 units a month into the marketplace," Schwarz says. "I fully expect by the end of the year we will be up to 14,000 to 15,000 a month,"

While the devices have mostly been used in the subprime auto loan market, other lenders are looking closely at the technology, manufacturers say. It's no mystery why interest in the gadgets soaring: the creditworthiness of American consumers is declining as they lose jobs in record numbers and find it harder to tap into home equity. AOL Autos: Best lease deals this month

Financially stretched consumers have to figure out what bills they are going to pay -- and what payments they have to postpone. And car dealers and lenders want to make sure it's not loan payments that fall to the bottom of the pile. AOL Autos: How to buy a car without negotiating

Consumers could increasingly find themselves in cars with shut-off devices if their credit turns bad and they are forced to shop at dealerships serving the subprime market. These sellers range from small mom-and-pop, "Buy Here, Finance Here" outlets to major dealerships. AOL Autos: Which dealerships treat you best )
Don't Miss

According to Schwarz, industry statistics show that 300,000 consumers a month are falling from "A" to "B" credit -- meaning that they have recently been late with a house payment and had other credit problems. Others have fallen lower, becoming candidates for subprime car loans for the first time in their lives. AOL Autos: Inexpensive family cars

It's not an especially nice place to be. Buyers usually end up paying more than they would pay for a late model used car or a new car lease if their credit were good. Since the risks are higher, dealers and finance companies feel they have to hedge their bets by boosting interest rates to 27 percent or more. AOL Autos: Best used cars under $20K

The devices, which are required by a growing number of subprime loan contracts, are the product of a revolution in telematics -- the blending of telecommunications and wireless technology.

The devices are usually controlled remotely by the dealer or lender and are linked to the vehicle's powertrain. They usually cut out the power several days after the payment is due. Before the deadline, the driver is treated to a concert of tones and flashing indicators signaling that the deadline is approaching. There are also warnings after the deadline has passed.

Their proponents call the devices a win-win for consumers and finance companies. They make it possible for dealers to sell cars to people who would have a hard time getting a loan otherwise. The buyers end up paying a somewhat lower interest rate because the risk to the lender is less.

The products also include global positioning, or GPS, to speed up the repossession of the vehicle, if necessary.

Not all the uses of the technology are related to subprime lending: Schwarz said his devices also double as anti-theft measures, making it possible for the consumer to track a stolen vehicle on his own on a computer.

General Motors has introduced a feature using similar technology that enables law enforcement to track a fleeing car and slow it gradually slow it to idling speed when the situation warrants.

The devices used in the subprime market have spawned lively debates about their value and appropriateness, along with Internet chatter about how to disable them -- a move sure to send the repo teams into action. There have been a few lawsuits and scattered complaints about devices shutting down the engine while the owner is driving. Manufacturers attribute the incidents to mechanical problems unrelated to the devices.

Numerous safeguards are built-in, the manufacturers say. The devices won't shut down the engine while the vehicle is moving, and consumers can extend the car's operation in an emergency. Contracts spell out that the device is present on the vehicle.

"We have customers sign a disclosure before they get into the car, saying the unit is on the car and how it is going to function," Schwarz said. "The disclosure form is four or five pages long, and the customer checks off every box.

"If the dealer won't disclose the unit is on the car, then we won't do business with that dealer or his lender or finance company," he said. But the entire system may break apart if dealer doesn't sell a good vehicle, he added. Some customers simply won't make the payments if a vehicle doesn't run reasonably well.

One device, called the On Time, is produced by Murrieta, California-based Sekurus, Inc. CEO Don Lavoie says he joined the company because it was on the verge of going mainstream. He compares the concept to payment plans for cell phones -- people pay on time because they don't want to see their service cut off.

The device basically leads customers to push car payments up their bill-paying hierarchy. "Families across the country, regardless of their financial condition, move the bill to the top of the queue for payment if they need that phone for its basic utility, such as arranging to pick up the kids from soccer or school.

"There are 300 million active cell phone users in the United States, and those people are paying their cell phone bill on time," he said. "And the reason is they can't use the phone if they don't pay for it."

As the economy deteriorates, the shut-off devices seem to be coming into their own. "We have several credit unions that won't finance a car without it," Lavoie says. "They are financing high-quality used cars to non-prime buyers" -- a category that includes both subprime and some other financially challenged segments. A typical member of this group might be described as someone with less-than-stellar credit.

The potential for the market is huge. "There are 40 million used cars sold a year, and 20 million are considered non-prime," said Lavoie.

Schwarz at PassTime is sees similar potential for his products. "Right now we are even talking to national lenders who have "A" credit customers. They would leave the device in the inactive mode unless the customer defaults."

The flexibility of the PassTime devices could accelerate their progress into the mainstream, he says. They can be reset for new payment schedules if owners run into a problem, giving them extensions of a few days at a time if the buyer can only afford to make partial payments. In the meantime, the borrower and lender could conceivably work out a new payment plan.

In one more example of how cars are developing minds of their own, GM recently introduced its "Stolen Vehicle Slowdown," as an option on a number of models, including the Cadillac Escalade and the Chevrolet Silverado. The automaker is in the process of making it available on all its model lines.

If the vehicle is stolen, customers call OnStar, and its staff locates the vehicle using a GPS device and then gives police the location, says James Kobus, a communications manager at the company.

"If the police start closing in, and they notify us that the conditions are right, we can slow that vehicle down." A light on the instrument panel signals "Engine Power Is Reduced" and the car idles down to about three miles per hour.

[johnny351]

they would have shut my car off ages ago but im a dead beat so it cool

[flappist]

Originally Posted by csv8

I do try !! to be amusing !!! but I can give you the link to the website and several companies are developing such devices.

There are also websites for companies developing flying cars, underwater cars, driverless cars, cars that run on pig poo and lots of other wacky things......

[XR6Runner]

Originally Posted by flappist

There are also websites for companies developing flying cars, underwater cars, driverless cars, cars that run on pig poo and lots of other wacky things......

I've actually seen documentaries where they have built flying, underwater and driverless cars. But not pig poo! I've seen them use cooking oil to drive the cars too. But nothing that will be going on the production line too soon.

[Sourbastard]

Originally Posted by Yellow_Festiva

Reaching for the violin......

More likely reaching for something else I think

If someone borrows for a car or anything else, then they need to face the consequences... Life is tough isn't it, and only a fool doesn't plan as best they can for the worst case. If you find yourself broke and with nothing in the bank 2 weeks after losing a job that's not the fault of anyone else but yourself...

Life is tough indeed, but it is not a game nor an experiment. And anyone who has ever planned anything knows that rarely do perfect plans execute perfectly in an imperfect world.

Its taken my wife 7 months to find a job after we had our baby because the job market is so poor. Where did you pull this 2 weeks BS from?

If you are working full time and 'just getting by'.. then you really need to re-assess your spending and saving ratio....

And for the people who invested in the stock market before the crash and lost thousands to millions? For the people in the US who's banks folded and lost all their savings? For people whos Superannuation was decimated overnight? Who here plans for armaggeddon?

And if a blown head gasket is taking food off the table... geeze I don't know what to say?

Spent?... far from it.

Well arent we precious.

[RG]

Originally Posted by Yellow_Festiva

Reaching for the violin......

If someone borrows for a car or anything else, then they need to face the consequences... Life is tough isn't it, and only a fool doesn't plan as best they can for the worst case. If you find yourself broke and with nothing in the bank 2 weeks after losing a job that's not the fault of anyone else but yourself...

If you are working full time and 'just getting by'.. then you really need to re-assess your spending and saving ratio....

And if a blown head gasket is taking food off the table... geeze I don't know what to say?

Spent?... far from it.

Spoken like a person who has had a silver spoon all their life and doesn't understand the meaning of "doing it tough". Not everyone has the ability, skills or capacity to re-assess their saving-spending ratio. For some their full time income just covers their necessary expenditures. Is this their fault? Does this make them "bad people" or "irresponsible"? No it doesn't, some are a victim of circumstance and for some who have come from a life of nothing, living below the poverty line "just making it" is a win for them.

I'd advise you to have a rethink on your position as I personally find it quite offensive. If you don't know, which no matter what your rebuttal is you don't, then I think you should just keep your mouth shut. What you have said here makes me realise that there are still quite a few clueless people out there.

[Joshvee]

hehe and here I thought my day was gonna be boring.

[imugli]

As someone who has collected on car loans, all I can say is IT'S ABOUT TIME!

[NAK302]

wow, it's easy to offend people nowadays. opinion? what was that again? something you're not allowed to have on FF, or so it seems.

i'm hearing ya yellow festiva, we have the same opinion.

[RG]

Originally Posted by GT-0733

wow, it's easy to offend people nowadays. opinion? what was that again? something you're not allowed to have on FF, or so it seems.

i'm hearing ya yellow festiva, we have the same opinion.

Having an opinion is fine, making a statement that is offensive is not. Read the T&C.

[DJM83]

Wow this thread has turned pear shaped

[RG]

Originally Posted by DJM83

Wow this thread has turned pear shaped

True, time for it to go back on topic or it will be closed.

Personally I can't see this technology ever being brought here, too many civil libertarians for that, nor do I think should it be. There are already measures in place for the repossession of goods if loan repayments are not met. It could also have the unwanted effect of causing repossession if this is introduced as part of a "step" warning program i.e.

• Step 1 phone call/letter
• Step 2 vehicle lock down
• Step 3 repossession

If someone isn't able to get to work due to the lock down it could cause repossession and that isn't good for either party involved.
I can also see a few legal ramifications if it is introduced.

[NAK302]

Originally Posted by RG

Having an opinion is fine, making a statement that is offensive is not. Read the T&C.

i guess calling someone "born with a silver spoon in their mouth" and being told to "shut up" may fall into the offensive category as well. moderators must be an exception around here, huh? re-read your post, jump back down off your pedestal and you'll see where i'm coming from.

for the record i found nothing that yellow festiva wrote offensive, once again it comes down to opinion.

BOT, this technology WILL come into play eventually. once the legal ramifications are ironed out to the point where the credit supplier is deemed not at fault, it'll become part of the deal. i don't believe it will be just 1 missed payment it will be for the "skippers" ie, the folks who run out on the financiers. people don't matter to credit suppliers in this greedy, cruel world.

[RG]

Originally Posted by GT-0733

i guess calling someone "born with a silver spoon in their mouth" and being told to "shut up" may fall into the offensive category as well. moderators must be an exception around here, huh? re-read your post, jump back down off your pedestal and you'll see where i'm coming from.

for the record i found nothing that yellow festiva wrote offensive, once again it comes down to opinion.

BOT, this technology WILL come into play eventually. once the legal ramifications are ironed out to the point where the credit supplier is deemed not at fault, it'll become part of the deal. i don't believe it will be just 1 missed payment it will be for the "skippers" ie, the folks who run out on the financiers. people don't matter to credit suppliers in this greedy, cruel world.

1. There is a difference, you want to go out and make a statement like that be prepared to cop it. It was offensive to a large proportion of the population who do do it tough. If you've never known what it is like then I am happy for you, truly I am.

BOT part, I can see your point but I think that it will be a pointless exercise in that case. If that technology comes into play then other technology to get around it will too. If you are prepared to "do the runner" then I am pretty sure you would be prepared to find a go around for the locking device too.

[DJM83]

I can feel a lock coming.

But i do agree with you Russ my family never did it easy i worked for everything i had and was giving nothing. As did my parents aswell, silver spoon boy here, me thinks not.

On topic i cant ever see this being introduced here as the negatives would far out weigh the positives IMHO. and the legal ramifications if someone were to be injured during the 'process' would be huge if it all went wrong. One of those 'only in America' me thinks