Miss a Payment? Good Luck Moving That Car

CommanderFrank

CommanderFrank

Cat Can't Scratch It
Joined
May 9, 2000
Messages
75,399
Big Brother is not only watching you, he is now riding shotgun in your new car thanks to some very intrusive technology. Subprime borrowers, those who buy new cars but lack a perfect credit rating, in many cases have to agree to the installation of a remotely controlled starter interrupter device prior to leaving the showroom. Ain’t technology grand. :D

The devices, which have been installed in about two million vehicles, are helping feed the subprime boom by enabling more high-risk borrowers to get loans.
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Can't really feel sorry for the woman in the story. If you can't afford the payment, then you don't need the car.
 
3 days late? if that's true it needs to be a lot longer like 30 days. and putting gps and remotely controlled kill switches on cars you buy screw that.
 
Wouldn't just... Oh I dunno... NOT APPROVING the credit to buy a car instead be safer still?

Idiotic use of big brother technology.
 
I don't like this technology on general principle. I have no issue with deadbeats having not-their-cars disabled (though three days does seem a tad on the unforgiving side).
 
I loan you money, especially without a downpayment, you betcher ass I'll want a kill switch. And comprehensive insurance.
 
Hacked to override or corruptly disable in 3... 2...
 
I love how if you can't afford a new car you are a "deadbeat", or something to that effect. Like new cars are just casual to own. Most people don't have that kind of money! How about we address the huge problems with cars right now, like how hardly anyone can own one unless you are old? Young people have a hard time owning used, crap cars. Why don't we just make it even more difficult? Everyone loves riding the bus, right?

Ugh, the car business is so evil and fucked. God forbid we make cars affordable for most people.
 
I may agree to let you install it but that doesn't mean I won't disable it.
 
I thought Big Brother was government.. This is private sector business.. I call it Greedy Cousin. :p
 
Mel Farr the old Lions wide receiver used to have this on the used cars he sold. They had some real issues with it including it shutting off while driving and cars not starting even when payments were made.
 
Depends the first time I heard of these a local dealer was doing it. He basically said if he didn't do it, he wouldn't give financing to the person.

So the choice is no sale or sale with kill switch. Don't know if that is how its being applied here.
 
3 days late is garbage, I can understand 30 days or more. I mean late payments don't show on your credit report til its 30 days or more late.

Hopefully I'm never in a situation where thats my only option for a vehicle.
 
jpm100 said:
Depends the first time I heard of these a local dealer was doing it. He basically said if he didn't do it, he wouldn't give financing to the person.

So the choice is no sale or sale with kill switch. Don't know if that is how its being applied here.
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The article is vague, most likely on purpose to drum up viewer ship and my guess is the three days thing is also purposely misplaced or lied about.

These aren't new and I don't have a problem with them. They let people who wouldn't be able to get a car actual walk out the door with one.

As for affordable vehicles, there are plenty of affordable, used vehicles. With absolute trash credit my wife got her slightly used vehicle for $180 month.
 
MisterHipster said:
I love how if you can't afford a new car you are a "deadbeat", or something to that effect. Like new cars are just casual to own. Most people don't have that kind of money! How about we address the huge problems with cars right now, like how hardly anyone can own one unless you are old? Young people have a hard time owning used, crap cars. Why don't we just make it even more difficult? Everyone loves riding the bus, right?

Ugh, the car business is so evil and fucked. God forbid we make cars affordable for most people.
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Do you realize how much government regulations add to the price of a car?
The multiple air-bags, the mileage requirements, environmental regulation during manufacturing, Taxes, subsidies for electric cars, etc.

Add in the effect of the cash for clunkers program that removed a lot of good used cars from the road, and of course prices are going to be higher.

Of course some of these same people who can't afford a car have no problem affording a new iPhone, $250 sneakers, and smoking a couple packs a day.
 
qbanb8582 said:
3 days late is garbage, I can understand 30 days or more. I mean late payments don't show on your credit report til its 30 days or more late.

Hopefully I'm never in a situation where thats my only option for a vehicle.
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This is the only part I agree with.
Just like in most states they can't reposes a car until you are at least 30 days behind, the same rules should apply to shutting the car off. They should be required to give a warning a few days before (at least a voice mail message) and the car should not be shut off unless it is parked near the home or office.
 
New heights (or depths) of stupidity imo. Respond to a person getting behind in their car payment by cutting off their ability to get to work and make the money to pay for the car?
 
I've never owned or leased a 'new' car, and until the day I start wiping my ass with $100's I don't think I ever will. I've driven a few beaters, but most of my cars have been nice, and lasted well. Just saved up and paid cash. Cash always gets you a lower price. :)

Credit is a bitch, can't say mine is wonderful so this could be a pretty good idea if you were really in between a rock and a hard place. However, if I was in that situation, I sure as hell wouldn't want a 'new' car and have to pay on the damn thing for 36-48 months!!
 
I'm a director of accounting and finance for a mid sized financial institution and this enraged me. This is nothing more than hedging on predatory lending. Any FI that can justify this should be ashamed of themselves. After more than a decade in the industry you realize people as a whole are horrible with their finances. Thsee people need to be put in the right loan with the proper loan to value/downpayment and affordable payments. I'm sure it's banks and not credit unions.
 
MisterHipster said:
I love how if you can't afford a new car you are a "deadbeat", or something to that effect. Like new cars are just casual to own. Most people don't have that kind of money! How about we address the huge problems with cars right now, like how hardly anyone can own one unless you are old? Young people have a hard time owning used, crap cars. Why don't we just make it even more difficult? Everyone loves riding the bus, right?

Ugh, the car business is so evil and fucked. God forbid we make cars affordable for most people.
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Your name is quite appropriate for your response

There is a reason "these" people have crappy credit, it's a proven fact they (generally) don't pay the loans back, or are always late doing it. Either way, would you just want to hand over a 20/30K car over to someone like that and HOPE you see it again?


Problem is for many of the poor or just supremely stupid people, they only have their hearts set on a new car that costs 35-50K. And then when they default they wonder how it could have happened to them.

You can get a brand new car for 12-13K (kia, nissan) something super economical. When my life wasn't optimal financially and I needed new wheels, I bought a 2012 Kia Rio out the door for 13K (with taxes and everything)

The used car game... seriously anyone can get in and anyone can play. "Kids" have no problem affording 700 dollar cell phones it seems... if you can do that you can afford a beater (and fix it up over time) Don't know anything about cars? Then learn. Don't have a computer to learn? Go to to the library.

There is always a way to accomplish what you want out of life... the majority of people are too lazy or too stupid to take control over their destiny. My "first car" was a piece of shit... and yours should be too. Because really, what are you going to learn by driving some pimped out old model Escalade with the ignition GPS disable thing when you are 3 days late on your 600 dollar a month car payment.
 
collegeboy69us said:
Your name is quite appropriate for your response

There is a reason "these" people have crappy credit, it's a proven fact they (generally) don't pay the loans back, or are always late doing it. Either way, would you just want to hand over a 20/30K car over to someone like that and HOPE you see it again?


Problem is for many of the poor or just supremely stupid people, they only have their hearts set on a new car that costs 35-50K. And then when they default they wonder how it could have happened to them.

You can get a brand new car for 12-13K (kia, nissan) something super economical. When my life wasn't optimal financially and I needed new wheels, I bought a 2012 Kia Rio out the door for 13K (with taxes and everything)

The used car game... seriously anyone can get in and anyone can play. "Kids" have no problem affording 700 dollar cell phones it seems... if you can do that you can afford a beater (and fix it up over time) Don't know anything about cars? Then learn. Don't have a computer to learn? Go to to the library.

There is always a way to accomplish what you want out of life... the majority of people are too lazy or too stupid to take control over their destiny. My "first car" was a piece of shit... and yours should be too. Because really, what are you going to learn by driving some pimped out old model Escalade with the ignition GPS disable thing when you are 3 days late on your 600 dollar a month car payment.
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Judgmental much? I hope you never face job loss, divorce or major negative event because bad things do happen to good people you know.
 
Yakk said:
Wouldn't just... Oh I dunno... NOT APPROVING the credit to buy a car instead be safer still?
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Sure it would, it also wouldn't make any money.

Idiotic use of big brother technology.
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Having the ability to disable the car increases the chances people will pay up. That reduces the risk for the lender which increases the chance that the sums will work out.

There are plenty of people who can afford to pay their debts but would rather spend the money on going out clubbing with their mates or whatever.
 
haste. said:
I'm a director of accounting and finance for a mid sized financial institution and this enraged me. This is nothing more than hedging on predatory lending. Any FI that can justify this should be ashamed of themselves. After more than a decade in the industry you realize people as a whole are horrible with their finances. Thsee people need to be put in the right loan with the proper loan to value/downpayment and affordable payments. I'm sure it's banks and not credit unions.
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“I have disabled a car while I was shopping at Walmart,” said Lionel M. Vead Jr., the head of collections at First Castle Federal Credit Union in Covington, La. Roughly 30 percent of customers with an auto loan at the credit union have starter interrupt devices.
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30% subprime's? Predatory indeed. And you know the price of this GPS shackle is built into the loan amount as well, it's not the lending establishment covering the cost, it's their poor customers.
This is about half a rung up the ladder from payday loan establishments charging 15% interest per week + fees.
 
Of course, when this is the kind of genius they're trying to lend money to, it's tough to blame them for wanting some GPS tracking
Even though the device made her squeamish, Michelle Fahy of Jacksonville, Fla., agreed to have one installed in her 2001 Dodge Ram because she needed the pickup truck for her job delivering pizza.
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So, she has a job delivering pizza...but no vehicle? Winning.
She gets to choose any vehicle (since she doesn't already have one apparently) and chose a Dodge Ram full size pickup...for delivering pizza? Bet it gets great mileage.

Really though, it should've been a flat "No" when she said she was a vehicleless delivery driver, aka unemployed.
 
fdiaz78 said:
Judgmental much? I hope you never face job loss, divorce or major negative event because bad things do happen to good people you know.
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Then WILLINGLY let go of that car you're making payments on and grab some beater to do in the meantime.
 
Also the the thugs at the supprime auto places who put these things in look to have the tech saavyness of neanderthals, so they don't look hard at all to remove or disable.
 
Well this just sucks, new cars are too damn expensive in the first place anyway. Piece of shit cars and trucks going for $35,000 now is ridiculous. Nothing really special about cars these days since 1995 it seems.
 
Guys, it's simple. There's two legit sides to this:

Side 1:
This tech is kind of Orwellian, so even if it's not that big a deal being used here, this is a really bad precedent that could creep into other areas. Also this could legitimately screw people further who may just be late on a payment or have a temporary unfortunate circumstance, because we really need more methods to beat up people already down on their luck. Furthermore, if this was such an issue to begin with, maybe the lender shouldn't have made the damn loan. I mean geez, it's not like we ever had a financial disaster from making tons of bad loans before...

Side 2:
We are talking about NEW cars made to people without a good credit rating. It's harder to have sympathy for people buying cars NEW that can't afford them. People getting brainwashed by car culture to the point of making reckless financial decisions isn't exactly a good thing to begin with, the more that can get shut down the better.
 
fdiaz78 said:
Judgmental much? I hope you never face job loss, divorce or major negative event because bad things do happen to good people you know.
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I've seen a lot of people try to purchase things because they can currently pay for the loans, but then never stop to think about whether or not bad things might happen and live accordingly. Seriously, the working classes shouldn't even be allowed to purchase a new car at all or own property. They need to work for and respect their betters like they did a few hundred years ago when society was all like, not messed up or made of dumb cell phone owners.
 
CreepyUncleGoogle said:
Seriously, the working classes shouldn't even be allowed to purchase a new car at all or own property. They need to work for and respect their betters like they did a few hundred years ago when society was all like, not messed up or made of dumb cell phone owners.
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Nice! I think this is probably the most classist statement I've read on hardocp so far! I take it you're a follower of social Darwinism?
 
plugwash said:
Having the ability to disable the car increases the chances people will pay up. That reduces the risk for the lender which increases the chance that the sums will work out.
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If the "owner" (user) of that car really gets mad and sets it on fire... Yep totally safe for the lender. ;)

And even if they repo the car say 6 months down the road for non payment it's likely upside down by $3000-$5000 if not more so the lender still loses.

Solution? As said by Yakk. Don't approve the loan unless it's like a $5000 car. They don't need a $20,000+ brand new car.
 
tetris42 said:
Nice! I think this is probably the most classist statement I've read on hardocp so far! I take it you're a follower of social Darwinism?
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Thanks! :) I'm glad I'm not the only one who wants to give people the stuff they need like structures and more defined class roles in society. Its good for them because they really would have (acutally they do all the time -- look at all the working class domestic problems, crime, debt, and other junk) better lives if they lived in a way that was more...I dunno...fitting of their abilities.
 
LOCO LAPTOP said:
If the "owner" (user) of that car really gets mad and sets it on fire... Yep totally safe for the lender. ;)

And even if they repo the car say 6 months down the road for non payment it's likely upside down by $3000-$5000 if not more so the lender still loses.

Solution? As said by Yakk. Don't approve the loan unless it's like a $5000 car. They don't need a $20,000+ brand new car.
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funny thing
a friend was trying to get a 'new' used car.... with trade in with the clunker they have + some cash the car they wanted would need a loan for ~4k
the dealer and the bank wouldnt approve the loan ! why? TO SMALL and the car had to many miles on it...
but they would LOVE to give them a 14k or more loan at 9%..... WTF for NEW car but not for any of the used ones on the lot...
the payments on that loan would of been to high

so yea unless you have ALL the money up front or go to some sleazy buy here pay here lot with god knows what wrong with the cars your not getting that loan
 
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