Car Payment Or Else: Engine Shut Off Systems

[cobalt1999]

http://autos.aol.com/article/car-buying/car-finance-payment-shutoff/20090415001

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. Sales at one manufacturer, Littleton, Colo.-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.

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.



I can see lawsuits over this technology, what if someone is trying to leave a place at night and the car won't start? What if they get mugged/raped/etc because they were forced to walk?

[LakeSamish706]

1. Whats to stop an owner from disabling the device? n/t

[w4rma]

2. That would be the first thing I would do after buying the car.

I don't anything extraneous like that on my car.

[4lbs]

4. There may be a document the car "owner" must sign that states if they try to tamper with the device

then that causes a repossession of the vehicle to occur.

[Statistical]

14. Likely that is it.

Disable device = automatic repossession and fine.

I mean does anyone think you honestly would get away w/ disabling your power meter and then not having to pay power bill.

Yeah physically disabling the meter wouldn't be that hard (I assume).
I am sure somewhere in your contract w/ power company they cover that though.

[Oregone]

12. You know, its possible they literally couldn't

I drive a Saab. If I set my alarm on, the computer disconnects from the car. The car cannot start, under any conditions. If I lose the key, the only way to fix it is to purchase a new computer deal and have it installed at a dealership (but I would assume they can override it, but Ive read as much on the web).

Anyway, if they would do something like this, its possible. They could make a device that constantly communicates to check if a car is paid, and if not, it disconnects itself from the engine.

[LakeSamish706]

15. Yeah, after some thought they must have a way of preventing someone from...

tampering with it. It would make no sense to be able to disable it that easily.

[jamesbolton]

22. Actually they are pretty easy to disable...

I've done it three times with two different brands of devices for a car dealer that got tired of malfunctions while his usual mechanic was out of town. If the devices were complicated they'd cost too much and fail more often. To make them generic so they work on any car they can't really interface with the car's computer to do anything fancy like the OEM alarm systems do. Also, because the owner of the car has physical access in private to the device, you really can't win the game of making it impossible to remove. So you just don't play the game. You make something that will work for 90+% of the time for a reasonable effort and cost.

[Donnachaidh]

3. shut off the car so they can't get to work? What a DUMB device.

The dealerships will have MORE people sending cars back. Personally, I wouldn't BUY a car with that device in it. F*CK these people.

[AndyA]

5. I would never buy a car with such a device on it.

And I'll bet a lot of people feel this way. A lot of good it's going to do sitting on the dealer's lot. I can see a lot of room for lawsuits, too. What if they malfunction and kill the engine in the middle of an intersection, or on a rail road crossing? What if the car won't start during an emergency and someone dies? And as mentioned earlier, raped, murdered, etc.?

Seems like a really bad idea to me. If there's a doubt that someone can afford to pay for a car, don't sell it to them. You can get an OK car fairly cheap these days. It may not look great, but you can find them in good enough shape that they'll get you around town reliably.

[BattyDem]

6. "what if someone is trying to leave a place at night and the car won't start"

That was my first thought. What if the thing malfunctions? What if criminals figure out a way to activate it? :shrug:

[Statistical]

10. Good question? Maybe it has a GPS and shuts it off when car is "home"?

Or maybe they shut it off something like 4:30AM on a Tuesday figuring that most people are home by then?

[liberal N proud]

7. This is nothing new

Companies that prey on low income or those down on their luck use these devices. They sell a shitty care with payments that sound attractive until times get tougher and you can't make them.
The company clicks on the device, car will not start again and they come pick it up with a tow truck.

In Ohio, JD Byrider has used these devices for years.

[Uben]

8. Whatcha wanna bet............

....it also has a GPS locator built in as well?

[Echo In Light]

16. A given

[corruptmewithpower]

9. Operating Information for Passtime Payment Assurance Devices

http://www.calfinancial.ca/passtime.html

[Statistical]

20. Interesting stuff.

So it looks like
1) it has GPS
2) non payment will start 48 hour timer
3) you can check status of device and see how much time you have left until it locks.
4) you are given one emergency activation

"This device allows CAL Financial to disable the starter on your vehicle, which will prevent your vehicle from starting. It will NOT shut down the engine when the vehicle is running, nor will it disable any of the electronic features of your vehicle (power locks, windows, stereo, etc.) at any time. It also enables us to locate your vehicle at any time via Global Position Satellite technology."

So it won't shutoff when you are driving because device controls the starter motor only.
Wonder if you could push start it (manual transmission only).

Brought back memories of push starting my Ford Escort when the starter motor was dead.

[LakeSamish706]

23. Thanks for posting this, good information in this... n/t

[No More Bushbots]

11. I foresee a Federal Law outlawing these devices

[Statistical]

13. Why? What is the difference between this and cellphone?

Cellphone (and most utilities) shut off when you don't pay.

I mean they are a crappy idea and I wouldn't get a loan if they required it.

I would buy a junker instead. There are plenty of cars that run (sorta) for $300 - $500.

[greguganus]

18. Maybe because you don't drive a cell phone or your house? n/t

[Statistical]

19. Well that answered it.

I will write that down.

Drive -> cars
Not Drive -> cellphones & houses

[tammywammy]

17. I assume this is more for tote-the-note lots n/t

[ellacott]

21. Some rental agencies have devices that monitor the speed

They've charged renters a fee if they were speeding.

[classysassy]

24. Hello dealers

when you can't un load those over priced cars and trucks,I betcha those devices will disappear.