If the American economy tanks, look for car loans to follow the same pattern as house loans, right into the dumpster. However, Sekurus Inc. may have a tool to help subprime car lenders such as AmeriCredit Corp. (NYSE:ACF) fight defaults, help the repo man reclaim the assets, and protect against car theft.
Sekurus' ON TIME system patches a legal wireless-controlled device into the car's electrical system. The consumer is given a wireless control that he must push before he can start the car, which sends a signal to Sekurus. The company verifies that financing is up to date before authorizing the car to start. The customer begins receiving a countdown three days before the vehicle is disabled.
The system also serves as a theft deterrent, since car thieves won't be able to start the car without the wireless remote.
The product is especially useful for sub-prime car loans, a $75 billion market. The company claims that, because lenders can depend on this system to increase pay rates and reclaim vehicles, it will result in more borderline drivers receiving financing that otherwise would not. ON TIME also can be used by new dealers who have problems with cars being stolen off their lots.
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Reader Comments (Page 1 of 5)
6-15-2007 @ 10:54PM
scott said...
If it made it can be bypassed!
6-16-2007 @ 2:40AM
Don said...
"1984" in 2007. Big Brother is watching you, so PAY UP
6-16-2007 @ 7:08AM
Bill said...
"They" started going after our drivers license for non driving offenses a few years ago. If this thing catches on there is no telling what the device might be patched into. Does up to date auto insurance come to mind? We could lock kids in the house until the homework is done. Not let them leave the table until they eat their spinach! The possibilities are limitless.
6-16-2007 @ 12:02PM
Trisha said...
I think this is a great idea. They should also make habitual drunk drivers install a similar device on their cars requiring a breath test before starting.
6-16-2007 @ 4:38PM
amy said...
you all suck..coming from a family that literaly lives paycheck to paycheck, how the heck would we get to work to pay the darn car payment? THINK ABOUT IT
6-16-2007 @ 8:02PM
Catherine said...
They do have devices for people with DUIs. I think the late payment car not starting idea sucks.There are uncontrollable things that happen that may make a payment late.
6-16-2007 @ 8:28PM
Scott Ross said...
Remember the sixties well it's time again for people to start dropping out of this society. Are you afraid of losing your material things well you already lost your soul and your freedom over material things not to mention your enviroment. Just drop out-the government will respond-it will have to-the people are the government last time I thought.
6-16-2007 @ 8:29PM
Scott Ross said...
Remember the sixties well it's time again for people to start dropping out of this society. Are you afraid of losing your material things well you already lost your soul and your freedom over material things not to mention your enviroment. Just drop out-the government will respond-it will have to-the people are the government last time I thought.
6-17-2007 @ 9:57AM
DAN said...
THIS COUNTRY WENT DOWN THE CRAPPER SO WHAT DO YOU REALLY THINK WHEN SOMETHING LIKE THIS HAPPENS. ITS SCREW YOU AND PROTECT THE FUCKING CREDITORS AT ALL COST
6-17-2007 @ 12:58PM
David Rosenberg said...
Is it a Fail safe system? Does it take into account the errors made, you paid but the system says no. Hackers step in, cancel the paid accounts, millions could be stranded. It's a BAD idea whose come.
6-17-2007 @ 12:42PM
RR said...
Some of you are overreacting. I doubt if you are 1 day late on your payment, that they will disable your car. They would probably use the same principal they do when they repo your car, where your payment is more than 30 or 60 days late.
In addition, this is not a bad idea if it makes otherwise deadbeats pay their loans more responsibly. What you people don't realize, is that everytime someone defaults on a loan, the rest of us that are paying our loans pay for the bad loans. You don't think the loan companies can just take the hit, do you ? No, they pass it along to their other customers, in the forms of higher interest rates, higher late payment fees, etc. I for one am sick of paying extra taxes, interest, insurance payments, etc., because of all of the deadbeats that don't pay their fair share.
6-17-2007 @ 2:31PM
Glenn Clark said...
Hey hey I like this--------if wife gets smart mouthed or says something I disagree with ------ click----- and she is strwaned in the rain at night--- would work wonders to put on ex wives cars--- can you imagine the glee this could cause ????
veryonery
6-17-2007 @ 6:52PM
blondenotabimbo said...
It states that the customer begins getting a countdown THREE DAYS BEFORE they disable it. That should give you enough time to get your late payment in or straighten out any circumstances that caused your payment not to be on time. They aren't going to just do it with NO WARNING people!!
You are reading it out of context. Personally I think everything is geared to watching us, losing our privacy 100 percent and being no better than a dog with a collar on. But it's people who have approved cellphone cameras, red light cameras, let the government record phone & cell calls, emais, mail whetever they can. So don't complain later.......
6-17-2007 @ 6:56PM
blondenotabimbo said...
For Glenn Parks post above: Did you know some husbands have already put a GPS tracking device on their wives' cars and other gadgets.
I'd warn your wife to do a thorough check of her car. LOL LOL
6-17-2007 @ 9:22PM
an onymo us said...
I have that device. It sucks. But they do give you extensions if something happens and you can't make the payment. The only scary thing is, the dealer where I got it closed and moved 150 miles away, so I have nowhere to go if it messes up.
6-18-2007 @ 9:27AM
Gene Pool said...
For you moaners and wailers who think you are getting crapped on, if people would live up to their commitments, there would be no need in such a device. If you think it's "unfair," why don't YOU loan the deadbeats your money? --Gene Pool
6-18-2007 @ 9:59AM
Gene Pool said...
Reply to Amy: 99% of those living paycheck to paycheck do it by choice, not by necessity. Discipline is the key...but discipline is a foreign concept to 99% and the reason they live paycheck to paycheck.
The first rule of holes: when you are in one, quit digging.
6-18-2007 @ 1:06PM
Charley said...
One more really bad idea. Greedy banks already have made late payments and overlimit payments punitive to the point it is their most profitable line. These are not business decisions they are punitive and business should not have the right of piling on uncontrolled punitive cost. There is a legal system to handle abuse.
6-18-2007 @ 1:47PM
Dawn said...
If this catches on, then next the mortgage companies will install a door lock similar, to the car lock thing. House payment late... no way to get into your house... I agree with both sides. If people paid there payments there would be NO need for this. But speaking from my own experience, things happen and you can not control them.. Not like most can get help with the government when they hit hard times... because your records show to much assets.. Don't get me started on the government and benefits...
6-18-2007 @ 4:47PM
Lisa said...
No car in the first place = no headaches when the (nonexistent) payment is late. I'll keep saying it and maybe some readers will figure it out: in most cases, you don't NEED a car. In most cases, you WANT a car, and that means you have to take responsibility for choosing to purchase and operate that car.
At the very least, it would be prudent to save up an extra monthly car payment prior to purchasing a car, thus allowing yourself the ability to pay the first day of the billing cycle (rather than the last), plenty of time to straighten out any mess-ups, and allowing yourself a little financial cushion for that one month where everything in your life goes wrong.