Filed under: Debt, Transportation
If you ever saw the show Repo Man: Stealing for a Living, you know that taking back a automobile from a deadbeat buyer can be a challenging — and expensive — ordeal.
Now finance companies who work with subprime car buyers are fighting back. The Sekurus Company offers lenders a “payment protection system.” If you’re behind on your payment, a small device installed in the car beeps. Make the payment and you enter a pin # and it stops beeping. If you don’t pay, Sekurus’ device will turn off the car’s engine!This is a great idea. First, I don’t think anyone at WalletPop would advise anyone with poor credit to take out a automobile loan that’s for more than enough to buy a total clunker — in which case they might not bother with the high-priced device.
But this product may help cut down on repo costs — the GPS system makes it easy for them to find you after they turn off your engine — which might, in turn, cut down on the interest rates lenders have to charge on vehicle loans.
But still: don’t take out a high-interest loan to buy a depreciating asset. Please, please, please.
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