Snippets from Vinodd


About Vinodd

Born in Mumbai, currently living in Houston, Tx. I love to watch movies during my spare time, play video games, and spending time with my family. I work at Chevron, as a Tech Analyst. Expert in . net, SQL, and Endur. Also a good garderner, and accountant.

Skip Navigation Links.


Latest Snippets by Vinodd


Similiar Snippets




Rate this Snippets  


Sunday April 19, 2009

Pay up or your car engine will stop

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

Posted by Vinodd at 8:26 PM
0 Comments

Help others find this Snippets at Del.icio.us, Digg, Netscape, Reddit, and Simpy.

Comments: