Do you see this method of buying cars catching on?

[backwoodsman]

http://www.motoring.co.uk/car-news/immobiliser-dev...

Vehicles purchased on finance can now be disabled automatically if motorists miss payments. This comes courtesy of a keypad operated immobiliser system supplied by U.S. company Prompt Pay. Shall we consider a scenario? Craig has a new car on finance. He has sent his first payment and therefore received a six digit code. He enters this into the immobiliser which allows the car to operate normally – for now. However, three days before the next payment becomes due the immobiliser springs to life. It therefore shows '3' on its screen indicating that Craig has three days to pay. This becomes '2', then '1'. The message is reinforced by beeps. After this, the car will not start until Craig pays to receive a new code.

The immobiliser was launched in the U.S. in 2006. It now – according to Rob Toon the National Sales Manager for Prompt Pay - protects “twenty-five million of receivables in the near to sub-prime sector”. Delinquency, Rob says, sits at “negligible levels." So far, the system has been utilised by at least one-hundred UK dealerships and finance companies. But is that fair? On one hand, leaving a motorist stuck in a multi-story with kids and bags of shopping seems harsh – particularly as payments can be delayed through bank errors, etc. On the other hand car companies are not charities, they require payments to be profitable, and the system provides several warnings before immobilisation. Little harsh then... but fair.
- See more at: http://www.motoring.co.uk/car-news/immobiliser-dev...

[xRIEx]

backwoodsman said:

On one hand, leaving a motorist stuck in a multi-story with kids and bags of shopping seems harsh – particularly as payments can be delayed through bank errors, etc.

If they do their shopping at midnight, then it's partly their own fault. Why would the immobiliser trigger in the middle of the day?

[vikingaero]

This is being discussed on MSE. I think it's a good idea for the sub-prime market.

The device will not immobilise until the car is next turned off and I believe there is a one day per month override button.

[backwoodsman]

I wonder what the APR will be, these are obviously aimed at the sub prime market.

[martinnitram]

Good idea, so long as they fit a visa machine in the dash.

Pay as you go..

No, cant see this catching on.

[DanielSan]

They work up until the point someone works out the way to get around the system....

[The Moose]

If they can't pay for it, they shouldn't be able to drive it.

I guess I should say, if they can't/won't.

It's hardly harsh at all.

The only people I see is vandalism occurring when disabled by the owner who's pissed off

[Northernchimp]

Payment meters on electrical goods have died out due to sub prime finance/rental products (Brighthouse, etc).

Can't see it catching on, unless the improvements in credit impairment make this segment the pay as well as prime, and they can offer APRs that reflect that.

If it was 20% APR without it and 10% with it, then yes, it will catch on. Has applications for hire cars too, surely.

[Fast Bug]

There are already companies in the UK doing this. You get a fresh pin number every week/month depending on your payment schedule. If you don't make the payments, your car won't start and they'll come and collect it using the spare key

[JimmyConwayNW]

I don't really agree with the Wonga loan style car loan providers.

I think this is necessary for the clientele they go after though.