Can't make your car payments? No car for you!
If you ever saw the show Repo Man: Stealing for a Living, you know that taking back a car 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 car loan that's for more than enough to buy a total clunker -- in which case they might not bother with the expensive 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 may, in turn, cut down on the interest rates lenders have to charge on car loans.
But still: don't take out a high-interest loan to buy a depreciating asset. Please, please, please.