This is new to me

[BoatBuoy]

My sister has been car shopping. Yesterday she found and bought what she was looking for. Before that, she was warned by one of the dealers, that some dealerships are now putting some kind of LoJack on the cars that are financed through the dealer. If your payment is late, they shut it down remotely. Anybody else ever heard of this?

 

[angus63]

Re: This is new to me

Repo Man in a can!
Never heard of this practice around here.

 

[HopeSheFloats]

Re: This is new to me

They've been using that here for a couple years now...usually it's the dealers with the "guaranteed financing" which means, 'to those willing to pay obscene interest rates', or due to shaky credit ratings & the customer can't go elsewhere.

 

[DaleT]

Re: This is new to me

There was a dealership in Detroit that utilized them some years ago. Last I heard there was a lawsuit pending over whether the practice was legal or not, at least in Michigan. Not sure what the out come was but if you want to look it up, the dealership was Mel Farr.

 

[HopeSheFloats]

Re: This is new to me

There was a dealership in Detroit that utilized them some years ago. Last I heard there was a lawsuit pending over whether the practice was legal or not, at least in Michigan. Not sure what the out come was but if you want to look it up, the dealership was Mel Farr.

He settled out of court I believe, he was shutting vehicles off on supposedly late payments, whether the vehicle was in motion or not, again if I recall correctly{settlement gave $200 in coupons to each of something like 1500 effected.

The lo jack thingy's nowadays are used mainly for repo jobs, again 'iirc'

 

[thefairlaneman]

Re: This is new to me

Thats a great idea. I think they should be on all cars. If your insurance expires or if you speed more than20 mph over. It turns off

 

[JB]

Re: This is new to me

Thats a great idea. I think they should be on all cars. If your insurance expires or if you speed more than20 mph over. It turns off

EEK!!

Well, I agree that it would be good to disable cars of drunks, but that is about it.

1984 was 26 years ago.

 

[ezmobee]

Re: This is new to me

There was an article in our local rag about it once. I think it was the Buy Here, Pay Here weekly payment type places utilizing it.

 

[lowkee]

Re: This is new to me

It's obvious those places expect to re-sell those cars or they would never put in the investment into a car they were selling cheap. The lawsuits should begin just on that mentality alone. They are financing cars to people in full expectation of them not affording it.

 

[mphy98]

Re: This is new to me

It's obvious those places expect to re-sell those cars or they would never put in the investment into a car they were selling cheap. The lawsuits should begin just on that mentality alone. They are financing cars to people in full expectation of them not affording it.

Being in that business for 30 plus years(sales, finance,gm of a new car store) I can fully understand why the dealer would do this if it is a dealer finance option. There are people out there that will buy cars without any intention of paying for them. Remember who owns any car that is financed. Not the buyer... It is the person who holds the paper. When people want to finance instead of leasing the old line was I want to own my car. We used to say... well, miss two payments and see who really owns it. Yes there are some dealers that are bad out there, but there are just as many, possibly more customers that are worse. In today's economy anything can happen. Just a phone call and a promise fulfilled will keep the repo man away. The dealer really does not want the car back. It involves so much paperwork, time, attorneys and that does not even begin to touch reconditioning a repo car. They are always trashed. So take a look at both sides before you judge a dealer. They are not always the bad guy. Just like boat dealers and attorneys. The few that are bad give all a bad name.

 

[Summer Fun]

Re: This is new to me

We have them here. Its call pay as you go financing . No pay No go.

 

[DaleT]

Re: This is new to me

Wasn't trying to imply the dealers were the "bad guys" in the whole thing. Merely stating that it has been done for a long time and there were court cases involved.

If the courts have ruled it "illegal" then i would shy away from that particular dealership. Otherwise, if you make your payments you have nothing to fear.