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Nyt: Behind On Your Car Payments? Your Lender Will Remotely Immobilise The Vehicle

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From New York Times - link

Well here's a rather strange turn of events. Subprime borrowers taking out car loans must have an immobiliser fitted to the car. If they fall behind on their payments, the lender remotely disables the car. Apparently 2 million vehicles are kitted out in this way.

Makes you wonder what they'll try next? :blink:

New York Times: Miss a Payment? Good Luck Moving That Car - link

This new technology is bringing auto loans — and Wall Street’s version of Big Brother — into the lives of people with credit scores battered by the financial downturn.

Auto loans to borrowers considered subprime, those with credit scores at or below 640, have spiked in the last five years. The jump has been driven in large part by the demand among investors for securities backed by the loans, which offer high returns at a time of low interest rates. Roughly 25 percent of all new auto loans made last year were subprime, and the volume of subprime auto loans reached more than $145 billion in the first three months of this year.
But before they can drive off the lot, many subprime borrowers like Ms. Bolender must have their car outfitted with a so-called starter interrupt device, which allows lenders to remotely disable the ignition. Using the GPS technology on the devices, the lenders can also track the cars’ location and movements.
The devices, which have been installed in about two million vehicles, are helping feed the subprime boom by enabling more high-risk borrowers to get loans. But there is a big catch. By simply clicking a mouse or tapping a smartphone, lenders retain the ultimate control. Borrowers must stay current with their payments, or lose access to their vehicle.

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Ford now make more money from there car "loans" business than they do actually selling cars so its not surprising. Using stupid finance packages they allow people to "buy" cars they could never normally afford.

I know someone in this industry who chases payments, I was talking to him and he thinks its great he makes large amounts of money repossessing cars. I asked him regards the morality of what he does and he said "if dumb f**king (racists statement) are stupid enough to buy cars they cant afford then f**k them."

There is an entire fake financial industry now profiting form selling people cars they cannot afford taking as many payments as you can then repoing the car. Predatory lending isnt exclusively for wonga!

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(vaguely) On the same theme has anyone noticed the number of radio adverts for cars that go along the lines of...Roll up Roll Up, get your cheap monthly payments car here...you'rs for own £119 pcm.

Swiftly followed by, final payment of £5400, this is a lease deal, you will not own the car.

So the price is actually £119+£150 pcm not to own something.

What happens when you can't find the final payment money ?

The car industry must be in real trouble to be doing this sort of thing.

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(vaguely) On the same theme has anyone noticed the number of radio adverts for cars that go along the lines of...Roll up Roll Up, get your cheap monthly payments car here...you'rs for own £119 pcm.

Swiftly followed by, final payment of £5400, this is a lease deal, you will not own the car.

So the price is actually £119+£150 pcm not to own something.

What happens when you can't find the final payment money ?

The car industry must be in real trouble to be doing this sort of thing.

Not really - just makes them more money - regular monthly income - appears to be the golden goose for many industries these days - rather than a one off payment.

I suppose they are just trying to take some if the banks schemes away from them and cut out the middle man.

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(vaguely) On the same theme has anyone noticed the number of radio adverts for cars that go along the lines of...Roll up Roll Up, get your cheap monthly payments car here...you'rs for own £119 pcm.

Swiftly followed by, final payment of £5400, this is a lease deal, you will not own the car.

So the price is actually £119+£150 pcm not to own something.

What happens when you can't find the final payment money ?

The car industry must be in real trouble to be doing this sort of thing.

If it wasn't for finance packages the car industry probably wouldn't exist at all, in its present form.

How many people do you know who have put down cash for a brand new car? I know only one, I think.

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Not really - just makes them more money - regular monthly income - appears to be the golden goose for many industries these days - rather than a one off payment.

I suppose they are just trying to take some if the banks schemes away from them and cut out the middle man.

Yeah, I can see that, As the 2nd poster says, it's probably win/win for the car industry.

The asking prices for cars make no sense now it's just how much they can screw out of someone on a monthly basis.

That sounds all too familiar.

People really are stupid.

On going forever monthly payments:

Mobile phone

Car

Shelter

Electricity

Gas

Council tax

Insurance

Broadband

Every felt like you are being stitched up ?

Edited by TheCountOfNowhere

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(vaguely) On the same theme has anyone noticed the number of radio adverts for cars that go along the lines of...Roll up Roll Up, get your cheap monthly payments car here...you'rs for own £119 pcm.

Swiftly followed by, final payment of £5400, this is a lease deal, you will not own the car.

So the price is actually £119+£150 pcm not to own something.

What happens when you can't find the final payment money ?

The car industry must be in real trouble to be doing this sort of thing.

Because 'affordable' no longer means the price on the windscreen, it means the monthly payment.

Sound familiar? ;)

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Because 'affordable' no longer means the price on the windscreen, it means the monthly payment.

Sound familiar? ;)

Our posts must have cross in the ether, I totally agree.

The car/wonga style financiers have no qualms about forcefully taking what is there's when the repayemtns can't be met......

Edited by TheCountOfNowhere

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ThInk how much you can bleed out of a car? say the asset is worth 10k and you lend say 15 against it, take maybe 5k before they stop paying. then repo then sell with finance again. Even although its a depreciating asset your gonna make at least double out of what it was ever worth.

Also maintenance, I had a friend who was a mechanic and was sick of customers moaning about bills when they didnt get there flashy beemer serviced every year, maybe leave it for a bit and then complain about the 1200 quid bill. I actually know a guy who done real damage to his boxster missing a service.

The UK is full of luxury cars with only ever a fivers worth of petrol in them.

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ThInk how much you can bleed out of a car? say the asset is worth 10k and you lend say 15 against it, take maybe 5k before they stop paying. then repo then sell with finance again. Even although its a depreciating asset your gonna make at least double out of what it was ever worth.

Also maintenance, I had a friend who was a mechanic and was sick of customers moaning about bills when they didnt get there flashy beemer serviced every year, maybe leave it for a bit and then complain about the 1200 quid bill. I actually know a guy who done real damage to his boxster missing a service.

The UK is full of luxury cars with only ever a fivers worth of petrol in them.

A car generates 400% of its purchase cost in total costs over its lifetime.

Far more than any house will cost you over your lifetime and at the end of it? You're looking at a heap of scrap metal

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ThInk how much you can bleed out of a car? say the asset is worth 10k and you lend say 15 against it, take maybe 5k before they stop paying. then repo then sell with finance again. Even although its a depreciating asset your gonna make at least double out of what it was ever worth.

Also maintenance, I had a friend who was a mechanic and was sick of customers moaning about bills when they didnt get there flashy beemer serviced every year, maybe leave it for a bit and then complain about the 1200 quid bill. I actually know a guy who done real damage to his boxster missing a service.

The UK is full of luxury cars with only ever a fivers worth of petrol in them.

Spot on.

'Rangie' <_< in the drive, ****** all in the cupboards.

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Ford now make more money from there car "loans" business than they do actually selling cars so its not surprising. Using stupid finance packages they allow people to "buy" cars they could never normally afford.

I know someone in this industry who chases payments, I was talking to him and he thinks its great he makes large amounts of money repossessing cars. I asked him regards the morality of what he does and he said "if dumb f**king (racists statement) are stupid enough to buy cars they cant afford then f**k them."

There is an entire fake financial industry now profiting form selling people cars they cannot afford taking as many payments as you can then repoing the car. Predatory lending isnt exclusively for wonga!

Sorry but surely if you are adult and you "rent" a car you have to sign documents stating how much the loan repayments will be? Part of the problem these days is that nobody is supposed to be responsible for themselves and their stupid financial decisions.

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Now you see I do mind this whole monthly payment thing. My Nissan Leaf is an electric vehicle and saves me around £120/month in fuel. Taking all costs into account of running an older car against my nice brand new one, the additional cost over the 4 years of using the car will be £80/month.

I think that's a fair price to pay for driving a very well equipped brand new car, compared to driving a 7 year old Fabia Tdi.

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While looking for my 5 minute daily TV viewing looking for the weather forecast I managed to catch something called cant pay we'll take it away with neil 'razor' Ruddock.

Have to say, I wouldn't object to his car being immobilized. What a vile person, and his 'wife'...the less said the better. Course, once he remembered he's on TV, the mr nice guy switch activated. But we saw for a little while what a self centred little scrote he is.

I wonder if he and wife are one of Fungus's tenants, 520d on finance, recent bankruptcy, lives in a new build in ashford...

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While looking for my 5 minute daily TV viewing looking for the weather forecast I managed to catch something called cant pay we'll take it away with neil 'razor' Ruddock.

Have to say, I wouldn't object to his car being immobilized. What a vile person, and his 'wife'...the less said the better. Course, once he remembered he's on TV, the mr nice guy switch activated. But we saw for a little while what a self centred little scrote he is.

I wonder if he and wife are one of Fungus's tenants, 520d on finance, recent bankruptcy, lives in a new build in ashford...

Oh that is so funny! Yes, he could well be one of their tenants. I haven't seen the programme but I found this.

"‘Do you know who I am?’

I told him I did because I had his name written down.”

:lol:

:lol:

:lol:

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(vaguely) On the same theme has anyone noticed the number of radio adverts for cars that go along the lines of...Roll up Roll Up, get your cheap monthly payments car here...you'rs for own £119 pcm.

Swiftly followed by, final payment of £5400, this is a lease deal, you will not own the car.

So the price is actually £119+£150 pcm not to own something.

What happens when you can't find the final payment money ?

The car industry must be in real trouble to be doing this sort of thing.

I mentioned this oh, 2 years ago maybe.Mercedes Benz adverts, nothing about the car, all of it based on the monthly price. The message it gave to me - their product must be shit, they have nothing good to say about it, nothing to differentiate it from competitors and the only selling point the finance deal and monthly price.

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Now you see I do mind this whole monthly payment thing. My Nissan Leaf is an electric vehicle and saves me around £120/month in fuel. Taking all costs into account of running an older car against my nice brand new one, the additional cost over the 4 years of using the car will be £80/month.

I think that's a fair price to pay for driving a very well equipped brand new car, compared to driving a 7 year old Fabia Tdi.

Did you factor in the battery lease and the new battery after 8 years?

I'd love to see your sums showing a leaf (essentially it's a renault) only costs you £80 a month.

Actually I think it's pretty much balls.

Edited by 2buyornot2buy

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A car generates 400% of its purchase cost in total costs over its lifetime.

Far more than any house will cost you over your lifetime and at the end of it? You're looking at a heap of scrap metal

Maybe in your lifetime but not in mine.

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Oh that is so funny! Yes, he could well be one of their tenants. I haven't seen the programme but I found this.

"‘Do you know who I am?’

I told him I did because I had his name written down.”

:lol:

:lol:

:lol:

I guess the hint was the be-siliconed peroxided wife repeatedly saying 'I own this house, this house is mine' that threw the notion 'that house probably isn't hers' into my mind. :lol:

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A new company car with all costs of bumps, scratches and dents (along with general maintenance) borne by the company is one thing but with so much congestion and couldn't care less driving these days not least in congested car parks a second hand runabout is better value overall.

According to the movies everyone in the US is so streetwise and can hot wire stuff etc but it looks as if that's just another movie myth.

Edited by billybong

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http://

www.kentonline.co.uk/ashford/news/do-you-know-who-i-24036/

Every official these days seems to wear pretend police uniform - black with the blue and white checked strips plus the black plastic bits and pieces.

If you get behind with your mortgage etc they probably turn up pretending to be almost police. It's against the law to impersonate a police officer but if it's got a loose attachment to the government then of course it's ok.

Edited by billybong

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Ford now make more money from there car "loans" business than they do actually selling cars so its not surprising. Using stupid finance packages they allow people to "buy" cars they could never normally afford.

I know someone in this industry who chases payments, I was talking to him and he thinks its great he makes large amounts of money repossessing cars. I asked him regards the morality of what he does and he said "if dumb f**king (racists statement) are stupid enough to buy cars they cant afford then f**k them."

There is an entire fake financial industry now profiting form selling people cars they cannot afford taking as many payments as you can then repoing the car. Predatory lending isnt exclusively for wonga!

You’re right that the initial sale of the vehicle isn’t the profitable part, it’s a cost for the most part.

But you’re wrong to say that more money comes from Finance. It’s part of the equation sure, but most profit comes from after sales parts and service.

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