I saw this on an auto newsgroup and fund it interesting.
And dangerous too!
The dealership used a system called Webtech Plus as an alternative to
repossessing vehicles that haven't been paid for. Operated by
Cleveland-based Pay Technologies, the system lets car dealers install a
small black box under vehicle dashboards that responds to commands issued
through a central website, and relayed over a wireless pager network. The
dealer can disable a car's ignition system, or trigger the horn to begin
honking, as a reminder that a payment is due. The system will not stop a
Texas Auto Center began fielding complaints from baffled customers the last
week in February, many of whom wound up missing work, calling tow trucks or
disconnecting their batteries to stop the honking. The troubles stopped
five days later, when Texas Auto Center reset the Webtech Plus passwords
for all its employee accounts, says Garcia. Then police obtained access
logs from Pay Technologies, and traced the saboteur's IP address to
Ramos-Lopez's AT&T internet service, according to a police affidavit filed
in the case.
The electronification of your car is becoming more and more intrusive.
There are microchips in things like your tranny, brakes, etc, that
record information without your knowledge. Have an accident? Your
insurance company --and law enforecement-- can access those chips to
find out how fast you were going, how far before impact you actually
hit the brakes, etc. Gee, due to information we retrieved from your
car, we are not going to honor your claim!! Welcome to the future.
Several years ago speeding tickets were issued based on readings from
GPS devices in rental cars. I think that one got squashed, but rental
companies where not happy about it, as it was also the basis for
levying additional charges on the customer. Look for and end run on
I believe this is not a true "car dealer", but rather one of the "buy
here, pay here" type loan sharks that specialize in selling to high risk
customers with credit scores in the negative numbers. I expect on any
given month, 75%+ of their customers are delinquent in their payments.
Understand your concerns about privacy but this isn't a car dealer.
It is one of those places that are set up to serve people in the "new
economy" much like the "rent-a-center" places.
In this case they are giving someone a car and they employ a method to
remotely disable the car if they haven't been paid. My niece worked at
one of those places for a while. She said they are totally upfront about
the use of the device.
But it does point out how utterly and completely clueless most are about
security. The first thing the rental place should have done when they
threw the guy under the bus is reset all of the passwords.
That's what the news outlets want you to get enraged about, but this
doesn't have a damned thing to do with privacy.
Bullshit. Loan shark car dealers have been around for decades. This
operation's core business is nothing new. They "sell" a used car to
someone on a weekly payment schedule and an exhorbitantly high
interest rate. Technically they are only RENTING the car, as ownership
remains with the dealer until the loan is paid.
Miss a payment, and you lose the car. As it should be.
Evidently a major problem with this is the "buyers" moving to a new
address but failing to inform the car dealer. They go to reposses the
car, and nobody's home. The car is nowhere to be found.
Now it CAN be found. I think it's a great idea. The execution could
use a little work, though.
there. The papers reported a court case a year or three ago about buyers
being unable to use their cars even if the payments were current. I
would NEVER deal with a dealer that used such garbage- if I couldn't
afford to buy a decent used car (private or dealer), I'd just keep
buying beaters. Buy here, pay here lots are a sucker bet anyway. Like
rent-to-own furniture, their business is lending money at super high
rates. The merchandise is just a hook to get you in the tent.
More accurately, the "buy here, pay here" outfits are the only option
left to those who have tried to rip off all the legitimate dealers /
banks and have negative credit scores. People who actually pay their
bills don't deal with these places and those who have to deal with those
places dug their own financial graves.
Not saying you are wrong, but there are still $750 used cars out there,
that will get you back and forth to work. The fenders will be flapping
in the breeze, and the seats will need a blanket over them, but they
move under their own power. That is a better option than dealing with a
buy-here pay-here lot, IMHO. Personally, I only buy cars I can write a
check for. Never made payments, never plan to.
the last used vette i bought was about 7 years ago when credit cards were
still offering limited time 0% and no cost transfers of other loans for 1
year. i bounced that loan through 3 different cards before it got paid off,
and never paid interest on the car.
What the hell kind of chick can you pick up in a $750 clunker?
You need to keep up with the times. Do you know you can rent TIRES? Not
only that, but you can rent WHEELS! Some as low as $50/week - but that's for
the whole set.
There are, evidently, females who go all wet when they see the latest
Many if not most of these unfortunates never intended to rip-off
anybody. They found themselves under the bus due to ignorance and
legitimate errors, or circumstances, or a drum of misplaced false
Perhaps a little late to the "we tote the note" game, I ran among the
first of those associated with and located on the lot of a factory
Anyone can hit a bump in the road. If one does not know any of those
ones, they probably don't know many ones.
As applies across the board, interest rates are regulated by law.
The BHPH lot typically charges 0% interest. Profit is derived of an
inflated purchase price and a down that invariably covers the initial
investment which substantially mitigates potential "loss".
The BHPH dealer wants to make money, and for that they must sell a
car, but they hold all the cards. If one is suspect in their
intentions to honor their obligations they leave the lot in the '00
economy car rather than the oversize SUV.
If they buyer won't hear of that, they don't need a vehicle as much as
they they think they need "bling".
They tend to leave in a vehicle similar or identical to the one in
which they arrived.
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