I saw this story on Yahoo today about a little box that some subprime borrowers are getting installed on used cars that they purchase:
When the light starts to flash, you had better have the cash.
That’s the reality for millions of subprime borrowers whose used car purchase is contingent upon having an unusual option: a little box mounted underneath the dashboard that forces them to make their payments on time.
If you don’t pay…your car gets shut off and won’t start. The only way to get it back is to make your payment and receive a special code. If you don’t pay, then the repo man comes for a visit.
I don’t think it’s necessarily a bad thing. When my husband and I bought our first vehicle together, our credit wasn’t that great at the time but we did end up getting a loan with the help of a co-signer. If we had the option of having one of those boxes instead of having a co-signer, I would have gone for the box.
What about you? What do you think of the boxes?