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I doubt it reduces delinquency rates that much. If you don't have the money, you don't have the money. But I bet it makes it much more likely for the lender to
by ByteJockey 6y ago
I doubt it reduces delinquency rates that much. If you don't have the money, you don't have the money.
But I bet it makes it much more likely for the lender to be able to get the car back in the event of a default (and probably cheaper to recover). This probably does result in them extending credit to people they otherwise wouldn't.
- oh_sigh 6y agoFrom the article: "A leading device maker, PassTime of Littleton, Colo., says its technology has reduced late payments to roughly 7 percent from nearly 29 percent." It's rarely the case that people don't have the money. It's that they have the money, but they'd rather spend it on other things, like food, or entertainment.
- mrstone 6y agoFunny you'd lump food in with entertainment.
- zepto 6y agoHow did they ‘lump them in’? They both seem like things someone would prefer to spend money on than a car payment.
- goldcd 6y agoYes - none of this is magically making the borrower have more money. The sole purpose of this device is to ensure that from an amount of money that doesn't cover their outgoings, the car payment has a higher priority and is more likely to be paid.
- jonnycomputer 6y agoHaving worked repo for a summer, I believe this. We'd drive hundreds of miles in a day, only to find the vehicles not where we thought they'd be.