The Big, Bad ONLINE Repo Man: Why Auto Loans Are Now Scarier Than Ever
Isn’t it amazing how the Internet has swallowed the entire natural world whole, delving into every industry you can imagine, even the automotive industry? You can practically sell a home with social media these days. Without a doubt, identity theft has largely skyrocketed into the number one position as most heinous crime in all of the U.S. — all because of our online connectivity. Yet we still love our Internet! And we should.
Auto Lenders Love the Internet, Too, as They Now Can Keep an Eye on Those Auto Loans Without Ever Hiring an Actual Repo Man to Do the Job
Yes, you heard correctly: you might be unaware of it, but your vehicle at this very moment just might be monitored by the very person who sold it to you: your lender. This makes auto loans like those venus flytraps, poised and ready to snap at the next hapless insect to walk across looking for nectar. You may be the insect.
Why are auto loans so dangerous now, you say? Think about it. You finance a car. You have a car payment. You have an auto loan. But you’re behind by about three months. Thanks to the Internet and technological advancements and GPS, you might have a car with a device installed into the dashboard tapping into a wireless signal managed by the lender. That device has the power to basically ‘lock’ your car. As in you won’t be able to start it. No driving. Not even listening to the radio. And the best part for the lender? The lender can do it from the privacy of his or her own home.
The Benefits for the Automotive Sales Industry
It sounds scary. But don’t get me wrong — the benefits are obvious. No longer do lenders have to chase down their auto loan holders with repo men scouring the neighborhoods looking for those vehicles and then driving off in the middle of the night. If a lender notices that those auto loans are behind on payments, as long as it’s seen that the drivers aren’t operating the vehicles, that lender can literally shut off those vehicles and prohibit anyone from driving them.
Contrary to what you might think, this motivates those holders of auto loans to get going on catching up on those payments, because as long as they’re behind, their vehicles sit in the garage with no chance of seeing daylight. It diverts more power and authority to the lender of auto loans, thereby encouraging anyone with even low credit scores to ensure that they’ll cover their payments every month, no matter the obstacle. There’s a dark side to this, though….
Why You, the Driver, Should Worry
What if you’re in danger of dying from asthma? What if your child’s in danger of dying from asthma? You have to get to the hospital, and your car won’t start because your lender disengaged the ignition from afar. One would consider this a case of over-control, privacy invasion and an infringement of natural rights. Case in point: this particular technology even allows the lender to remotely monitor exactly where each vehicle is in real-time, at any given time.
Yes, you’ve got to love the Internet. And lenders with delinquent auto loans do as well.
Believe It or Not, But This Benefits the Industry as a Whole
Because of this technology, lenders are able to issue out their auto loans to more high-risk borrowers, because the efficient insurance is now available. They can monitor everything you do. You can’t dodge these lenders anymore. You now have no choice but to start paying on those auto loans.
As far as technology goes, this is a true industry automotive financing issue not like anything Google or Apple would bring to the table regarding automotive smartphone technology or even Lego building (you have to read this one to believe it!). And it’s one issue paved with some of the most heated implications.
So I ask you: what do you believe? Do you believe lenders with their auto loans deserve this much power to control you and your vehicles? Or not? Questions, comments, thoughts?
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