Mr. Smith was in a hurry to reach his office, but his car would not start. He checked the engine and concluded that there was no mechanical problem with the car. Suddenly, he realized that it was the “Lender Problem.”
What is the “Lender Problem”?
A car is suffering from the “Lender Problem” if the lender has disabled it because of the following reasons:
>> Car driver was falling behind on payments
>> The car was leaving the pre-approved driving area
How do Lenders disable a Car?
Lenders use a GPS-based device called ignition kill switch to stop a car from running. The device is a simple starter-interrupt switch that allows the lender to immobilize a car from a distance. He can simply use a computer or a smartphone to stop the car.
How are Car Drivers reacting to the Device?
Lenders have installed the device in approximately two million vehicles. The ignition kill switch has left car drivers outraged because it raises serious privacy questions. Following are the few problems caused to car drivers because of the ignition kill switch:
>> One Texan woman’s car was disabled by the lender when she left the pre-approved driving area. She was not going on a trip or a vacation but leaving to seek protection at a shelter for battered (assaulted) women.
>> Bolender family of Las Vegas faced the same problem when they had to take their daughter to the hospital. The car would not start because the lender had disabled it.
Why are Lenders installing the Device in Cars?
Lenders give the following reasons for installing the device:
>> It provides security
>> It makes repossession easy
>> It reduces the risk and enables lenders to provide loans to people with very bad credit score
>> Many investors demand it from lenders as it increases the safety of their investment
Even though car drivers are feeling insecure with the installation of ignition kill switches in their cars, lenders claim that they don’t disable the car without prior warning. If a car driver doesn’t make payments after repeated warnings, only then the lenders make use of the device.
What if the Lender wants to install the Device in your Car?
If you have a sub-prime credit score, your lender may insist on installing an ignition kill switch in your car. But, before you agree to the installation, check whether the use of the device is legal in your state. For example, Wisconsin has banned its use. You must also apply with other lenders to check whether you can avail an auto loan without installing any device in your car.
If you have no other option but to agree to the installation, you must discuss the following things with the lender:
>> In what circumstances will he disable your car?
>> How many warnings will be given before disabling your car?
>> Will you be permitted to take your car out of the pre-approved driving area during emergency?
How to overcome the “Lender Problem” successfully?
Even if the lender installs the ignition kill switch in your car, you can avoid the “Lender Problem” by staying on top of payments. You can make regular payments by undertaking the following pre-loan application tasks:
>> Calculate car budget and ascertain a monthly payment amount
>> Make down payment to make your payments affordable
>> Save money to make payments in rainy days
So, this is how you can overcome the “Lender Problem” and drive your car without any worry.
Fast Auto Loan Approval will help you in getting bad credit guaranteed auto loan with quick approval. The company is a leader of the sub-prime auto financing market and will leave no stone unturned in finding you the best bad credit used car loan program. Apply now.