Automobile Financing Tips: Electronic Payment Protection Systems

A tiny electronic device, no bigger than a pack of cigarettes, is responsible for increasing car dealers’ cash flow by up to 38% and reducing repossession loss by 50%. The gadget responsible for these impressive numbers is called On Time, which is an electronic device installed in financed automobiles to guarantee payments are made in a timely manner – if not, the car won’t start.

It may sound a little harsh, but in reality On Time also benefits consumers because it enables credit-challenged drivers to get better interest rates and nice new cars, as long as they make their payments on time, of course. Making consistent car payments also can help rebuild a less-than-perfect credit history.

This electronic payment protection unit is connected to the financed car’s starter. Every time payment is due, the device will remind the driver and if he doesn’t pay on time, the car won’t start. Once payment is made, the driver is given a code to enable the starter and get another 30 days of driving, until the next payment is due.

A similar device, called Pass Time, combines start-interrupt software and wireless technology. According to the company’s information, its electronic payment device protects $1 billion in assets and is installed in 50,000 vehicles across the country.

Payteck is the third of these gadgets and is designed to help drivers stay on top of their car finance loans. It also serves as an anti-theft device, which can help you lower insurance premiums by up to 20%.

Although most drivers and car dealerships that use the technology seem to like it, some groups like Consumer Action protested what they called an intrusive and demeaning device. However, lawsuits heard by courts were decided in favor of the car dealerships.


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