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Dealers find solution for late finance payments

Dealers in the US believe they have found the solution to late payments from customers on car purchases.

It’s an ignition lockout system called On Time that alerts drivers with a ‘beep’ when they are three or less days from having to make their next finance payment. If they don’t make the payment they won’t be able to drive the car.

Manufacturer Sekurus claims the devices (pictured), which run from $220-$260, are being used by more than 1,500 US dealerships and have been installed in a quarter of a million vehicles.

So far the plan is to use these only on subprime deals, or for buyers with no credit history.

Alan Underwood, manager of Jones Auto Outlet in Arizona, has used the On Time devices for more than two years. "It reduces the collections/repossession rate drastically, from maybe 25% to 5 or 6%," Underwood said. "It teaches people who haven't had that training to make payments on time."

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