A Financial Engine Shut-off Switch

The devices, which are required by a growing number ofsubprime loan contracts, are the product of a revolution intelematics — the blending of telecommunications and wireless technology.

The devices are usually controlled remotely by the dealeror lender and are linked to the vehicle’s powertrain. They usually cut out the power several days after the payment isdue. Before the deadline, the driver is treated to a concertof tones and flashing indicators signaling that the deadlineis approaching. There are also warnings after the deadline has passed.

Acme Rent-A-Car (its real name) for automatically penalizing renters $150 if (GPS showed) they drove the cars faster than 80 m.p.h.

Both technologies are examples of commitment devices, which help driverscommit to particular behaviors. Both should only be used with abundant ex ante disclosure so that the drivers know what they’re signing up for.

One concern with the financial cut-off switches is that they might leave a driver high and dry when she really needs the car — say, to drive to the hospital in an emergency

借钱买车，其实应该分开来说。一个是，我从企业买车，另一个是，我欠企业的钱。如果我在买车的时候，签了合同，即允许这两件事情的自然衔接，即当我换不了钱的时候，自动交出车。如果没这么签，应该不能自然衔接。就好比三角债，A欠B，B欠C，在没有经得B的同意，C应该不能够直接向C讨债。