Car Financing Program Could Help Credit-Challenged Drivers

BOSTON -- For anyone with nightmare credit, getting a loan to drive a dream car can be a nearly impossible uphill battle.

But consumer reporter Susan Wornick found a financing plan that for some could be the key to success.

Car dealer Roy LaCroix of Roger Williams Auto says there is a relatively new financing program for people with credit problems. It's called PassTime and it's based on an electronic device which is attached to a vehicle -- a key of sorts.

"It acts as an interrupt between the ignition and the starter on a vehicle," said LaCroix. "If they turn the ignition on, it makes two chirps. The vehicle starts right up."

When you get a PassTime loan, your car also won't start until you punch in the right code. To get the right code, you have to make your car payment.

"Everyone's supposed to pay their bills, and this allows us to make sure they do so," said LaCroix.

You have to make your car payment, because if you don't, you don't get the code and you can't start the car.

Passtime isn't cheap. The interest rate is 18 percent for two years. But it's still a good deal if you can't get a decent car or loan any other way.

Kevin Wallace is a good example of how PassTime works. Like many young fathers, he ran up a lot of credit card debt and had few options when he tried to buy a car. But after two years using PassTime, he repaired his credit and was able to buy a Nissan recently, through a credit union.

"If I didn't have Passtime you know, I wouldn't have a car," said Wallace.

Wallace is a success story, but what happens if you forget to make your payment or have an emergency? Is everything lost?

"If they don't make their payment, then their vehicle will not start. We do give them two emergency codes per period. So, if they did have an emergency, they could still use the vehicle," said LaCroix.