Kill Switch (Vehicle)

A vehicle kill switch, also called a starter interrupt device or payment assurance device, is an electronic module installed at the time of sale allowing a lender to remotely prevent the vehicle from starting. Most commonly used in BHPH and subprime lending.

Kill switches are a risk management tool for dealers and lenders carrying subprime paper. Proper installation, buyer disclosure at signing, and compliance with state notification and activation regulations are all required. Non-compliance creates legal liability that can outweigh the collections benefit.