Car giants can track and sell our every move and use this information against us, warns Scott Pape

Car giants can track and sell our every move and the buyers of that data feed it into algorithms and use it against us, warns Barefoot Investor.

Scott Pape is The Barefoot Investor. Picture: Jason Edwards

This week my ute is at the mechanic’s, so I’ve been driving around in a hire car:

A Chinese-built Haval Jolion SUV.

It is hands down the worst car I’ve ever driven (and in my twenties I drove a Mitsubishi Magna that leaked more oil than Saddam Hussein). The Haval makes me feel like I’m 17 years old, back on my L-plates, with my hyper-anxious mother in the passenger seat ‘guiding’ me. It dings if I don’t put on my seatbelt. It dings if I go anywhere near the middle lane. And if I try to overtake a car it completely freaks out and takes over the steering wheel (just like Mum).

Yet the worst thing about the Haval is the ‘driver monitoring system’ – a camera perched on the dash that’s pointed straight at me. Whenever I look away from the windscreen it starts dinging uncontrollably, and a message flashes up on the screen: “Hey don’t stray … yes or no.” I’m pretty sure if I pressed ‘yes’ the car would drive me to a somewhere out the back of Shanghai … if you know what I mean.

It’s infuriating ... but maybe something even more sinister is at play here.

You see, in the US, internet-enabled cars are recording all those dings, swerves and sharp stops, and selling the data for millions to the insurance industry.

The result?

The Haval Jolion SUV is the worst car Barefoot Investor has ever driven.

People are often pinged with higher insurance premiums.

The New York Times wrote about a poor bloke whose creepy car sent more than 130 pages (!) of his driving history – “over 640 trips detailing his speed, braking, and accelerations” – to his insurer.

“It felt like a betrayal”, he told the New York Times, “they’re taking information that I didn’t realise was going to be shared and screwing with our insurance.”

Okay, so you may think your home computer is your biggest privacy risk. Or maybe that your internet-connected security camera is spying on you. However, a new study by the not-for-profit Mozilla Foundation found that “cars are officially the worst category of products for privacy we have ever reviewed”.

They tested all the major car brands – Ford, Toyota, Volkswagen, BMW, Tesla, Nissan, Kia, Hyundai – and found they all failed to meet minimum privacy standards: 92% give you little to no control over your personal data. Most (84%) share or sell your data. And all of them collect too much of your data. (And a shout-out to both Nissan and Kia, who, according to Mozilla, allow the collection of data on a user’s sex life: if the Kia Carnival is rocking, don’t come-a knocking … ding! Ding! DING!)

It’s important to note that this is only happening in the US … for now.

But you can see where it’s heading. The most powerful car companies on Earth have teams of lawyers who craft 12,000-word privacy terms and conditions that they know no one ever reads. This then allows the companies to track and sell our every move, and the buyers of that data feed it into algorithms and use it against us.

At the end of the week, I was very happy to return the Haval and sit in my ute, where the

most advanced technology is the CD player.

Tread Your Own Path!

Single Woman Sorted

Dear Barefoot,

I started reading your book when I got my first full-time job. My brother (a financial advisor!) told me it would be the best thing I’d ever do. He wasn’t wrong. I’ve now bought my own home all by myself at age 26. I’m on an average wage ($75,000) and I work casually at a local supermarket too, to help me pay for holidays! I’ve been renting out of home for six years. I still contribute 15% to super and am debt free (apart from my new mortgage!). I’ve paid off my HECS and I still regularly go on overseas holidays. Nowadays so many people are struggling to buy a home and give up trying. But there is light at the end of the tunnel. It is possible!

Bree

Hi Bree

I can see you bought your place in regional Victoria, where the prices are a little less insane in the membrane. Smart move! You’re a $5 train trip to the big smoke, with all the benefits of the country air.

You’re so far ahead of the game you’re lapping people.

You Got This!

Stop Making Questions Up, Barefoot!

He Scott,

It would appear you’re making up some of your reader questions. The $240k romance scam email you apparently received from Kelly sounds too far-fetched for me. No-one in their right mind would do what you say she did. Please give us real people with real issues in the future!

Steve

Barefoot Investor says doctors, lawyers and police officers have confessed to him they have been taken in by scams.

Hi Steve

Fair suck of the saveloy, Steve – I don’t make them up!

After receiving literally tens of thousands of questions, I can tell you that what’s going on in the burbs is more bizarre than anything I could dream up.

The fact is that scams are a huge and growing part of what people write to me about. I’ve even had doctors, lawyers and police officers confess they’ve been conned.

My role is to shed light on this life-shattering problem and let people know they shouldn’t deal with it in the dark.

Case in point, this week Rebecca (name changed) wrote to me with a totally different reaction to yours:

‘I’m unfortunately another ‘Kelly’, but in my case it was a cryptocurrency romance scam. It’s very shameful to admit. I don’t have assets to sell to make any money back, and at 45 I’m living at home and I have only $5K to my name – and yet I wrote a stranger a cheque for $100K! This is one of Australia’s fastest growing crime types but we are too ashamed and embarrassed to talk about it, but something has to be done.’

Liar, Liar Pants On Fire

Scott,

I am in deep financial debt through my own poor relationship with money and inability to man up. I’m 40 years old and have lied to my loving partner for two years. I will lose her if I

don’t change and take control of my finances. I have $93,000 in debt spread across personal loans, car loans and credit cards. I have never not been in debt, despite being in well-paid jobs all my life (I earn $110,000 pa). I need a way out, and I know that starts with me. Please help!

Craig

Barefoot Investor says there is a path out of financial debt.

Hey Craig

I totally understand the situation you’re in.

When you begin dating you want to put your best foot forward, so you don’t want to show all the financial flab you’ve got hidden in your garter belt. And the longer you stay together, and the more you fall in love, the less you want to disappoint her. Then the shame grows, as you know you’re living a lie.

So it’s time to live the truth:

If you want to create real leverage … tell her exactly what you just told me.

Then show her you’re the type of guy who can pay off that debt. Every last dollar.

Now I have a different view to most people on how to eat the elephant. For me, it’s not really about money, it’s about the mindset you bring to the challenge.

There are three steps:

First, grab a sheet of paper and write down all your debts from smallest (phone bill) to largest (car loans), and their minimum repayments. Second, make sure they’re all up to date and you’ve got the minimum repayments covered going forward. Finally, pay off the smallest debts first, because it will build your confidence when you strike a line through each one.

My final tip?

Post that sheet of paper where your partner can see it … and watch your progress.

And don’t judge yourself for your past actions – celebrate the person you are right now.

DISCLAIMER: Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.

Originally published as Car giants can track and sell our every move and use this information against us, warns Scott Pape