Buy Here Pay Here and GPS Tracking

There are 5 Buy Here Pay Here benefits of using a GPS tracking solution in your business. Unfortunately, there are also two harsh realities that plague Buy Here Pay Here used vehicle dealers: customers’ ability to repay their loan and termination of vehicle use.

Customer’s ability to pay

First, stressed economic conditions have created an entire market segment of potential customers with less than ideal credit ratings. Predicting who will responsibly meet their car payments versus who will default is now a very inexact science.

Termination of use of the vehicle

Second, the Buy Here Pay Here dealership must perform many of the functions that banks or finance companies used to perform when a customer defaults on their payments and still retains possession of the vehicle. Consumers who do not pay their phone or utility bills have their services terminated, a universally known fact that forces most consumers to pay these bills in a timely manner. Quickly terminating the use of a vehicle when a buyer misses payments is an important tool to encourage timely compliance.

Benefits of GPS tracking

In the past, the first line of enforcement was limited to collection attempts or lengthy and costly efforts to locate and recover a vehicle that was often hidden. GPS (Global Positioning System) satellite technology now offers a broader range of more timely and reliable alternatives for the Buy Here Pay Here distributor.

1. Real-time satellite tracking

Installing a plug-in GPS tracking module enables real-time satellite tracking of each of your financed vehicles. Your exact address and location are displayed on a map and satellite photo accessible through an Internet website, whether or not the vehicle’s engine is running. If the car is moving, the exact street block, speed and direction of travel are indicated on the map. The Stop Track feature on many GPS trackers also keeps a continuous record of every location where the vehicle stops for more than 30 minutes. This establishes a pattern of the vehicle’s daily usage and destinations, which is very useful if a recovery needs to be run.

2. Accelerated vehicle recovery

Recovery is speeded up. Same day dumps are now possible as the lengthy search and tow process is reduced to simply driving to a known address and retrieving the vehicle already located by the GPS tracker. Many repo teams offer a discount to Buy Here Pay Here dealers who use GPS tracking because it simplifies your procedure and reduces tow truck gas bills.

3. Starter disable function

Starter Disable is the feature of choice when it comes time to play hard. If a delinquent customer fails to respond to the electronic reminder feature or evades other collection attempts, the vehicle’s starter can be electronically disabled through the GPS tracking system’s website. This immobilizes the vehicle where it is parked or the next place it stops if it is in motion. Of course, the location of the vehicle is always visible on the Internet map, so recovery can be done immediately.

4. Protection against theft after business hours

Buy Here Pay Here dealerships display vehicles in outdoor lots 24 hours a day, 7 days a week. The potential for after-hours theft of these easily accessible assets is real. An installed GPS tracker can be used to track and recover a stolen vehicle with the same speedy efficiency that it tracks vehicles by default.

5. Easier selling with greater peace of mind

Your customers also benefit from dealer-installed GPS trackers. The vehicle recovery feature provides the customer with extra stolen security and often results in lower vehicle insurance rates. Buy Here Pay Here dealers can use the GPS tracker as a point of sale to close a deal with a buyer.