Used Car Dealers Using GPS Tracking to Monitor Car Financing

15 Jan 2015

Used car dealers are now using updated GPS tracking technology for cars they finance, in case a buyer defaults on payment.

Selling a used car to someone who has a bad track record for paying their bills on time, has no credit, or who has poor credit is always a risk. However, many dealerships are turning to GPS tracking technology to sell cares to high-risk buyers.

Since there is no real guarantee they will receive their payments, and these high-risk customers can really put a dent in their revenue stream, many used car dealerships have decided to incorporate modern GPS tracking technology.

Global positioning systems (GPS), which uses the same technology for mapping and navigation, are being used by local car dealerships in Waco, Texas for tracking purposes They are installing GPS tracking devices in used cars they sell so that they can locate the car if someone misses a payment.

The devices are only placed in vehicles that are financed through their dealership, so that they can retrieve the car from the buyer if they do not receive a monthly car payment. Not only does it give the dealership more security, but it enables them to sell cars to those with poor or no credit.

There are at least three dealerships in the area using GPS tracking devices, including Massey Motors. The customer gives consent to them before installing the device; most are fine with it because it ensures they can get financed for their car.

Eddie Massey, who is the owner of Massey Motors, says the dealership doesn’t track the vehicle immediately. IT first sends notices to the customer letting them know their payment is late, then begins calling their references.

If they are still unable to get payment or the customer does not return the vehicle for missed payments, the dealer will then use the GPS tracking device to locate the car. Massey tries to work with people before resorting to getting the car back from them. However, she feels that if they get more than a month behind, she probably won’t see payment from them.

While each tracking device costs about $150, most car dealership owners believe it is worth the investment. The average monthly car payment is more than that, so they are getting their money’s worth. If nothing else, it encourages the customer to pay their monthly car payment on time, or at least contact the dealership if they can’t pay for whatever reason.

Not only do the customers sign a contract saying they understand their vehicle is tracked with a GPS device, but they are legally abiding by the rules to not deactivate, remove or destroy the device. There are also some dealerships that can use a GPS tracking device that also shuts down the vehicle, if they need to.

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