Car Dealerships Have Discovered GPS Tracking Technology
22 Feb 2012In effort to prevent consumer car buyers from defaulting on their loans without returning their vehicle, car dealerships are beginning to use GPS tracking to keep a convenient, close eye on vehicles that still legally belong to them. With the economy still not in the best of shape and millions of people unemployed, car dealerships see GPS tracking devices as a way to provide an extra level of insurance and a protection of dealership assets.
Some car dealerships use a GPS tracker when selling vehicles to people who have poor credit, low income, or otherwise are considered high-risk loan candidates. Other dealerships only activate installed devices when someone is delinquent on a loan.
While the goal is to be able to recover vehicles when a consumer is unable to pay for it, the devices are also helpful in recovering cars that have been stolen from their brand new owners. Thus, serving as another deterrent for would-be car thieves.
Due to invasion of privacy issues, most car dealerships are disclosing the use of the GPS tracking devices before the sale is final. If a dealership is going to install a GPS tracking device, it notifies the buyer that the device will be installed, but only activated if the buyer defaults on their payment and fails to return the vehicle to the dealership.
In some cases, a starter interruption device, sometimes referred to as remote kill switches, is also used to disengage the vehicle, shut the engine off, and remotely disable the vehicle in the event of a defaulted loan.
Using GPS tracking for potentially delinquent loans isn’t the first resort. Generally speaking, a car buyer is given some warning and lead time before a car is repossessed. They may be reminded of a late payment with letters, phone calls, additional interest, or even penalties before the car dealer resorts to activating an installed GPS tracker or starter interruption device as a means to get their vehicle back.
Car buyers do have the opportunity to walk away from the deal, but if they have poor credit, low income, or desperately need transportation, they may be unlikely to.
