Using GPS Tracking to Discourage Late Car Payments
14 Mar 2019GPS vehicle tracking is a highly useful tool in many rights. Unfortunately, many car dealerships fail to recognize the substantial benefit it offers in discouraging late payments from their customers. When customers know that you can track the precise location of their vehicles and recover them at the first or second missed payment, they are highly motivated to make their payments on time.
The key, of course, is to be up front with customers when they purchase their vehicles about this policy so that it will serve as the deterrent you have in mind to make it work. While you do not need to threaten repossession or recovery at the first missed payment, the fact remains that GPS makes it easier to repossess vehicles once customers default on their loans.
Why does this matter?
First of all, prevention is the best cure. If customers never miss a single payment, the risks of defaulting on their vehicles is greatly reduced. The threat of a repossession after only one day offers substantial motivations to customers to make their payments in full each and every time.
Many dealerships consider remote disablers to be sufficient, however, that doesn’t necessarily help you recover your property. It only disables the property while GPS auto tracking units locate the vehicles to encourage prompt payment of the loan or easy recovery of the vehicle.
The bottom line is that GPS tracking for cars greatly reduces your risks when lending to high risk customers who need reliable vehicles. This means that high-risk customers who may otherwise be unable to get loans for the vehicles they need are now able to do so without the dealership assuming undue risks in the process.
GPS auto tracking even works in rural and/or remote areas to make tracking the vehicles effective even when customers are less than forthright about their locations or addresses.
Other Benefits of GPS Tracking for Auto Dealers
Vehicle recovery isn’t the only benefit to consider when it comes to GPS tracking for auto dealerships. Other benefits you might enjoy for investing in GPS tracking for your auto dealership vehicles include:
- Lower insurance costs.
- Protection against theft from the lot (and faster recovery if thefts occur).
- Allow customers to test drive without fear of them absconding with your vehicles.
You can even help customers keep up with general maintenance needs and preventative care, such as oil changes, thanks to GPS tracking and use that to help them keep their vehicles in great shape. That builds customer loyalty and creates a better experience for all.
If you’re a car dealership looking into ways to improve the efficiency of your dealership and improve car payments, look no further than GPS tracking. Contact us today at LiveViewGPS at 1-888-544-0494 or complete our online form.
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