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GPS technology being used to track down vehicles after the car loan has defaulted.<\/p>\n
Many dealerships cater to individuals who have a bad or no credit rating, but need a vehicle. This might be someone who needs a job, but can\u2019t get one without reliable transportation. These buyers are known as \u201chigh-risk borrowers\u201d because they need a car loan without having credit or collateral. Dealerships have their own reasons for giving loans to high-risk borrowers, but they do pose a higher risk.<\/p>\n
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In the past, a dealership risked losing a vehicle if the buyer suddenly defaulted on his loan and tried to keep the car anyway. Ideally, a customer would bring the vehicle back to the dealership if they were no longer able to pay car payments. In some cases, however, the buyer would run away with the vehicle and it could be close to impossible to find them again — without the help of a repo man.<\/p>\n
Now, thanks to GPS Tracking Technology,\u00a0 there is now a way to track down the car \u2015 or even cause it to stop running (with adequate customer warning) in the event of a customer payment default.<\/p>\n
The GPS technology in sold vehicles from high-risk dealerships would, in a sense, be somewhat of a trade. The customer would be aware of the GPS device installed in the vehicle and that if they don\u2019t pay their loan according to the terms, the dealership can disable it remotely and track its whereabouts. The dealership informs the buyer of the tracker and they must sign a document saying they understand the installed device in their vehicle. The agreement would also state that the GPS device is deactivated once the loan is paid off in full.<\/p>\n
This smart technology serves to benefit both car dealerships and car-buying customers:
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Auto Dealership Benefits:<\/b><\/p>\n