Bad credit is a fact of life for many people, especially during an economic recession. The fact remains, however, that those people still need a reliable vehicle to take them to and from jobs and to do other necessary daily driving. If the family car breathes its last, everyone still needs to have an option for reliable transportation. Buy Here Pay Here car dealerships have helped fill some of the credit gap by financing vehicles for buyers who might not otherwise be able to qualify for a loan. They assume heavy risk, however, since poor credit often indicates inability to keep up with monthly payments. By installing an auto tracking device, these dealerships can continue to provide the needed service of financing for folks in need of transportation but who have less than perfect credit scores.
Benefits for Dealers
There are several ways an auto dealer can benefit from installing GPS vehicle tracking on the cars he sells. First, it’s the best way to combat auto theft. If a car disappears from the lot, the dealer can simply log on to his computer, pinpoint the vehicle’s location, and hand the information over to the police. Another benefit for dealers is that they can monitor a vehicle sold to someone with poor credit and easily recover that vehicle if the buyer defaults on the loan. In these cases, the dealer usually retains the car’s title until it has been paid for, meaning that by tracking the car he is simply monitoring his assets. Dealers should inform buyers about the presence of the device before the sale, giving them the option of not buying if it makes them uncomfortable. Finally, dealers can use the monitoring technology to keep an eye on cars driven by employees. When salespeople know their driving is under observation, they’ll be less likely to run up the miles or engage in risky driving behavior.
Benefits for Buyers
Dealers aren’t the only ones who benefit from having GPS vehicle tracking installed, however, Buyers can also benefit, since dealers will usually be more likely to finance the vehicle for someone with poor credit if they know that they have the ability to find and retrieve the vehicle in the case of a loan default. In addition, the tracking system serves as an incentive for buyers to make their payments on time according to a study done by the NIADA Used Car Industry in 2006.
Both buyers and dealers can benefit from having vehicle tracking devices installed in used cars sold at Buy Here Pay Here dealerships. The key is transparency on the part of the dealer so that the buyer knows he is being monitored and can agree to the increased level of accountability the device brings into the equation.
Article Written by Greg Bartlett