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As GPS tracking has become more and more widely used and understood, one industry that has benefited greatly from this technology is the small, independent car dealership that advertises on-the-spot-credit, or what is known as “buy here, pay here.” Unlike many large dealerships, the small, independent businesses own their inventory and continue holding the title until the customer pays off the car loan. If the car is stolen or the customer stops making payments, the dealership forfeits its profit, not to mention spending time and money to try to track down the owner or the car.

Often, people taking advantage of the dealership financing have challenging financial circumstances, thereby necessitating this type of arrangement. Perhaps they are not able to get a bank loan because of bad credit or lack of a job. They cannot pay cash for a car either so they opt for the “buy here, pay here” solution, but that is not without potential problems for the dealership. The solution is to have GPS tracking installed on the vehicle which will send alerts to the customer if a car payment is late. After a series of warnings without response from the customer, the car will be disabled so that it will no longer start. If this doesn’t resolve the situation, the dealership is able to track the vehicle and repossess it.

According to Jake Rockwell of Valley Boys Auto Sales in Oregon, “We’re financing people who have a low credit score, as low as 300 or 400 credit scores… No one else is gonna give ‘em the time of day and finance them. There’s a huge risk.” His dealership normally installs the tracking devices under the hood of the car, but doesn’t reveal the exact location to the customer. However, the customer is aware that there is a device in place and Mr. Rockwell states that no one has ever objected to the technology.

GPS tracking on vehicles makes all sorts of sense for the dealer who is taking on all the financial risk. An added incentive is that this relatively small investment will pay off in reduced insurance premiums for the dealership. By having a this safeguard in place, small independents can continue to offer reliable cars to clientele who can’t get one elsewhere, but they also can protect their own financial interests. These are challenging economic times that require creative solutions.

Article Written by Greg Bartlett