GPS tracking has helped many small car dealerships stay on their feet during times of economic hardship. When people with unstable finances purchase a car, their chances of failing to follow through on payments rise along with the unemployment rate. Buy Here Pay Here dealers can’t afford to lose even one vehicle to financial crisis, and that’s why many have turned to tracking technology to ensure that buyers who default on their payments don’t skip town with the vehicle.
As buyers have discovered this practice, however, many have expressed concerns about their privacy. Should car dealers have the right to know where a buyer is at any given time, simply because they financed a vehicle through the dealership? The answer depends on three vital elements: ownership, disclosure, and device capability.
In the case of a financed vehicle, ownership remains with the dealer until the buyer has paid in full. That means that the dealer does have a right to monitor his assets, even when they’ve left the lot. Without the ability to track the location of a given vehicle, the dealer has no way of instituting recovery procedures if the buyer discontinues payment and refuses to return the car. Dealers lose thousands of dollars in this manner every year, and when the success or failure of a business may hang in the balance, GPS tracking can give them the leverage they need to keep their companies in the black.
The issue of privacy arises when people discover that they’re being tracked without their knowledge. Take cell phones, for example. People know that their cell phones have tracking chips installed, but they don’t worry about it because they know police won’t track them unless they’re in danger or they’ve done wrong. That same mindset can translate to dealership tracking, provided the dealer discloses his use of GPS tracking before closing the deal. Unless you’ve done something wrong, like trying to avoid repossession when you can’t make your payments, the dealer won’t track your location.
Finally, let’s consider the capability of the device itself. Most people simply want to know that the dealer can’t follow them around town using the device in their vehicle. That’s why most dealers use asset recovery devices that remain inactive until needed. If you default on your payments, the dealer can activate the device and locate your vehicle, but he can’t see your location in real time until that point.
In a tough economy, Buy Here Pay Here dealers need the ability to monitor their assets until buyers have paid in full. Tracking capabilities combined with full disclosure policies reduce privacy concerns to nearly nil and enable businesses to continue offering their services, even to buyers with poor credit.
Article Written by Greg Bartlett