Car Dealerships and BHPH Shops: Your Essential Guide to GPS Tracking

GPS Tracking for Car Dealerships and BHPHs
Posted by GPX Team on May 29, 2024
Table of contents
    Kim Dazey

    GPS Tracking for Car Dealerships

    In the ever-evolving auto sales industry, particularly within the Buy Here Pay Here (BHPH) sector, the balance between risk management and the ability to offer favorable financing options is crucial. For dealership customers with subprime credit histories, traditional financing methods are often not an option. This is where innovative solutions like advanced GPS tracking come into play, serving as a critical tool for car dealerships and financiers. 

    Dealership owners and financiers review many components of a GPS supplier’s product offering. Upfront cost of a GPS solution is a paramount consideration as payments are often received from customers over a 12 to 60 month time horizon. Low cost providers, however, frequently hide poor functionality behind a low price; dealership owners and financiers too often learn this the hard way when upfront savings are wiped out by a lost financed vehicle or trailer due to a GPS failure.

    GPX Intelligence, a leading provider of GPS tracking services, enhances the ability of dealerships to extend credit confidently and manage assets efficiently. GPX has spent years developing a reliable and intuitive platform to manage financed assets that delivers when you need it. They have scoured the earth – literally – for affordable, high performance, GPS tracking devices that meet the pricing needs of BHPH customers and perform reliably for up to 10 years. GPX pricing is competitive and supported by best-in-class customer success managers that understand the needs of BHPH operators.

    GPX’s customers realize the benefit of a reliable and true partner to support their business. A new customer recently championed her transition to the GPX platform over her experience elsewhere:

    I do go to the platform to check the trackers to verify they are all still locating, and so far I have seen no issues. I have dealt with many companies that offer the installed trackers (goldstar, advantage gps, imetrik, etc.) and you have about a 50/50 chance of it still locating.

    Those companies like to tell you it is likely the customer found it or it is an installation issue, but [in] my experience from having to watch them everyday (200 trackers or more) it is usually faulty equipment. I am impressed with your product due to the fact they are all still tracking. 

    It’s not nearly as many as I had to keep up with before, but all in all I believe you guys are selling a good product and you guys have good service to maintain the connection. This is my first time using the non-installed [non-wired] devices and I like them. It is so easy to just stick it to the vehicle and it’s ready. Keep up the good work guys.

    – Finance Operations Manager

    This detailed exploration discusses the importance of GPS tracking for automotive dealerships and BHPH operations, emphasizing the robust solutions offered by GPX Intelligence. Read on to gain a better understanding of why a low-cost-provider will  likely cost you dearly over the long-term.

    The Growing Need for GPS Tracking in Auto Financing

    At the risk of stating the obvious, BHPH dealerships only operate profitably if their customers fulfill their commitments to pay. In the event of non-payment, owners and operators need the ability to repossess a vehicle, eliminating their exposure to loss.  Unfortunately, the financial landscape for automotive dealerships is becoming increasingly precarious as consumer defaults are on the rise. 

    Bank Reg Data recently released their report on Auto Loan Net Charge Offs, reflecting non-payment of auto loans by consumers. The last quarter of 2023 saw Auto Charge Offs soar to 1.83%, marking the highest level since early 2011. Early Stage Auto Delinquincies and Non-Performing Loans are also reaching all-time highs at 2.66% and 0.65%, respectively. Regardless of the data point referenced, the story remains: customer non-payment events are on the rise, signaling a tough period ahead for auto financiers.

    Auto Charge-Off Rate
    This data tells us that the likelihood a customer will not fulfill their payment obligations is on the rise. Fancy data points aside, non-payment means financial loss for dealerships providing flexible financing options to their customers. If a dealership cannot go out in the field and repossess a vehicle or trailer in the event of non-payment, they will not be in business very long. A few losses can put a successful business out of business quickly.

    This doesn’t mean, however, that dealerships should close their doors and stop offering financing options to their customers. It means owners, operators, and financiers need to leverage technology to provide an additional layer of security to protect their investments, while meeting the needs of their customer base.

    GPS Tracking to Mitigate Auto Loan Risks

    In such a challenging environment, GPS tracking technology is not merely a technological advancement but a fundamental necessity. These systems allow dealerships and financiers to efficiently recover financed assets during repossession, making it feasible to offer financing terms that would otherwise be too risky. The security provided by GPS tracking thus enables broader access to vehicle ownership, which is crucial for building customer bases and fostering financial inclusion.

    Accompanied by the proper disclosures (please reference local laws and regulations), a GPS tracker can be placed on a financed asset for the duration of the loan period. We’ll cover the technology in greater depth later in this document, but these GPS devices will report a vehicles location once per day, with the ability to report as frequently as every two minutes. This location visibility empowers financiers to proactively recover assets, quickly in the event of non-payment.

    What To Look For in A GPS Tracking Solution

    The most important characteristic of a good GPS service provider is reliability; if a supplier’s GPS technology fails in the field or the platform doesn’t provide a customer the information they need, when they need it, the benefit of using GPS is quickly eliminated. Fortunately, GPS technology has come a long way over the years; the right supplier can provide dealerships with reliable GPS trackers that will report an asset’s position at least once per day for a period of up to 10 years.

    Second to reliability, a good GPS supplier can provide a product that is easy to install, simple to track, and easily adjusted remotely to provide a seamless repossession should the need arise.

    • Battery powered devices do not need to be wired into the vehicle; they can be placed anywhere within or on the tracked asset and report reliably for up to 10 years
    • Mounting brackets and magnetic bases built into a GPS device make it easy to attach a device to the tracked asset
    • GPS platforms allow users to see the current and historical location of all of their tracked assets
    • Alerts based on geofences can help users define key areas of interest, like leaving the United States, which provide alerts to the movement of tracked assets
    • Commands can be sent to GPS tracking devices to update the reporting frequency of the device; reporting frequencies range from once per day to once every two minutes

    Dealership GPS Tracking Cost-Benefit Analysis

    BHPH Car Dealerships

    We understand that cash is king in a financing operation. The value of a financed asset is recouped over a series of payments that may extend as far out as 60 months. Business operators require the cash to purchase vehicles up-front and drive profit over the long-term. It is imperative therefore, that GPS offerings are cost-effective when compared to the likelihood of customer default.

    Fortunately GPS technology has become increasingly inexpensive as technology evolves. The cost of a GPS tracker pales in comparison to the loss incurred when a vehicle or trailer is lost. GPS suppliers understand the need for a low-cost but reliable solution. After all, if the GPS tracker doesn’t perform when you need it most, a dealership would have been better off never purchasing it in the first place.

    Customer Support and Expertise Creates Value for Dealership Owners

    A final and often overlooked hurdle is the ongoing oversight and maintenance of a fleet of financed assets. Dealership owners are often well versed in the day to day operations of running a dealership, but are less familiar with managing their fleet of GPS-tracked-assets.

    GPS trackers must be installed in each vehicle and the information retained for reference in the future event of non-payment. A great customer support team with experience in supporting BHPH customers can share best practices to make managing a fleet of GPS devices a painless endeavour: help with install, remediate any technology issues, and work with business partners to take the appropriate actions.

    The Shortcomings of Low-Cost GPS Tracking for Car Dealerships

    While many providers like Spireon GoldStar, Advantage GPS, LoneStar Tracking, Imetrick, and GeoTab offer GPS tracking solutions at appealing prices, these can often come with significant limitations. Low-cost options frequently utilize outdated hardware prone to failure and software platforms that lack crucial functionalities such as the ability to track historical data, manage large fleets, or provide user-friendly interfaces. Compounding the failure of their technology, the Customer Experience at many of the providers is poor at best.

    Bait and Switch Pricing on GPS Tracking For Car Dealerships

    Many providers lure customers in with a low price that does not reflect the true cost of service. Pricing for the functionality customers need is often only accessible through additional fees that are layered on top of the original price. May customers also see prices increasing without any additional value; service becomes less affordable as hardware and service pricing increases over time.

    Low Cost GPS Solutions Often Leads to Poor Customer Service

    Many GPS providers service their customers through call centers or customer support email directories. Response times from the customer service queues are often too slow to meet the needs of their customers. As anyone who has had to repossess a vehicle will tell you, time is of the essence. Unreliable, incompetent, or slow response times fail to meet the needs of customers.

    More often than not, scorned customers report being blamed by their GPS provider for devices that have gone off-line. Low cost providers will blame poor installation, customer tampering, or device mismanagement to shift the blame from their poor product offering. Not only will service issues be explained away but any repair or battery replacement comes at a heavy cost to the customer.

    Cheap GPS Tracking Can Mean Unreliable Technology

    Many customer realize they get what they pay for too late. Low-cost providers often come with poor reliability in their service and platform. Devices frequently fail to report, service is interrupted by connectivity outages, and the platform is plagued with bugs. These issues will quickly render a GPS service useless, especially when coupled with poor customer service.

    Single-Solution GPS Offerings: Wired GPS Hardware

    Many low cost GPS providers reduce their cost by leveraging outdated hardware solutions that can be purchased for a low price. Aside from the aforementioned failure in these devices, they are not optimal for GPS tracking of financed assets. Many of these GPS trackers need to be wired to the vehicle for power. This means a dealership needs to wire the tracker directly to the vehicle.

    Not only is the installation a pain in your side, it often defeats the purpose of installing GPS tracking. If an end-customer has decided they no longer want to make payments on their leased vehicle or trailer, they know a GPS device is installed and they know exactly where to look for it. GPS devices wired to the vehicle are easily identifiable and removed.

    The Superiority of GPX Intelligence - Advanced GPS Tracking for Car Dealerships

    GPX Intelligence distinguishes itself from the competition by offering not just products, but comprehensive solutions tailored to the specific needs of auto dealerships and BHPH operators.

    Unmatched Customer Service

    Each client of GPX Intelligence benefits from a dedicated Customer Success Manager (CSM). This direct connection ensures that every dealership receives tailored support promptly. The CSMs are not only experts in GPS technology but also specialize in the automotive dealership and BHPH sectors, providing valuable insights and proactive service to maximize the return on investment from the GPS tracking systems.

    Our inventory management practices have been tailored to meet the needs of our dealerships. We deliver hardware when and where you need it, charging you for our service only when you are using it. We prioritize customer satisfaction above all else, offering direct support from knowledgeable experts who are dedicated to resolving any issues you may encounter quickly and efficiently.

    Advanced GPS Hardware for Car Dealerships

    GPX has scoured the face of the planet – literally – for the best hardware to meet the needs of our BHPH customers. GPX partners with top global hardware providers to identify robust and reliable devices that have a battery life of up to 10 years. Each device has been equipped with GPX’s proprietary firmware to ensure optimal performance in the field; there is no sacrifice made when it comes to performance, durability, and reliability.

    These devices are designed to resist tampering and disabling attempts, crucial for maintaining continuous service. While wired devices can be easily removed, our battery powered devices can be placed within a vehicle or trailer so that it is not easily discovered and removed. 

    The longevity of these devices, with battery lives extending up to 10 years, ensures that dealerships can depend on their continuous operation without frequent replacements or upgrades. If a device does fail or battery needs to be replaced, we stand behind our product.

    Simple, Easy to Use Tracking Platform for Car Dealerships and Lenders

    GPX Intelligence has developed a software platform that stands out for its intuitive design and comprehensive features. It allows users to:

    • Easily rename and organize devices for better asset management.
    • Create geofences to alert on vehicles entering or exiting predefined areas, enhancing security and operational control.
    • Access historical location data for up to 90 days, crucial for tracking patterns and understanding asset usage.
    • Modify device reporting frequency in real-time to adapt to different operational needs, such as increasing updates during repossession actions.

    The GPS platform is designed with user-friendliness in mind, providing an intuitive interface that makes it easy for you and your team to navigate and utilize all of our powerful tools and functionalities. 

    Aggressive Pricing on GPS Solutions for BHPH & Car Dealerships

    GPX understands the importance of a cost-effective GPS service to complement its customers BHPH pricing models and business needs. We offer competitive pricing plans that provide excellent value for the features and benefits you receive. 

    GPX is not a low cost provider; we pride ourselves on service and reliability. Any savings you may obtain from a low-cost provider at purchase will be quickly eradicated when the device fails during a critical repossession. At GPX you’ll get the most bang for your buck with GPX with a pricing structure that is competitive with other market offers.

    Leveraging GPS Technology for Reduced Car Dealership Risk and Better Business Outcomes

    GPS tracking technology is pivotal not only for asset management but also for enhancing overall business operations. It enables dealerships to offer more competitive and accessible financing options by mitigating the risks associated with loan defaults and asset recovery. Additionally, the insights gained from GPS tracking data can help dealerships optimize their operations, from inventory management to customer service, ultimately leading to improved profitability and customer satisfaction.

    In the high-stakes environment of auto sales and financing, choosing a reliable GPS tracking provider is more crucial than ever. GPX Intelligence stands out as a leader in the field, offering advanced technology and personalized service that empower dealerships to manage risks and expand their financing options confidently. With GPX, dealerships are not just purchasing a product but investing in a partnership that drives growth and enhances operational efficiency.

    For automotive dealerships looking to navigate the complexities of today’s market, embracing the advanced solutions provided by GPX Intelligence is a strategic move towards future-proofing their business and achieving sustained success.