GPS Makes High-Risk Car Loans Safer for Dealerships

(My Original Blog Post: http://ping.fm/gY5AU)
When you hear of a car dealership advertising “no credit checks” or “no one is turned down”, you can bet that the dealership is appealing to high risk customers. Many of these customers are unemployed, but require a car to secure a job. While offering car loans to high risk customers may seem somewhat foolish, though GPS tracking technology can now make this process a whole lot easier for car dealerships.

The Wall Street Journal recently reported on a woman  from Illinois whose Buick had been giving her GPS-based late payment warnings for days. Red and yellow flashing lights informed the woman that her car payment was late. She ignored these warnings until she  heard the last chance warning -- an incessant beeping that told her to make her car payment that day or the car would be disabled.



Some car owners who would not qualify for any purchase without a high risk loan feel that the trade off of having a GPS tracking device on their vehicle is fair: they are able to purchase a car but if they don’t pay, at some point the car will not start. Dealers who have installed the devices say they now have a way of encouraging on-time payments. These GPS devices also provide an easy way to locate the vehicle if necessary.

Car dealers benefit from better cash flow and, in turn, are able to offer better cars to their customers. Most car dealers don’t feel that the GPS tracking on the cars is a danger to the customer as it cannot switch the car off while it is running, and it gives ample warnings before disabling the car.

Remote disabling and tracking of automobiles is well worth the investment for car dealerships as it will increase sales, dramatically reduce late payments, help recover stolen vehicles, and serve the consumer better.  Not everyone buying a car from the "buy-here-pay-here" market is a deadbeat. Some just need a helping hand to get back on their feet, and this includes reliable transportation. The installation of a GPS tracking device allows dealerships to give those in need a helping hand.