For Buy Here Pay Here (BHPH) dealers, maintaining control over financed vehicles is essential for financial security. GPS tracking systems have become a vital tool in this space, not just for tracking vehicles, but also for fostering customer accountability and improving cash flow. Here’s why BHPH dealers should pay close attention to how GPS tracking can shape their operations and boost their bottom line.
1. Reinforcing Payment Responsibility
One of the significant challenges for BHPH dealerships is ensuring consistent, on-time payments. GPS tracking can create a sense of accountability for customers by reminding them of their vehicle payment. This subtle awareness often motivates customers to prioritize their payments, knowing the dealership has proactive measures in place.
2. Reducing Delinquencies and Defaults
When customers are aware that their vehicle is being tracked, the likelihood of missing payments decreases. GPS tracking systems can also be integrated with automated reminders or payment notices, enhancing communication and giving customers gentle nudges to keep their accounts up to date. This reduces delinquency rates, protects the dealership’s assets, and helps maintain positive customer relations.
3. Simplifying Vehicle Recovery Processes
In unfortunate situations where payment issues escalate to repossession, having a GPS system in place ensures that dealers can locate and recover vehicles efficiently. This reduces the time and resources spent on recovery, minimizing potential losses and disruptions to the dealership’s operations. Quick and successful recoveries can mean the difference between a financial hit and a manageable business adjustment.
4. Building Trust with Transparency
While GPS tracking is an invaluable tool for dealerships, it’s important to use it in a way that maintains trust. BHPH dealers who disclose the presence of GPS devices in vehicles have found success in being transparent with customers. This openness reassures customers that the dealership’s primary goal is asset protection and stolen vehicle recovery, not surveillance. This transparency promotes trust and encourages responsible behavior.
5. Integrating GPS Systems with Other Software Platforms
Modern GPS systems integrate with various software platforms such as Dealership Management Systems (DMS) and Payment Processing companies to enhance compliance, efficiency, cash flow, and customer service experiences. These integrations allow dealerships to automate many processes and provide customer support 24/7/365.
Conclusion
The integration of GPS tracking into BHPH dealership operations is more than just a safeguard—it’s a strategy for enhancing customer accountability and boosting payment compliance. By fostering responsible payment behavior, simplifying the recovery process, and improving communication, GPS systems prove their value beyond simple asset tracking. For dealers looking to optimize their financing model, investing in quality GPS solutions can be a game-changer in ensuring sustained success and profitability.
Efrat Bogoslavsky
VP Revenue & Service
Ituran USA