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 significant challenge for BHPH dealerships is ensuring consistent, on-time payments. GPS tracking can create a sense of customer accountability by reminding them of their vehicle payment. This subtle awareness often motivates customers to prioritize their payments, knowing the dealership has proactive measures.

2. Reducing Delinquencies and Defaults

When customers know their vehicle is being tracked, the likelihood of missing payments often 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 and protects the dealership’s assets while maintaining positive customer relations.

3. Simplifying Vehicle Recovery Processes

In unfortunate situations where payment issues escalate to repossession, having a GPS ensures 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 a financial hit and a manageable business adjustment.

4. Building Trust with Transparency

While GPS tracking is an invaluable tool for dealerships, it’s essential to use it in a way that maintains trust. BHPH dealers are disclosing the GPS installed in the vehicle and have found success in being transparent with customers about using GPS systems. This openness can reassure customers that the dealership’s primary goal is asset protection, stolen vehicle recovery, and not surveillance, which promotes trust and encourages responsible behavior.

5. Integrating GPS System with other Software Platforms

Modern GPS systems are integrated with many other software platforms, such as Dealership Management Systems (DMS) and Payment Processing companies, to enhance compliance, efficiency, cash flow, customer service experience, etc.

Those integrations allow the dealership to automate many processes and support their customers 24/7/365.

Conclusion

Integrating GPS tracking into BHPH dealership operations is more than just a safeguard—it’s a strategy for enhancing customer accountability and boosting payment compliance. GPS systems prove their value beyond simple asset tracking by fostering responsible payment behavior, simplifying the recovery process, and improving communication. 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