The Importance of using GPS Tacking Devices on Your Subprime Automotive Loans and Automotive Credit Loans
Access to an automobile is crucial for everybody in California, even those with poor credit. This is the reason why the subprime auto loan market exists, to provide individuals with bad credit access to vehicles. If you are a subprime automotive lender, you can’t ever in good conscience say that the risk of lending cars to your esteemed customers is zero. The risk of offering loans to someone who may have the difficulty of maintaining their repayment schedule is very high and so you should take adequate measures to minimize it. Despite giving higher interest rates and less favorable terms in order to compensate for higher credit risk, you can as well utilize our car tracking technologies to track their cars in case you want to repossess it.
Auto loans for credit-challenged Americans has been booming and many finance companies, credit unions and auto dealers are using advanced technologies to track the location of borrowers’ vehicle in case they default in payments. The decision to use GPS car tracking devices may be part of the underwriting process and full disclosure is encouraged. Our GPS vehicle tracking devices offers a simple interface where the lenders and the credit unions can manage and repossess vehicle lent to poor credit customers, while maintaining the privacy of the customers.
Why Subprime Automotive Lenders and Credit Unions Should Use GPS Tracking
GPS car surveillance, allows a dealer to extend loans to low-income Americans, knowing that they can easily locate the car. Research shows that in California only, about 12.5% of used car dealers sold a vehicle at least twice due to the previous borrower’s inability to complete payments. With smart mobile apps, lenders now can now control their assets remotely and hence the borrower must stay current with their payments or risk losing access to their vehicle. Now, with the GPS car tracking devices used in about one-quarter of subprime auto loans in California only, the devices are shaping the dynamics of auto lending by making timely payments to avoid future consequences.
While some borrowers are just bad payers and need some coaching to pay, others need a more hands-on approach. Before handing off the keys of the car to the customer, one option GPS Tracking Devices offer is a starter interrupt device in the vehicle. So that if necessary, you can disable the vehicle. Many lenders are using these devices to disable a vehicle by preventing the starter motor from working. Our car tracking devices from www.gpsleaders.com will encourage delinquent borrowers to keep in contact with the lenders and enforce timely payments.
By using our asset tracking devices, lenders can automate payment reminders to help keep their customers on track. If they need to skip trace their customer they can set a geographical boundary around a specific area and receive an alert once the vehicle leaves such boundaries. This will lower the cost of following up with their customers by saving their company time and money aimlessly searching for the vehicle. The lender will be able to avoid loss of loan payment in addition to the cost of collections such as the labor used to recoup the debt owned. Research shows that some borrowers just may need help with making on-time payments, this is where this technology can be used to actively coach borrowers on time. GPS Leaders car tracking devices are embedded together with a piezo device so you can sound a buzzer for payment reminders to the borrower when a payment is either almost due, due or past due.
How Mitigating Risk Can Increase Your Profit vs. Loss Portfolio on Subprime Automotive Loans
Subprime Automotive and Buy Here Pay Here Auto Lending always been a high risk endeavor with up to 30% of the loans ending in repossession within an average transaction time of two years. With the increased demand in this market, dealership and lenders who offer subprime auto finance should be prepared for an increase in delinquencies, defaults and repossessions- all of which come with significant costs that cut into profitability. However, you can increase your profitability through the adoption of GPS tracking and collateral management system devices from www.gpsleaders.com which will help you increase your loan portfolio with less risk. You can be able to increase the number of cars that you credit out to poor credit individuals and at the same time minimize the risk associated. Your company will be able to meet its ultimate goal of making profit which is a good thing.
When you choose to fit all the vehicles you are lending out with a GPS car tracking devices, you will get a grip on your asset management. You will be able to keep track and monitor all the cars that are out with customers and at the same time be able to follow up with their payment schedule. The system has a wide range of enhanced asset management features such as automated payment remainders, geofencing and a remote starter enable/disable feature.
With GPS car tracking devices, your business will be able to shorten the time and eliminate the costs associated with vehicle recovery. Repossessing a vehicle from your customer is the last thing that any business professionals want to do, but sometimes it may be necessary to do so. Having a GPS car tracking device embedded within a vehicle will enable the management to locate and recover the vehicle in seconds. This means that the business will spend less money on collection labor, reconditioning and auctioning hence retaining higher value of the vehicle.
GPS tracking devices will help dealers in the subprime automobile finance, BHPH market to effortlessly and in real time locate and track their vehicles in case the customer defaults in paying their dues. GPS Leaders, the leading GPS car tracking provider in California, through its advanced car tracking technologies, are focused at providing the best services to the people who are new to the Buy Here Pay Here (BHPH) and those who are interested in expanding their loan portfolios, protect their assets and mitigate their risk. You can comfortably credit the car because you have confidence and tools needed to recover it rapidly.
GPS car tracking devices will help your company maximize the per-unit lending profits. The ultimate goal of any company is to maximize profit through increased sales and a reduction in the cost of operations. Due to the high default risk, it is common practice for lenders to install GPS tracking devices on auto purchased via subprime loans. This way, the lender will be able to reduce the costs associated by the recovery, late payment and car mishandling. This will increase per-unit returns from any vehicle sold out and eventually increase the overall profit of the company.
How GPS Tracking Helps Protect Subprime Automotive Loans Actively & Remotely
You will be able to customize and scale operations. The GPS car tracking system will integrate seamlessly with your existing loan management software and hence be able to scale all your company’s operations. Car dealer GPS tracker is the best way to protect your car against theft and other risks. You’ll receive comprehensive reports and hence be more effective in managing your company. GPS tracking can help offer you relevant information about payments deadlines and defaulted loans. You can use this information to reduce and eliminate hidden expenses that may be impacting to the company’s profit.
GPS car tracking system can as well help you recover vehicles in case of theft from your customer before the vehicle is completely paid for. Losing one of the company’s asset is completely detrimental to small and medium businesses. In case of car theft or car hijacking, the company can be able to detect if the car deviates from a specified location and hence report it to the relevant authorities. GPS solutions will notify the company support center via a message alert carrying the location details. It is easier recovering vehicles that are fitted with GPS Car tracking devices than manually recovering those that have no single recovery solution. The driver can also notify the management by sending an SOS. Most of our GPS systems have a panic button that someone can press and it will notify the authorities of the impending dangers immediately. As a matter of fact, this button doesn’t make any noise but it will set an alarm of the other side so that a rescue team can reach the location as promptly as possible.
You shouldn’t think of GPS tracker devices as an expense, they are investments that will make your business thrive in profits and reduce the chances of loss. Choose the most effective and the most affordable GPS car tracking devices and Collateral management devices from www.gpsleaders.com and scale your business. To help minimize the costs of operations and improve on profitability, invest on the best GPS car tracking devices.