Navigating the world of auto financing can sometimes feel complex, especially when you encounter terms like GPS tracking. We believe in complete transparency, and this page is designed to explain how and why GPS tracking technology is sometimes used in connection with vehicle financing. For many buyers, particularly those working to build or rebuild their credit, these systems are a key component that allows lenders to offer financing opportunities that might not otherwise be available. By providing an added layer of security for the vehicle asset, GPS technology helps mitigate risk for the finance company. This, in turn, broadens access to reliable transportation for more members of our community. Our goal is to empower you with clear information, so you understand every aspect of your financing agreement and can drive away with confidence in your new vehicle and your financial decisions.
Payment Reminder (optional)
Parking Behavior Report
Accident Notification
Tow Alert
Impound Lots Monitor
Mileage Tracking
Special Relays for Faster Installation
Backup Battery
Accident Notification
Tow Alert
Impound Lots Monitor
Mileage Tracking
OBD Installation (optional)
Backup Battery
Cost Effective Device
Flexible Tracking Intervals
3 Year Battery Life
Our commitment is to find a path to vehicle ownership that works for your unique situation. The use of advanced automotive tracking technology is one of the tools that enables us to partner with a diverse range of customers. It serves as a form of collateral protection, helping to keep financing accessible and manageable. We are dedicated to providing clear, upfront information about all our processes. You can learn more about our dealership's philosophy on our about us page.
A Deeper Dive into GPS Tracking for Financed Vehicles
When a dealership provides in-house financing, often known as Buy Here Pay Here (BHPH), they are taking on the role of the bank. This allows them to work with individuals who may have been turned down by traditional lenders due to their credit history. To manage the associated risk, many dealerships and auto finance companies utilize GPS tracking systems. These devices provide a way to secure the financed asset—the vehicle—which is crucial for the lender's ability to offer subprime auto loans. Understanding this technology is the first step toward appreciating how it can be a bridge to getting you behind the wheel of a quality used car.
The technology itself consists of a small device installed discreetly in the vehicle. This device uses the Global Positioning System (GPS) to determine the vehicle's location and a cellular connection to transmit that data. This is not unlike the technology found in your smartphone. For the lender, this information is invaluable in the event of a loan default, as it significantly aids in the vehicle recovery process. However, the benefits are not entirely one-sided. For you, the vehicle owner, this same technology can be a powerful tool for theft recovery, providing peace of mind that your investment is protected.
Key Features and How They Work
Modern automotive GPS tracking solutions come with a variety of features designed to protect the asset and assist both the lender and the borrower. It is important to know that the use of these devices and their features is always disclosed in your financing agreement. We encourage every customer to review the documents thoroughly and ask any questions before signing. You can find more information about what to bring and how our process works on our how it works page.
- Real-Time Location Tracking: The primary function is to provide the vehicle's precise location on demand. This is essential for asset recovery if a loan goes into severe default and repossession becomes necessary.
- Starter Interrupt Technology: A sensitive but important feature is the starter interrupt or starter disable function. This technology allows the lender to remotely prevent a vehicle's engine from starting. It is critical to understand that this system cannot and does not shut off a vehicle that is already in motion. It only prevents it from being started. This is typically used as a last resort in cases of prolonged payment delinquency, as outlined in the terms of the loan contract.
- Payment Reminders: Many devices can be programmed to provide in-vehicle alerts, such as a simple chime or beep, as a payment due date approaches. This serves as a helpful, non-intrusive reminder to help you stay on track with your payments and maintain a positive payment history.
- Geofencing Alerts: Lenders can set up virtual boundaries, or "geofences," around specific locations. For example, an alert can be triggered if a vehicle enters an impound lot or is taken to a shipping port. This allows the finance company to act quickly to protect their collateral.
The Benefits for You, the Car Buyer
While the primary purpose of a GPS device is to protect the lender's asset, several direct and indirect benefits extend to you as the buyer. Understanding these advantages provides a more complete picture of why this technology is a standard part of the subprime auto finance industry.
The most significant benefit is access to financing. Many people with challenged credit find it difficult to get approved for an auto loan through banks or credit unions. By using GPS tracking for dealership financing, we can mitigate our risk and therefore extend financing opportunities to a broader spectrum of applicants. It opens the door for you to purchase a reliable vehicle, which is often essential for getting to work, taking care of your family, and improving your overall quality of life. If you are ready to see what options might be available for you, we invite you to get pre-approved through our secure online form.
Another major advantage is vehicle security. Car theft is an unfortunate reality, but with a GPS tracking device installed, the chances of recovering a stolen vehicle increase dramatically. The real-time location data can be provided to law enforcement to help them quickly locate and retrieve your car. This feature provides invaluable peace of mind, knowing that your asset is protected from theft around the clock. This enhanced security can sometimes even lead to lower insurance premiums, though you should always check with your individual insurance provider.
Our Commitment to Transparency
We believe an informed customer is a satisfied customer. The presence and function of any GPS tracking device will be fully disclosed and explained to you during the financing process. It will be detailed in your loan agreement, and our finance team is here to answer any questions you may have. We operate in full compliance with all state and federal regulations governing the use of these devices. Your privacy is important to us, and the data collected is used strictly for the purposes of servicing the loan and protecting the asset as outlined in our privacy policy. Should you have any questions before, during, or after your purchase, please do not hesitate to contact us.
Ultimately, auto finance GPS tracking is a tool that facilitates a partnership between you and our dealership. It enables us to say "yes" more often, helping hard-working people in our community secure the transportation they need. By making your payments on time, you are not only on your way to owning your vehicle outright but also actively rebuilding your credit history, which can open up even more financial opportunities in the future.
Frequently Asked Questions
Why is a GPS tracking device used for auto financing?
GPS tracking devices are used by auto lenders, especially in Buy Here Pay Here or subprime financing situations, to mitigate risk. The vehicle serves as collateral for the loan. The GPS device allows the lender to locate the vehicle in the event of a loan default, which is necessary for asset recovery. This added security enables lenders to provide financing options to individuals with past credit challenges who might not qualify for a traditional bank loan.
Can the starter interrupt feature disable my car while I am driving?
No, absolutely not. Starter interrupt technology is designed as a safety-first system. It can only prevent the vehicle's engine from starting. It cannot and will not shut off a vehicle that is already in motion. This feature is typically only used as a measure of last resort in cases of serious loan delinquency, according to the terms specified in your financing agreement.
Is the use of a GPS device disclosed to me before I buy the car?
Yes. The use of a GPS tracking device, including all of its capabilities like location tracking and starter interrupt, is required to be fully disclosed to the buyer before the sale is finalized. This information will be clearly stated in the financing contract and other relevant documents that you will sign. We believe in complete transparency and encourage you to ask any questions you have about it.
What information does the GPS device collect?
The primary information collected by the device is the vehicle's geographic location. Some advanced systems may also collect data such as vehicle speed, hard braking or acceleration events, and diagnostic information. The data collected and its use are governed by your financing agreement and our privacy policy. The main purpose is always for loan servicing and asset protection.
Will the GPS tracker be removed after my loan is paid off?
Yes. Once your auto loan is paid in full and you have received the title to your vehicle, the GPS tracking device is no longer needed. You can schedule an appointment with our service department to have the device professionally deactivated or removed from your vehicle. This process is straightforward and completes our financing partnership with you.
