In the Subprime Auto Finance and Buy-Here-Pay-Here (BHPH) industry, it is essential to mitigate risk and protect your investment. With the right GPS tracking solution, BHPH dealerships can keep track of late accounts, mitigate risks, and reduce delinquency rates. However, selecting the right GPS provider is critical to your operations.

Here’s a guide to help you make the best choice when selecting a GPS partner for your BHPH operation.

1. Understand Your Dealership’s or Finance Company’s Needs Before exploring different GPS providers, it's essential first to identify the specific needs of your dealership. Consider factors such as:

• Compliance & Regulation in the States you operate in: SOME States have GPS legislation that operators must consider before choosing their GPS partner.
• Device Type: Would you use a wired or wireless device? Consider your Installation team's availability and capabilities.
• Alerts and Reports: What kind of data do you need? For example, impound lots monitoring, unauthorized use alerts, accident notifications, and mileage tracking.
• Integration with Existing Systems: Can the GPS integrate with your current DMS and payment processor?
• What would be the most suitable package for you? Would the system include starter interruptions, payment reminders, or location?
• Inventory Management needs—Are you a multi-location operation? If so, who needs the GPS to report and integrate with your inventory management software and reports? By clearly defining what your dealership requires from a GPS provider, you’ll be better equipped to evaluate which solutions will meet your needs.

2. Accuracy, Reliability & Reputation

A GPS tracking system is only as good as the data it provides. Inaccurate or delayed information can lead to operational inefficiencies and even costly mistakes, especially when locating a vehicle for repossession. Reliability and reputation are crucial factors to consider when selecting a GPS provider. A reliable GPS provider ensures that your business can:

• Rely on consistent and accurate location data
• Minimize downtime and disruptions
• Maintain customer satisfaction and trust
• Focus on growth and expansion rather than worrying about GPS service interruptions
• Able to triangulate different events with location and timestamp to create CBE (Critical Business Events) the dealership should concentrate on. When evaluating a GPS provider's reputation, consider the following:
• Proven record– consider the importance of experience and longevity in the market.
• Financial Stability & Transparency - Research the company's financial health, including revenue growth, number of employees, active subscribers, and stability.
• Investment in Innovation—Look for a partner who continuously invests in research and development, ensuring cutting-edge technology.
• Please ensure your partner has the proper certifications such as FCC, CE & ISO.
• Ask your potential GPS partners for referrals/recommendations so you can speak to them and hear firsthand feedback. By prioritizing accuracy, reliability, and reputation, you can ensure a successful partnership with your GPS provider and drive business growth with confidence.

3. Consider Ease of Use

Your GPS solution should be user-friendly and accessible to everyone on your team. Complicated interfaces or hard-to-navigate dashboards can result in wasted time and frustration. The goal is to choose a system that simplifies your processes, not complicates them. Features to look for in terms of ease of use include:

• A clean, intuitive user interface.
• Dashboards for easy access to relevant data.
• Simple daily reports to help you be in the know and identify exceptions quickly.
• It is compatible with mobile devices, allowing your team to monitor vehicles on the go.

4. Assess Customer Support and Service

Even with the best technology, issues can arise, and having reliable & accessible customer support is crucial. Before committing to a GPS partner, could you evaluate the quality of their customer service? Some key considerations include:

• Availability: Ensure they have live support available 24/7 in case of an emergency or critical issue.
• Channels: They must offer multiple support channels like phone, email, and live chat.
• Response Time: How quickly do they respond to inquiries and provide resolutions?
• Training: Do they offer unlimited training for your team?
• Bilingual support is always a plus. A GPS provider with excellent customer support can help minimize downtime and keep your operations running smoothly.

5. Examine Pricing and Long-Term Costs - ROI

• GPS systems for BHPH dealerships are a significant investment, so it’s essential to understand the pricing structure and any long-term costs associated with each provider. While the lowest price may seem attractive, it’s necessary to weigh the total value of the solution.
• True ROI calculation should include price, device reliability, and ability to reuse/recycle devices. When comparing costs, consider:
• High-quality devices—Investing in a high-quality GPS device can save you money in the long run by reducing downtime and providing accurate and reliable location.
• Unit health Dashboard—Detailed device health dashboards and real-time status updates allow collectors to make informed decisions and take immediate action.
• Refurbishment – Refurbishment service allows you to recycle and reuse devices, reducing waste and costs.
• What might seem cheap today will be expensive when a vehicle cannot be found.

6. Compliance, Security, and Data Protection

GPS tracking involves handling sensitive customer data, so compliance with legal regulations and data protection are top priorities. Ensure that your chosen GPS partner adheres to all relevant privacy laws, including:

• I'm offering you a GPS disclosure based on your business model, language, and State, letting customers know of GPS installed in their financed vehicles.
• Securely storing GPS data to prevent unauthorized access.
• Meeting the Safeguard Rules, Multi-Factor Authentication, and Gramm-Leach-Biley Act Requirements.
• Utilizes robust cyber security methods.
• Please be sure to comply with industry standards & regulations.
• Offer compliance tools for different States or areas, such as Indian Reservations.
• Allow easy access to user audit reports and log-in.

By selecting a provider that prioritizes compliance & security, you can avoid potential legal risks and maintain your dealership’s reputation.

Final Thoughts

Selecting the right GPS partner for your BHPH dealership is a critical decision that will impact your operations, customer relationships, and overall profitability. By carefully evaluating your needs, comparing providers based on stability, device quality, data accuracy, ease of use, support, and pricing, and ensuring compliance with legal standards, you can find a GPS solution that will serve your business well for years.

Dikla Miller
Sales & Marketing
Ituran USA