Auto GPS

GPS solutions can do a whole lot more than simply track and locate vehicles, thanks to technology integrations. GPS solutions that are integrated with other operational and business critical solutions can help you gather critical business data, communicate with customers, manage payments and optimize your cash flow. When you’re deciding on a GPS-solutions provider, you’ll want to look for one that integrates with these four technologies.

Dealer Management System

A dealer management system, or loan management system is one of the most important systems that car dealers and auto finance companies use on a daily basis. Keeping track of vehicle inventory and details, processing sales and financing, to managing payments and collection efforts, the DMS or LMS keeps your business running. When your GPS provider is integrated into your DMS or LMS system, you’ll be able to perform many of the features of your GPS, directly within your management system. From account creation to device setup. Preforming locates, sending payment reminders, and running reports can all be done directly in the DMS/LMS, without needing to juggle two systems.

LTE-M Network

A 5G-compatible LTE-M network is ideal for tracking vehicles in real time as they travel between cellular towers. LTE-M networks are reliable, yet cost-effective. They are designed specifically for the Internet of Things (IoT) and allow compact devices to consume less power with both high efficiency and accuracy. This allows even battery-powered GPS devices to stay in the field longer.

Cloud Location over Cellular (C-Loc) technology

GPS has revolutionized the way dealers track and manage their assets. However, everyone who uses GPS tracking devices know that even GPS has its limits. For example, a GPS fix is often difficult when the mobile asset is  in a parking garage or building. That’s where C-LoC comes in. It leverages 4G and 5G networks (instead of GPS) to obtain a  location information in real time. With C-LoC integrated into a GPS tracking device, you get dual-location technology to provide location data more often. The cloud-based technology helps conserve energy and heighten security for customer data.

Flexible Payment Platforms

Customers want flexibility and payment platforms that work with them and their lifestyles. With a flexible payment platform connected to your GPS solution, you can provide your customers with maximum choice, ease and flexibility. With a text-to-pay app, you can quickly send customers payment reminders, and they can pay their bill in a single click. No need to run to the bank for checks, pay fees at the ATM or a cash-loan store or load a pre-paid debit card. A payment-processing platform that partners with thousands of retailers nationwide enables you to accept cash 24/7 without risk. With a flexible payment platform, your customers can split their payments between their bank account, cash and credit. They can use Apple or Google Pay. Instead of forcing customers to fit a narrow payment plan, you adapt to meet them where they’re at with their finances.

PassTime’s Technology Integrations

PassTime’s technology integrations enhance the value of our GPS solutions. For more than 25 years, we’ve been a leader in innovation. Our technology integrations continue to help build a provider network, allowing our customers to save time and money through efficient operations. Here are a few of the technologies we’re proud to partner with.


PassTime has integration partnerships with many of the industry’s top dealer management/loan management systems for buy-here-pay-here dealers, auto finance companies, and independent and franchise dealerships. By providing robust PassTime Web Service solutions, DMS/LMS providers have a technical framework ready to build against, making additional integrations nearly seamless. Contact us for a list of current DMS/LMS partners.

masterQueue data-management system

masterQueue’s data-management system automates and simplifies the skip-tracing and debt-collection process. masterQueue gives PassTime customers unprecedented data and analysis to make smart, informed business decisions. You can dedicate your time and resources only to those customers you need to focus on, the ones financial institutions have lost touch with or who are late on their payments. You can streamline your operations and improve efficiency. You can improve your loan-portfolio performance and your cash flow. It’s all thanks to masterQueue and PassTime.

AT&T LTE-M network

PassTime uses AT&T’s LTE-M network for its GPS devices because of its extensive, reliable, cost-effective coverage.. The scalability of AT&T’s network allows our customers to connect even more devices, locally or over a wide geography.

PolteTM C-LoC technology

PassTime recently launched Beyond GPSTM location technology powered by Polte C-LoC, which is exclusively available on Encore, PassTime’s revolutionary, battery-powered, ultra-compact GPS solution that cuts installation time to seconds. Beyond GPS now comes standard on all new shipments and existing in-field Encore devices have been upgraded with Polte C-LoC technology as well.

BlytzPay text-to-pay app

PassTime’s BlytzPay partnership helps dealers communicate with customers via mobile, text payment reminders and gives those same customers maximum payment flexibility. Customers can split their payment method multiple ways and even pay cash—all via their mobile device 24/7. No need to go to a brick-and-mortar location or spend time on the phone with a customer service representative. Just easy, fast and secure payment processing.

PayNearMe payment processing platform

PassTime’s strategic partnership with PayNearMe provides PassTime customers with an innovative, all-in-one payment-processing platform that works for in-person payments as well as those made online. Leveraging PayNearMe’s network of 31,000 retail partners, including 7-Eleven, Walmart and CVS, PassTime customers now have the option of accepting in-person payments without the hassle or risk of cash. Plus, this platform integrates with digital payments like Apple Pay and Google Pay as well as traditional banking payments from debit and credit cards as well as ACH transfers. The PayNearMe platform offers PassTime customers ultimate flexibility in accepting and managing payments.


At PassTime, we never stop innovating. We started out as a game-changer in the industry, and we continue to be, thanks, in part, to our strategic-technology partnerships.

Think you’re ready for a GPS solutions provider on the cutting edge of technology? Connect with us.

You’ve probably heard about how the Internet of Things (IoT) is transforming everything from healthcare to transportation. The IoT revolution is already here and might, in fact, be powering your 5G-enabled GPS vehicle tracker. Here’s why you should look for a GPS tracker with a 5G-compatible, LTE Category M1 network.

Technology Longevity

 A 5G-compatible GPS device is increasing your technology’s longevity. It works  with existing 4G networks as well being forward compatible with 5G networks. This means you may not need to upgrade your GPS trackers once 5G networks are fully built out and operational, and your existing devices may last even longer. Your investment in a 5G-compatible, LTE Category M1 GPS device will provide you coverage for years to come.

It’s ideal for tracking assets in real time

Because a 5G-compatible, LTE Category M1 network supports cellular tower handoffs, it’s great for tracking vehicles and other mobile assets as they move around. These types of GPS trackers transfer low packets of data, such as vehicle location, across a wide geographic region, while saving on airtime costs and power drain. With a 5G-compatible GPS device, you can be confident in your vehicle-tracking data thanks to accurate device positioning.

Minimum power consumption and maximum efficiency

5G-compatible, LTE Category M1 GPS tracking devices are known for their low power consumption and high efficiency. This means your GPS devices can stay in the field longer, even when they are battery-powered. Additionally, these devices often include power-saving modes that can even further the longevity of the devices. . 5G-compatible, LTE Category M1 GPS tracking devices can transfer up to one megabit per second with fewer delays.

All PassTime devices are 5G compatible and on the LTE Category M1 network

Each of PassTime’s devices—Trax, Select GPS, Elite, InTouch and Encore—are 5G compatible. We use the Category M1 network to give you ultimate location accuracy at the fastest speeds using the only a fraction of the power of some devices. With this energy-saving network, we’re able to keep even battery-powered GPS devices in the field for up to four or more years. Our 5G-compatibility and LTE Category M1 network are just two reasons to work with us in addition to our exceptional customer service, 100% device reliability and commitment to compliance.


Want a 5G-compatible GPS tracking system for your dealership? Get in touch for a quote.

The global pandemic has changed life as we know it, for better and for worse depending on the change. You’re likely  seeing both positive and negative effects occur simultaneously at your Buy Here Pay Here, Franchise or Powersports dealership or Finance Company.

The pandemic led to an increase in used-car sales, as people reduced public transit consumption. Stimulus payments and tax refunds have contributed to the used-car buying boom. On the flip side, many states instituted moratoriums on repossessions. In 2020 alone, 22 million U.S. jobs were lost due to the pandemic, causing many people to fall behind on their car loans.

How is a dealership or finance company supposed to handle this macro-economic yo-yo? The answer might surprise you: vehicle asset-management systems. That’s right. Vehicle GPS tracking devices and the systems that go hand in hand with those devices can help you weather the ups and downs, especially when you and your business are pulled in opposite directions. Here are 7 reasons why you need a vehicle-tracking system.

Reason #1: Protect your assets

Your vehicles are more than assets; they represent your future business success. You need to know where each and every vehicle or mobile asset is in case you need to recover one. With a GPS vehicle-tracking system, you can spend less time and money tracking it down.

With PassTime GPS vehicle solutions, customers improved vehicle recoveries by 24% and reduced the time it takes to recover a vehicle by 6.4 fewer average days. What’s more, our vehicle-tracking systems helped customers recover 20% more in actual dollars as a percentage of the remaining principal.

Reason #2: Locate assets even if you can’t recover them

Moratoriums may have or continue to prevent you from recovering assets. But that doesn’t mean you should stop tracking your vehicle assets. Leveraging a car dealer management system with vehicle tracking enables you to know where your assets are, even if you can’t recover them. When the moratorium is lifted, you’ll be ready to swiftly and efficiently recover those vehicles.

PassTime’s OASIS online mobile app powers dozens of reports. For example, you can pull a vehicle’s current GPS location and its history to more accurately determine where it will be next. You can also use a remote starter-interrupt device to encourage that delinquent customer to contact your collections team and work out new repayment terms.

Reason #3: Customer communication

Clear, transparent and timely communication with your customers is key to building a mutually beneficial relationship. Payment reminders from your vehicle-management system are a simple and effective solution to help you maintain a positive cash flow. Starter-interrupt functions and vehicle-disable functions are other powerful tools to help you encourage customers to contact you about their overdue payment.

PassTime’s award-winning Elite solution, for example, provides your customers with automated payment reminders and allows you to remotely disable a vehicle if you need to. We’ve seen vehicle-tracking systems reduce delinquent payments, result in fewer loan defaults and improve consumer responsiveness.

Reason #4: Rework payment plans

If the pandemic has taught us anything, it’s flexibility. You need to be able to pivot and change course as needed. Car dealer asset-management systems give you that flexibility. You can work with a consumer to retool their payment plan with bridge or extension payments. You can focus on the consumers who need the most service.

PassTime’s proactive text/email alerts encourage your customers to contact you. As a result, less than 10 percent of customers require personal interaction from a collector, which means they can take on more loans without sacrificing customer service for the other 90 percent.

Reason #5: Solutions for every budget

Maybe you think tough times call for a tightened belt. Maybe you see a vehicle-management system as a nice-to-have and not a need-to-have. The reality is, you can’t afford not to have a GPS vehicle-tracking system in place. When you add up all the lost time and money from delayed repossessions and defaulted loans and compare that to the cost of a GPS vehicle-tracking system, you’ll see there’s no comparison. The GPS vehicle tracking system wins every time.

Encore, PassTime’s wire-free, battery-powered GPS device, is our most affordable, sleek and easy-to-install vehicle-tracking solution. It fits in the palm of your hand and can be discreetly installed any number of places in under one minute. Yes, you read that correctly. Under a minute. And with our simple activation process and flexible power modes, you’ll have the flexibility and reliability to track vehicles for the long haul and to ramp up for recovery mode when needed.

Reason #6: Improved cash flow

When you collect more payments at a lower cost, your loans perform better for longer. You have lower loss rates. You can service more accounts with a smaller collections staff. You can price your inventory more competitively to sell more vehicles. All of which increase your portfolio value.

PassTime’s GPS vehicle-tracking solutions and accompanying apps help you improve operations and make more informed decisions. Our proprietary systems empower you to create dozens of reports that give you insights on what actions to take next so you can be more efficient and more profitable.

Reason #7: A partner in problem-solving

GPS solutions solve some of your biggest business challenges. But the company providing those GPS solutions shouldn’t just be a vendor. Your vehicle GPS solutions provider should be your partner. They should help you innovate. They should help you increase your efficiency. They should help you improve your portfolio value.

And that’s just what PassTime does. We’re a leader in GPS innovation and compliance. We’ll help you establish best practices. We’ll connect you with our nationwide network of certified installers. We’ll help you not only track your assets, but also modify consumer behavior for the better. And with 24/7 support, we’ll help you and your business succeed, no matter the twists or turns that appear.

Want to mitigate economic uncertainty at your dealership or finance company? Contact us.

Asset and collections management can change the way Buy Here Pay Here (BHPH) dealers and auto- finance companies, credit unions and banks approach their cash flow, a key barometer of financial health, for the better. Collecting more on-time payments remains critical to positive cash flow. But focusing on the money coming in is just one part of the positive-cash-flow equation. The other? Keeping tabs on the money going out. Both situations require thoughtfulness and a proactive approach.

Wireless GPS tracking devices are helping BHPH dealers and auto-finance companies improve their cash flow by reducing logistics and installation costs exponentially. Here’s how.

Reduced logistics

How much time does it take to coordinate GPS device installation per car? There’s the research to find a certified and reputable installer. Then the time to negotiate pricing. Not to mention the time it takes to get your vehicle to and from the installer. Let’s estimate that the whole process takes four hours, start to finish. But if you’re managing inventory across locations or on a rolling basis, the time adds up fast. You probably need a single person devoted just to handling the logistics.

With a wire-free tracking device, the logistics drop dramatically. You provide the GPS solutions provider with a shipping address and once the wireless tracker arrives, anybody can install it in under a minute, without the need for a GPS installation company. You’ve reduced the workload from hours per vehicle to minutes, freeing up your team to focus on more important matters like collecting on-time payments or developing alternative payment options. Vehicle GPS device installation couldn’t be easier.

Reduced installation

Cutting costs is a tried-and-true tactic for positive cash flow. The key is to cut costs that can scale. Your goal is to make a difference of thousands of dollars or more. A wireless GPS device can make such a difference by cutting $50–100 in installation costs per vehicle. Let’s examine how these costs add up:



You can put your savings toward growing your inventory, investing in new data-driven technologies or hiring new collections staff. You’re able to do more on the actions that will help you sustain and grow your business because you’re spending less on GPS device installation.

PassTime’s wire-free GPS device

Encore helps you improve your cash flow by giving you the vehicle tracking you need in less time for less money. It’s the easiest way to manage your assets, complete faster, lower-cost repossessions and expand the number of loans offered.

This completely wireless, self-powered solution features an ultra-lightweight, compact design that’s about the size of a credit card and weighs less than two ounces. Flexible power modes give you the functionality you need while extending battery life.

PassTime’s end-to-end control gives us complete authority over our products from design through U.S.-based, 24/7 support for ultimate reliability.


Ready to cut the cord? Watch this 45-second video to learn more.

GPS technology never stops. Since its inception by the U.S. Department of Defense in 1973, civilians and businesses have found new applications for GPS, from clock synchronization to contact tracing, just-in-time grocery delivery to vehicle tracking. For Buy Here Pay Here (BHPH) dealers and finance companies, reliable vehicle tracking can mean the difference between profit and risk.

Out with the Old

Most vehicle GPS solutions take time and a whole lot of wires—five or more—to install. Hardwiring a device to a car’s electrical system establishes a reliable power connection. But this type of installation takes more time and requires a certified installer. If you’re looking to install GPS devices at scale or in a short time frame, you’ll need an army of installers.

In with the Wireless

That’s why more and more BHPH dealers and finance companies are turning to wire-free, battery-powered devices that take less than a minute to install. The size of a credit card, these devices are sleek, self-contained and boast a long battery life. This new, easy-to-install tracking device has the potential to do for GPS what cell phones did for the telephone: freedom from wires, flexible functionality and go-anywhere technology that last up to four or more years.

Discover PassTime’s Wireless GPS Tracker

Meet Encore, PassTime’s easiest wireless vehicle-tracking device to install and the culmination of two decades’ worth of innovation. Advanced lithium battery technology powers Encore for up to four years.  Flexible power modes maximize that battery life while meeting your vehicle tracking needs. Multiple power modes and profiles give you ultimate flexibility for endurance or recovery. Its stealthy appearance makes it more discreet. Our simplified two-step process makes activation quick and simple. These are some of the reasons why Encore from PassTime GPS is the easiest way to track a vehicle.

Learn more about how Encore is changing price perceptions here.

Value has a greater return than cost. In fact, true value sits at the intersection of your time, energy and money. What’s the secret to true value? Exceptional customer service. And it should come standard as part of your GPS tracking devices. But the question is, are you getting the best customer service with your vehicle GPS tracking devices?

Defining Exceptional

As much as words help us communicate, they remain open to interpretation. Especially when it comes to something as subjective as customer service. Not sure what separates good, great and exceptional customer service? Read all about it in these articles: here, here and here. But let’s talk specifics for GPS tracking devices. Here’s what exceptional customer service means to PassTime.

24/7/365 support

It’d be nice if surprises with GPS vehicle tracking only occurred during normal business hours. But the reality is, they rarely do. That’s why 24/7/365 live support, from one human to another, is so important. No filling out tickets. No twiddling your thumbs waiting to hear back. Just immediate help when you need it most from a U.S.-based customer service representative. Your GPS solutions provider should understand what’s at stake when things go wrong and share your sense of urgency. They should want to find solutions as quickly and accurately as you do.  Because they’re your partner. Day or night. Weekday or weekend. Holiday or every day. You want a vendor who is in this with you and providing top-notch service, especially when there’s a bump in the road.

Multi-tiered support structure

Your vehicle tracking vendor’s customer service support system should have multiple tiers: the account manager, client service manager and 24/7 call support. This structured team can not only help you trouble shoot when immediate issues arise but also help you plan ahead. This means you can transition from reactive to proactive. They can help you find solutions not just to acute problems but underlying ones as well. It’s all about going above and beyond to help you make the most of your business and your bottom line.

The PassTime difference

You deserve a vehicle GPS solutions provider who puts you, your business and your customers first. You deserve a GPS tracking device with live, U.S.-based support 24 hours a day. You deserve a team dedicated to solving your business challenges efficiently and effectively. In short, you deserve the best. And that’s what you get with PassTime. A value-add partner who delivers exceptional customer service at every turn.

What our customers say

Touting exceptional customer service isn’t the same as proving it. The best way to prove it? Hearing from our customers. Here’s what they have to say:

“Lendcare Captial Inc. finds PassTime’s one-to-one service outstanding. Calling our account manager always proves helpful. Exceptional support and assistance.” —Vickie B., Ontario, Canada

“We at Express Employment Professionals, Littleton have been working with PassTime since 2014. We thoroughly enjoy our business partnership with everybody on the team. Highly recommend this loyal, honest, passionate company.” —Kristen S., Littleton, Colorado

“Highest quality GPS in the market. Fantastic service and support.” —Tyler R.

“Great product, great customer service.” —Kelly R., Lithia, Florida


Ready to see what PassTime can do for you and your business? Contact us. Looking for more industry insights? Read more from our blog.


Throughout modern history, we’ve often associated technology with progress as a continuous but positive movement. But of course, there are two sides to the coin and in some cases, technology can create as many problems as it aims to solve. When it comes to protecting your vehicle assets, you need the most reliable and best GPS tracking system out there. Here’s why:

Location, location, location

Vehicle recovery success hinges on locating a vehicle quickly and accurately. It could be weeks, months or even years between the time the vehicle leaves the lot, or the loan is purchased and the time you need it locate it for recovery; which means your GPS vehicle tracking device needs to stand the test of time. You can’t risk your vehicle GPS tracking device failing at a time you need it most. A failed device could mean losing your initial investment and future revenue because you’ve lost the ability to locate the vehicle.

Testing 1, 2, 3

Your GPS tracking device should be manufactured by a company with rigorous testing standards. It’s not enough to spot check 20 percent of devices as they come off the line. Testing should be done 100 percent of the time. Testing each device leads to extremely low failure rates: under half a percent. Are you willing to risk your assets on a cheap, resold GPS tracking system or would you rather opt for one with stringent quality-control measures for better peace of mind?

Expert installation

You also don’t want to risk the success of your GPS vehicle-tracking system with shoddy installation. If you are using your own shop, makes sure the installers are properly trained and if you are hiring an installer, they should also be state-certified. GPS tracking devices can connect to five or more electrical wires in the vehicle. You need an installer who knows exactly what they’re doing to ensure your device functions properly miles down the road.

24-hour support

If something does go wrong, you have a question, or simply need assistance with your vehicle GPS tracking device, you want a partner who is there for you at any and every time of day or night. Your GPS tracking device vendor should be there for you when it’s most critical. Their top priority should be helping you recover your assets as efficiently and effectively as possible.

Get 99.6 percent device reliability with PassTime

How does PassTime pull off virtually 100 percent GPS device reliability? With a proprietary testing method and end-to-end control of our products. At PassTime, we rigorously test each device as it comes off the line to ensure that both the GPS and cellular module functions properly. We design, develop, manufacture, distribute and support each one of our devices. And we work with a national network of state-certified, trained installers who perform thorough vehicle inspections complete with VIN and odometer verification. And we’re here 24/7/365 to help you recover your assets and troubleshoot issues.

Are you ready for the best GPS vehicle tracking system in the market? Get a quote.

Technology in the subprime automotive finance market to assist in collections and repossessions has been widely adopted. First introduced decades ago, just about everyone in the industry is using GPS/collection technology to track assets, send payment reminders with the goal of improving both the collections process and the recovery process when needed.

GPS (Global Positioning System) is a commonly known term throughout the world.  In the subprime auto finance, a GPS device is installed in a vehicle with the consent of the consumer and is used to locate the vehicle in the event the consumer defaults on the loan and it is necessary to repossess that vehicle.

3 of the biggest impacts of GPS in auto collections are:

1. Low cost to implement.

The low (and ever dropping) cost has made utilizing GPS on higher risk loans common place.  The idea is that if a customer defaults on their loan, GPS can be used to locate the vehicle for a quicker repossession.  It is common knowledge that the quicker a vehicle can be recovered, the fewer miles will be on it, the better condition it will be in, and the cheaper it will be to recondition for resale. 

In addition to “standard” GPS, many solutions on the market today include additional tools to help with collections.  PassTime, a leading provider of GPS Solutions for over 25 years has been at the forefront of innovative solutions that address both collection and recovery needs of their customers. The goal of these collection tools is to keep the consumer making their payments throughout the life of the loan, thereby decreasing delinquency rates and making it easier to identify troubled accounts.  By improving the collection process, the BHPH dealer or finance company can benefit from improved cash flow, lower overhead, and widen its lending criteria. 

2. Consumers are calling the collectors. Not the other way around.

One of the biggest benefits to using GPS technology, and specifically the collection tools that often accompany GPS technology, is that it changes the dynamics of communication between the dealer/creditor and the consumer. As previously noted, without incentive to do so, a consumer may avoid communication with their creditor, especially if they have fallen behind in payments. With proper use of GPS technology and collection tools, the communication scenario is reversed, where the consumer initiates communication with the creditor. When this technology is used as a stipulation of financing and is properly disclosed and explained to the consumer, that consumer now has incentive to communicate with the creditor. If they do not properly communicate and they are late or behind on payments, their vehicle could be disabled. 

Because of this, the consumer makes the effort to make their payment on time. If they cannot make their payment, or may be late, they are the one calling the dealer or finance company, not the other way around.  As a result, instead of hundreds of outbound collection calls, collection staff can stay on the phone, taking payments.  The shift in communication makes collections easier and less confrontational.

3. Collectors can handle more accounts.

Another major benefit to using GPS technology with collection tools is that it allows each collection agent to handle more accounts, which can reduce overhead and resources for the business. As noted above, in a typical scenario without technology, collectors spend much of their time making phone calls to consumers, attempting to get in touch with them and to get them to pay.  When utilizing this technology, collectors can quickly identify which accounts need attention and which do not, allowing them to be more efficient in their efforts and take on more accounts. 

Look at it this way:

Ready to see how technology can impact your collections?

Click here to request a quote today!

For PassTime, compliance has always been an important part of our business.  From its early days to today, the company has worked diligently to educate national and local government regulators, consumer advocates, dealers, finance companies and consumers on the functionality and consumer benefits of GPS and Payment Assurance devices.

PassTime, an industry leader in GPS Tracking and Automated Technology Solutions, began marketing the first industry Payment Assurance technology in 1997.  At that time, 70-80% of the market was held by two payment assurance device companies, PassTime and On-Time.  Within a year, PassTime began working on the industry’s first Payment Assurance consumer disclosures, in late 1998.

As part of this commitment to compliance, and helping its customers stay informed about compliance, PassTime teamed with Hudson Cook, one of the nation’s most highly regarded law practices in the area of consumer financial services law, to create the first available training in payment assurance and GPS device compliance.

PassTime has a full time compliance officer and CFPB Service Provider documentation. While the CFPB has gone through many changes since its inception in 2011, it is clear that the Bureau has an expectation that supervised financial institutions have an effective process for managing the risks of service provider relationships.

PassTime strives to ensure corporate-wide compliance with new and emerging State, Federal Laws and Regulations.  IT compliance is also an integral part of PassTime’s implementation of best computing and management practices.

GPS Device Best Practices: The Do’s & Don’t’s 

The Do’s: 

  • Do have written policies and procedures for the use of the devices, including (but not limited to) the bullet points listed below.
  • Do fully disclose to the customer that the device is on the vehicle as a condition of financing, how the device works, and optional emergency procedures.
  • Do give written disclosure to the End User Consumer of a SID/GPS device being installed on the vehicle and used as a condition of the extension of credit under the RISC.
  • Do have written disclosures that include language outlining the fact that the device is installed on the vehicle, how it operates and will be used, and both the End User Consumer’s and finance company’s/dealer’s/device owner’s respective obligations related to the device.
  • Do have the consumer sign the disclosure.
  • Do track complaints and complaint resolution related to the devices.
  • Do use trained and/or certified in-house, third-party, or vendor supplied installers. 

The Don’t’s:

  • Don’t pass the cost of the devices, airtime or installation along to the consumer whose cars are to be equipped with the GPS or Payment Reminder devices associated to the RISC.
  • Don’t discriminate in any way who you require to have a device and who you don’t, as this may violate federal or state anti-discrimination laws.
  • Don’t disable a consumer’s vehicle without giving prior warning, if possible (prior warning is mandatory in California).
  • Don’t leave the vehicle disabled after a debtor makes an appropriate payment. Re-enable the vehicle as soon as possible.
  • Don’t use the GPS tracking functionality for any improper purpose.

Pre-Technology Era of Collections

BHPH dealers and subprime auto finance companies who have been around for awhile are all too familiar with the typical process of trying to collect weekly, bi weekly or monthly payments from their subprime customers.

When a payment due date approaches, collectors analyze the accounts they are responsible for to see who has paid and who has not, and then begin making phone calls.  Of course, these phone calls and attempts to communicate are often met with declined calls, disconnected numbers or other methods to avoid the collection agent.  In worse cases, consumers may have left town or moved without notifying the creditor.

Significant resources are often required on the part of the collection agent to attempt to track down and retrieve payment from consumers who were late.

Due to the significant amount of time and effort that each collector spent trying to track down late payments, the number of accounts they could manage at once was limited. Historically, the average number of accounts per collection agent was about 300.  Of course, that number varies widely depending upon business models, lending criteria, collection structure, etc. With the average number of 300 account per collector, naturally as the portfolio grew, so did the need for additional collection agent resources.

In addition to the overhead cost of the employees, cash flow is impacted. It doesn’t take an advanced degree to understand that late payments hinder cash flow for the dealership or finance company. While many are able to predict the percentage of payments that may come in late or not at all, cash flow for the business suffers.  

While the cash flow, overhead resources and effort on the staff are all enormous challenges for dealers and lenders in the subprime market, perhaps the biggest underlying challenge is communication. In this traditional scenario, the consumer is typically on the receiving end of communication attempts from the dealer or lender. The general response on the part of the consumer is to avoid that communication attempt altogether. The communication is usually one-sided, met with resistance, and widely ineffective.

Impact of GPS Technology on Collections

GPS has been around in the used car industry for decades. But, how exactly does the technology help with collections?

It works like this:

Without the use of technology, and specifically, collection tools, a collection agent who has 300 accounts, may on average have 90 to 100 of those accounts delinquent at a given time.  Depending on the situation, the collector may or may not have a good idea of which 90 consumers out of the 300 won’t make their payment. So, the collector spends his or her time calling most, or all of accounts to get payments in each payment cycle.

With the use of GPS technology and collection tools, the collector can quickly identify which of their 300 accounts may be a problem.  By looking at which accounts have not made a payment and have not called in, the collector now knows who to contact.  The collector can focus on the small percentage of consumers who haven’t paid or made contact, instead of the entire portfolio, or trying to guess which accounts to call. By needing to focus only on a small subsection of an account, collection agents can now handle a larger number of accounts overall, helping reduce overhead and the company grows. 

Ready to see how technology can impact your collections?

Click here to request a quote today!