National Alliance of Buy Here, Pay Here Dealers Study
In today’s world, is it possible to have the best of both worlds? Can a business offer their customers robust innovative solutions at a low price without diminishing their bottom line? Believe it or not, companies can. With so many businesses only looking out for No. 1, it’s hard to find a company that has its customer’s best interest at heart. However, businesses that want to remain competitive and build a loyal lifelong customer base cannot ignore the needs of their customers.
New advances in GPS tracking technology and collateral management systems (CMS), have given dealers an opportunity to improve their bottom line, while at the same time improve credit-challenged customer behavior. In other words, these systems are giving companies the best of both worlds. A recent survey conducted by the National Alliance of Buy Here, Pay Here Dealers (NABD) discussed the best practices of payment devices. In part one, two and three of this series we discussed the five best practices which include implementation, experience and perceptions, disclosure, disabling and GPS technology difference, and survey conclusions. Now, let’s take a look at the benefits of payment devices for dealers and customers:
Buy-Here Pay-Here Dealers:
- Reduce collection costs
- Reduce delinquencies
- Improve customer behavior
- Real-time visibility into the location of vehicles
- Increase customer base
- Greater flexibility in granting loans.
- Improved credit score
- Increased approval rate
- Improved on-time payment patterns
- Increased communication with dealers
According to the survey, 84 percent of respondents indicated that payment devices achieved all of the benefits listed above, while 99 percent claimed that they would recommend the use of these devices to other dealers. In addition, 79 percent of respondents said that they plan on installing these devices on all of their vehicles.