Five Best Practices for GPS Tracking and Payment Devices – Part One

National Alliance of Buy Here, Pay Here Dealers Study

Buy Here, Pay Here Dealers

While there is no wrong or right way to do business, there is the best way. For Buy-Here Pay-Here dealers there is no better way to protect a dealer’s vehicle assets than by implementing a GPS tracking device or what we like to call in the biz, a collateral management system (CMS).

Recently, the National Alliance of Buy Here, Pay Here Dealers (NABD) conducted a study on payment devices best practices. The study, which included 164 respondents from 37 states covering 180,000 units, only further solidified what industry players already knew –that devices are a way to improve a company’s bottom line, protect vehicle assets and help borrowers pay their loans on time. 

The NABD survey covered industry best practices in five different areas including: implementation, experience and perceptions, disclosure, disabling and GPS technology difference, and survey conclusions. Let’s take a deeper look into what they discovered.


Oftentimes, dealers who equip their vehicles with payment devices are concerned that customers will refuse to have a device installed on their vehicle. However, the survey found that only one percent of respondents objected to the installation of the device. One of the most common benefits of payment devices is the dealer’s ability to manage a large portfolio of borrowers. In fact, the survey stated that 91 percent of respondents have faith that their collectors can handle a large number of accounts when payment devices are being used to track borrowers. Ultimately, larger portfolios and more efficient employees equal an increase in cash flow.

Next, the survey asked BHPH dealers to explain how they utilized payment devices after they were installed in a borrower’s vehicle –as payment devices can be used in several different ways. Fourteen percent of respondents track or disable the vehicle immediately after a customer misses a payment; 30 percent have a short grace period before they disable the vehicle; 54 percent use discretion before making a decision; and one percent use the device as a threat.

Stay tuned to part two in this series in which we’ll discuss the next four best practices for payment devices.

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