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

National Alliance of Buy Here, Pay Here Dealers Study

Buy Here, Pay Here Dealers

Humans are forgetful by nature it’s in our DNA. We can’t help it; it’s difficult to always be on in this unpredictable world. We forget anniversaries, we forget to pick up the dry cleaning and sometimes we even forget to pay our bills. But what if I told you there’s a surefire way to never forget your car payment? Would you believe me?

Today, Buy-here Pay-here (BHPH) dealers are helping customers remember to pay their subprime loans on time, while also helping to boost their credit score through the use of collateral management systems (CMS) and GPS tracking. A recent survey conducted by the National Alliance of Buy Here, Pay Here Dealers (NABD) on GPS tracking and payment device best practices, found that not only are customers benefiting from the use of these devices, but BHPH dealers are as well.

In part one and two of this series, we explored two best practices – implementation and dealer experience and perceptions – now let’s take a look at two more.


One of the most important things to do before you implement a device on a customer’s car is actually letting the customer know. Disclose to your customer what the device does and how it will be used, this will ensure a positive customer experience and protect you against any compliance regulations. According to survey results, 94 percent of survey respondents claimed that they use written disclosure forms. A few pieces of paper can go a long way.

Disablers vs. GPS Technology

Although GPS technology and disabler payment devices perform different tasks, they work better together. For BHPH dealers, GPS technology can help locate a vehicle for repossession or recovery purposes. In fact, 98 percent of survey respondents indicated that the use of GPS technology resulted in faster recoveries, while 80 percent believed that its use allowed them to increase their portfolio of customers.

As a result of using disabler payment devices, dealers experienced better communication from borrowers and improved customer repayment behaviors. The survey found that 91 percent of respondents believe the use of devices reduced their overall collection costs.

Stayed tuned to part four in this series in which we’ll discuss the final points on the five best practices of payment devices.

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