Small Percentage, but BIG ImpactAs a dealer, you might call these great odds and go ahead with approving subprime buyers. We agree that this all make sense. But, let’s dig a little deeper. According to the report, between January and November 2015, 5.8 million loans were originated to consumers with a credit score below 620 and add up to a whopping $104.2 billion balance.If that 2.06% of subprime buyers that are already severely delinquent completely stop paying, you’re looking at a loss of $2,142,400,000. Yes, that’s over $2 Billion.While this massive amount certainly wouldn’t be taken on by a single dealership, it goes to show that losses, even on a small percentage of subprime buyers, can really add up. Especially for BHPH dealers! So what’s a dealer to do?
Bridge the $2B gap with GPS TrackingSure, 97.94% of subprime buyers will make good on their auto loans. They may have had an unexpected medical expense derail their perfect credit, or perhaps, they were laid off from a great paying job. Even a number those who aren’t great at managing their money make paying for their vehicle a priority so they can drive their kids to school and get to work.The solution is protecting your assets. Yes, approve subprime buyers. Yes, trust that 97.94% of them will make every last payment on time. Just don’t put your dealership at risk. A GPS vehicle tracking solution is a great way to protect your bottom line by bridging the 2.06% gap.
7 Quick Things to look for in GPS TrackingOf course, don’t go with just any GPS tracking provider. Here are 7 quick things to look for:
- A trusted, proven provider with years of history and innovation under their belt.
- Rigorous privacy controls that keep your customer data safe and you in compliance.
- Powerful software that allows you to easily track and locate vehicles for recovery.
- An intuitive user interface that lets you to track, manage and get on with your day.
- A provider that listens to its dealers, adding new features according to their needs.
- Reports and alerts that can be easily customized to fit how you run your dealership.
- A national network of GPS experts who can install at your location in 24-48 hours.