How can lenders secure collateral and mitigate risks in high-risk loan scenarios?
To secure collateral and mitigate risks in high-risk loan scenarios, lenders need a robust solution that combines cutting-edge technology and comprehensive monitoring capabilities. Monitoring high-risk auto loans is where Advantage’s Evo Unlimited solution proves invaluable. Evo UL is a game-changer for auto lenders in today’s volatile economic climate.
Evo UL sets the industry standard with its state-of-the-art tracking system and real-time monitoring capabilities. By harnessing the power of advanced GPS technology, lenders gain unparalleled visibility into the location and status of collateral assets throughout the loan lifecycle.
According to a report from Cox Automotive, auto loan delinquency rates have climbed to their highest levels in over 15 years. “Severely delinquent” auto loans are those at least 60 days past due. The data from Cox Automotive shows that 1.89% of all auto loans were severely delinquent in January 2023 and at the highest rate since 2006.
However, the trend is even more pronounced among borrowers with lower credit scores. The research found that among subprime auto loans, 7.3% were severely delinquent.
This underscores the need for advanced tools that empower dealers and finance companies to protect their investments proactively. Evo UL addresses this challenge by equipping dealers with real-time information about the location and condition of their vehicles, enabling swift action in the event of missed payments or other issues.
Timely and effective tracking of vehicles can significantly reduce losses associated with defaults, leading to improved finance portfolio profitability. Evo UL can accurately locate and track vehicles, while our platform allows leveraging the data analytics generated by your portfolio’s collateral. The combination improves contract performance and enables more-informed collections and future funding decisions.
Beyond risk mitigation, Evo UL offers additional benefits for BHPH dealers. Its unlimited GPS connectivity allows dealers to comprehensively monitor their vehicles throughout the loan term and beyond, enhancing security measures. By ensuring the safety of their assets, dealers can extend more flexible financing options to their customers, fostering stronger customer relationships. Offering flexible financing options is widely accepted for expanding the customer base, increasing sales and revenue. Importantly, the dealer has the benefit of knowing upfront what his costs are for the duration of the finance contract.
Advantage’s Evo UL solution extends its utility beyond risk management. It can also provide dealers’ customers with connected car and stolen vehicle recovery services. The Pulse mobile app leverages that same Evo UL hardware to provide drivers with advanced tracking and location-finding capabilities. Evo UL assists drivers and law enforcement in promptly locating and recovering stolen vehicles.
Advantage’s Evo UL solution proves to be an invaluable asset for BHPH dealers and auto lenders aiming to safeguard their investments and provide customers with peace of mind. With its advanced features and reliable performance, Evo UL is an excellent choice for dealers looking to optimize their bottom line and establish a more secure and thriving business.
Learn more about Evo UL, stop by our Booth #616 today at the NIADA 2023 Accelerate Conference at the Wynn Las Vegas.