Finally, in part three of our automotive recovery series, we will talk about powerful tools you can use to protect your assets.
The use of GPS and the wealth of vehicle data it provides, should be a paramount tool in the repo toolbox. Progressive GPS providers such as Advantage Automotive Analytics provides finance companies with high-level and vehicle-specific, granular oversight of their automotive finance portfolio. Whether it’s to stave off a repo, more easily locate a vehicle or skip, or use predictive analytics to make future funding decisions, GPS is critical.
If a consumer, now working from home, has a vehicle towed to an impound lot, he or she will be far less likely to go through the steps to notify the finance company. With geofencing and impound lot notifications, finance professionals can protect portfolio performance by mitigating the high cost of towing and impound lot fees with early action.
The use of wireless GPS devices assists dealers with reducing their upfront cash outlays by eliminating installation costs and giving them greater control of their own cashflow. GPS also offers features such as audible payment reminders that are designed to remind consumers make timely payments. Payment reminders have become a dealer’s go-to tool to get a conversation going with their clients and improve payment recency. Many finance professionals employ starter-interrupt devices as well. It’s important to note that state laws vary as to this feature, and dealers must be aware laws and regulations regarding starter-interrupt technology.
While GPS is one of the most important tools subprime financiers need, they must be accompanied by a good collectors, supported by well-informed, hands-on collection managers. Adding new managers or new collectors to a team can be costly without plenty of training and adequate oversight and accountability.
So as a possible “avalanche” of repos approaches, there will be those finance professionals who may be buried under the onerous weight of losses, and those whose have their muscles toned and skies waxed and are ready to ride the wave!
