Proactive Risk Avoidance | Advantage GPS

Proactive Risk Avoidance

Transforming the Auto Industry Through Modern Analytics & Technology
Part 3:

Technology helps us work smarter. Over the years, some of the greatest minds in the auto tech industry joined forces with finance companies and BHPH dealers to develop solutions that lessen exposure to costly risks. Modern analytics arm finance professionals with access to high-risk indicators, in real time. This must-have information identifies important triggers and proactively sends notifications of high-risk events. Given the inventory shortages, record high used car values and the ongoing risks involved in financing subprime and deep subprime deals, integrating modern analytics is smart.

Today’s topic: Proactive Risk Avoidance

In this segment, I am going to share three examples of how Advantage’s advanced technology proactively communicates high-risk situations so you can take action quickly to mitigate losses:

  1. Impounded vehicles
  2. Low battery voltage
  3. Abandoned vehicles

1. The Cost of Impounds
Back in 2019, we shared some data on how impounds storage fees cost consumers, automotive retailers, and finance companies more than $1.1 billion annually — a whopping $3 million each day. Other data even suggest that nearly 80,000 vehicles are impounded daily with approximately 10% sitting on lots for 30+ days. Towing and impound lot fees cost many dealers thousands of dollars annually. This is where technology can play a key role in supporting your business.

The Advantage platform is smart enough to let you know when a vehicle enters an impound yard. Our system has mapped out impound lots all around the country. Over the years, Advantage has identified thousands of impounded vehicles. A majority occurred between the months of May and August. Because our technology lets our clients know immediately, we were able to save them thousands of dollars.

2. Car Battery Lifespan

Like vehicles, all car batteries are made differently, and they all have limited lifespan. Most car batteries in good condition will last at least two weeks without needing to start the vehicle to recharge it, according to the AAA. There are other issues that can affect the lifespan of a battery such as corrosion, extreme temperatures, usage, etc. A typical vehicle battery can cost in the neighborhood of $50 to $120, although there are specialty batteries that can cost upwards of $90 to $200, not including service costs. Customers already cash-strapped may not be able to afford regular maintenance. And we all know when the car doesn’t run, the customer doesn’t pay.

Modern technology and analytics help to alleviate this concern. Evo GPS monitors battery life regularly. The Advantage dashboard shows you which vehicles have low car battery voltage at a glance, so you can address the concern proactively. Advantage’s low battery indicator can also help you with lot management to ensure all your vehicles have good batteries prior to sale.

3. Abandoned vehicles is an issue all around the world.

Today, the United States has no national database nor estimate of the number of abandoned vehicles in the country. It is difficult to produce reliable estimates, partly because of different approaches to counting. To help put this into perspective, let’s look at Michigan. After Michigan implemented a statewide data system for tracking towed vehicles, more than 92,000 abandoned vehicles were removed, according to the U.S. Department of Justice.

Two of the top reasons cited for abandonment is:

    1. Cost of repairs
    2. Change in jobs

Typically, vehicles are abandoned in remote or dark areas making them easy targets for thieves and vandals.

Advantage uses smart technology to notify you of potential vehicle abandonment risks. This gives Auto lenders an opportunity to reach out to the borrower to see if there is a payment issue before it becomes a default. And if a repossession is required, the lender is able to collect the vehicle sooner than later which helps them reduce reconditioning costs and time.

This is just three examples of how Advantage delivers proactive risk avoidance. Modern technology does the heavy lifting for you and provides you with actionable insights that can save you time and money.

Michelle Jackson - Vice President of Sales - Advantage GPS

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