Technology has proven a very effective business tool, especially in the subprime and used car industries. Innovative products such as starter-interrupt and GPS can provide a dealer or lender with more security and reliability of timely payments from their consumers. This simple concept is extremely critical as delinquency and skips can be the number one concern of any emerging or established dealership.

The promise of any technology is to enhance business productivity. While harnessing the power of technology to achieve a competitive edge applies to all industries, it is especially relevant in todays used car business. Everyday business tools such as the phone, fax, email, and computer technology help us all to work more efficiently and effectively. However, in this demanding industry, utilizing technological innovations such as starter interrupt and GPS can boost overall business productivity above and beyond. Patented code-generation and Internet-based management systems increase dealership potential and shift payment/collection responsibilities back to the consumer. Rapid advances in communications technology are propelling even newer product capabilities utilizing cellular, GPS, and GSM technologies.

The average subprime portfolio with starter-interrupt devices installed experiences delinquencies of less than 5 percent. This is compared to an unprotected subprime portfolio, which can see a delinquency rate of 25 percent or more. By keeping customers payments current, devices like starter-interrupt can help a portfolio perform in a more predictable and positive way for the lender, increasing its bottom-line value.

There are extensive consumer benefits from this technology as well. The consumer obtains the opportunity to rebuild their poor or not-yet-established credit. Starter-interrupt devices remind the consumer with an audible warning every time the vehicle is started and turned off that a payment is coming due or is already overdue. If throughout the warning period, the consumer still fails to make a payment, the starter-interrupt system safely disables the vehicle. The payment must then be made or other arrangements agreed upon with the lender before the vehicle can be started again. This process helps the customer make payments on schedule, and in turn can increase their credit rating and refine their payment habits.

Another direct benefit to the consumer is that dealers can often give them lower interest rates and qualify them for even better vehicles because of starter-interrupt devices. Ultimately, they help to create a better consumer/lender relationship from the beginning. The consumer is receiving a better vehicle for a lower rate, and the lender can be assured that they will be paid on schedule.