How does GPS (global positioning system) affect the buy here, pay here (BHPH) market, and what is GPS?

How does GPS (global positioning system) affect the buy here, pay here (BHPH) market, and what is GPS? GPS has proven invaluable in our daily lives, in ways many of us are unaware. The BHPH market is no exception, and GPS offers many options tailored to the industry, maximizing delinquency management. The following overview will introduce the concept and history, different applications, and a few of the benefits and features it has to offer the BHPH market.

Lets start with a brief look into the history and concept of GPS. The official name is "NAVSTAR GPS" which stands for Navigation Satellite Timing and Ranging Global Positioning System. A series of two-dozen satellites often referred to as a satellite constellation transmits signals to GPS receivers telling the receivers their location, speed, and direction among other details, depending on the programming of the receiver. The information sent to the receiver is then, in the BHPH industry, accessed using Internet-based applications. GPS was developed by the United States Department of Defense. Although the satellite constellation is maintained, managed, and created by the Department of Defense, it is free to civilians as a public good.

As mentioned earlier, GPS is used in our daily lives in ways we may not be conscious of. Do you have a pet with an implanted chip in the off chance they get lost? That is a tiny GPS device. GPS is used for map making, land surveying, telecommunications, dispatching fleets, 911 assistance, and roadside assistance. Those are just a few uses for GPS and, as the technology is explored further, other applications will emerge.

Of even greater appeal is how GPS is being tailored for the BHPH market. The devices or receivers are becoming sleeker and smaller in size, making them more difficult for the delinquent customer to find and remove. The receivers are programmed to report details specific to the industry. Mainly location, as the whereabouts of a delinquent customers vehicle is valuable information for a dealer that wants to recover the asset.

In addition to helping with repossessions, there are several other benefits for BHPH dealers. One important benefit is that the devices are re-usable. The dealer can choose to re-install the device in another vehicle. Some GPS suppliers offer 24-hour support. Dealers can locate the vehicle at any time of their choosing using Internet-based applications rendering the dealer independent of their GPS supplier. Another added benefit is that reductions on insurance may be available for BHPH dealers installing these devices on vehicles.

In other words, if maximizing delinquency management is critical to the BHPH market then collections can become more important than sales. GPS devices can save a dealer considerable time and money on collections by locating the vehicle and in some cases disabling the starter.