The vehicle telematics industry is maturing and there are pieces of it everywhere. Still, you’re unsure that it is right for your vehicle finance business. Your operations are locally-focused with one to a few lots only. Is investing in the technology worth it? Well, there are at least three good reasons to make the investment.
Telematics was created, in part, by the U.S. Government. Here’s a quick history review. The first step toward telematics systems was the GPS. These devices are mainly known for providing location data. PropertyCasualty360° notes that in the 1960s “Initially, GPS was intended for military and intelligence applications” before being adapted for non-classified uses in the early 1990s. With the advances in other areas of technology, we are now able to tap into vehicle information such as starts and stops or miles driven. Organizations use telematics solutions for fleet management, cargo tracking and more. In the vehicle finance industry, however, the requirements are a bit simpler. The devices used with vehicle finance telematics solutions can be “toss and go” or hardwired into the car. Your solution choice depends on the amount of information and control that your operation need.
Three Reasons to Use
1. Reduce Your Risk of Asset Loss:The biggest advantage to using a telematics solution such as LenderOutlook is to locate the vehicle when necessary. Sometimes knowing where to find your asset is the only information you need whether for peace of mind or to activate an internal process. With more sophisticated devices, you can trigger payment reminders or, as a last resort, disable the starter.
2. Minimize Recovery Expenses:In addition to the locate function, telematics can provide alerts when a vehicle is being towed or driving out of a set virtual boundary known as a geofence. And, with LenderOutlook, you will be notified of if a vehicle was taken to an impound lot and which one. This information saves you money by only having to go to one location for retrieval and not spend your staff’s time working to find a car – instead they can be selling or processing loans.
3. Easy To Scale: Still unsure about telematics? Working to grow your business? No problem! It’s a not-often mentioned benefit, but you can start small to get comfortable with the technology. Try a few devices, then add on.
Hopefully this quick read gave you confidence to dip your business’ toe into the telematics data stream (plus a few fun facts to use at parties, such as “in 1983 President Ronald Reagan made an order to allow anyone to use the [GPS] system).* There are many benefits to using this technology solution with your vehicle finance business (whether you’re a credit union or a BHPH dealer backing the loan). If you still have questions, please visit here to submit them.
*Rubin, J. (2013, June). Global Positioning System (GPS). Retrieved December, 2016, from juliantrubin.com/encyclopedia/electronics/gps.html