Selected by CIO Review as one of the Top 20 Most Promising Automotive Tech Solution Providers in 2014.
By David Meyer, Executive VP
Operating a BHPH dealership comes with a host of responsibilities — as well as challenges. The vast majority of BHPG dealers focus their time and energies on moving vehicles out of the lot as quickly as possible. But while vehicle sales are your top priority, it’s also important to make sure those customers buying your cars are staying on track with their payments.
The reality is, many dealerships don’t have the resources, tools or expertise to focus on building a better collections department. And traditionally, managing your collections has been a tremendous drain on manpower and hours that would otherwise be spent on selling more cars. Still, in today’s hyper-competitive BHPH market, it’s imperative to make collections a priority in your overall dealership strategy. Missed payments and the time it takes to track down delinquent customers take a huge chunk out of your hard-won sales. So what’s a dealer to do?
Here we share with you some best practices to help you improve the efficiency, productivity and profitability of your collections department.
Do Your Due Diligence
Don’t just accept a subprime auto loan application at face value. Perform the due diligence to check the customer’s credit scores, assess payment history and confirm STIPs. This will help you match the right customer to the right car, and prevent accounts from having to go to collections in the first place.
Use a GPS Vehicle Tracking System
GPS vehicle tracking devices installed in the vehicles will allow your collections staff or third-party provider to quickly locate delinquent vehicles so that they can be repossessed and recovered in less time, with less cost. Look for a GPS tracking system that allows you to set up geographic boundaries (such as around a parking garage or gated community) and receive alerts whenever a vehicle enters or leaves that boundary. Other useful alerts include notification for extended stops.
Much of collection staff time is spent picking up the phone and calling customers to make payment arrangements — inefficient, at best. A GPS vehicle tracking system with an automated payment reminder feature will save countless hours in phone calls, plus keep communications open with customers who may be struggling to meet their payments but have every intention of paying.
When all else fails, and the customer does not seem willing or able to make their payments on time, a GPS vehicle tracking system with a remote starter disable feature can substantially improve collections. Customers understand from the get-go that their vehicles will be disabled should they become delinquent on the loan. This provides an added incentive to stay on track with their payments. When a customer misses payments, disabling the vehicle until the payment is made is a highly effective collections strategy. And when the customer defaults on the loan, the starter disable feature makes it easier, quicker and more cost-effective to repossess and recover the vehicle.
GoldStar GPS offers all of the features, and more, to help improve the efficiencies, productivity and effectiveness of your collections — allowing you to remain focused on reaching more customers and selling more vehicles.
To learn more, visit www.GoldStarGPS.com.