Selected by CIO Review as one of the Top 20 Most Promising Automotive Tech Solution Providers in 2014.
-Neil Fisher, RVP Automotive Solutions
As we near towards the end of another year its important to take into mind the overall status and credit ratings our country currently faces. According to the Wall Street Journal, in April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
With that said, my main concern is focused on the automotive industry, where its headed and how it is being effected. Our industry is in fact a booming one when it comes to new car lines, loan options and funding, but there is times of trouble as well. The auto industry, responding to increased loan default rates and a reported 2.5% decrease in sales last year, has begun offering new loan options to open the door to a wider range of customers. Because auto loan default rates are increasing rapidly as well, dealerships across the nation are feeling the impact of the U.S. overall economic credit scores.
Standard & Poor's reported that 6.01% of car loans made in 2011 were already past due in November. This figure is reportedly higher than it's ever been, and stats are already looking worse for 2012.
One trend that is being seen due to the undeniable credit status is the use of BHPH dealerships at new and used car dealerships. This allows dealerships that would have otherwise turned down a fair to poor credit rated customer to finance them independently. At a time when providing automotive financing is undeniably risky and approximately 30% of sub-prime loans require collection activities, reducing payment defaults and related collection costs is the only way these dealerships are finding a way to increase their profits. In doing so they have implemented GPS vehicle tracking as a way to monitor their assets and protect their collateral no matter the situation.
Spireon offers a full line of Automotive GPS Solutions designed exclusively for this type of economic status. Whether it is our comprehensive and customizable GoldStar GPS line, our affordable and simple to use EnfoTrace GPS line, or our CMS LoanPlus GPS created just for lenders, we have the industry covered.
To learn more please visit www.spireon.com/products-by-brand.