2.5 Million Reasons to Use GPS Tracking Devices
For the sake of this short discussion, let’s put aside all of the technology reasons that make telematics and GPS tracking device the best risk management solution for vehicle dealerships and lenders. And let’s just look at the actual statistics when it comes to the subprime auto loan market – statistics that show how you can turn subprime customers into prime profits with the right telematics partner.
The Infographic below begins by presenting all of the data that defines the subprime customer:
- They represent 25% of the total consumer universe.
- They account for 27% of all auto loans.
- Their average monthly payment is $500 – $50 more than prime customers.
- Their average loan term is 71 months – a year longer than less riskier prime loans.
- And the average used car is financed for $14,410.
What do these numbers mean? They mean it’s time to question what you’re doing to mitigate all of that risk. And the first question should be: “Where do I start to find the right telematics partner?”
Not all telematics providers are created equal. Or even stick around for any length of time.
You can also see in the Infographic below that almost half of new automotive telematics providers entering the market over the past ten years have gone out of business. Which means choosing the right telematics partner is a risk in itself – unless you know who the reliable ones are. The ones investing in the future of GPS tracking for businesses like yours. And the ones you know who will always be there for you when you need them.
Protecting your assets with GPS tracking devices is good for your business.
There’s a bottom line this. It makes solid economic sense to partner with a GPS provider: telematics on its own has put over 2.5 million consumers into used cars by making the loans less of a risk. That’s 2.5 million sales and 2.5 million great reasons to grab your share of the subprime market with the help of the right telematics provider.