The fluctuating economy has resulted in volatile auto finance markets, and deploying GPS tracking devices has become a widespread practice to ensure prompt payment and in expediting repossessions. The risky credit and sub-prime markets lend themselves to situations where tracking technology is an invaluable weapon in the cat and mouse auto credit game.

GPS Tracking Revolutionizing Car Dealer Repo Wars
GPS Tracking Revolutionizing Car Dealer Repo Wars

For some years now, GPS tracking devices have been used by auto finance companies to push through credit applications that would have otherwise been declined. They have played a major role in acquiring credit for individuals who would have been categorized as high-risk. However, some procedures, or lack thereof, used by numerous car dealerships have bordered on illegal and can definitely be deemed unethical.

At the forefront of the issue is a lack of disclosure, or burying in the fine-print, of the presence of a GPS tracking device when credit finance paperwork is being finalized. The consumer is completely unaware of the possibility that if a payment is missed or is late, that their vehicle can be rendered inoperable until that payment is received.

It is plainly obvious what the thought process of the creditors is. They are concerned that if the consumer knows that a tracker is already installed in the car, that they will attempt to defeat the device. However, in the spirit of good business, it’s best to disclose that a GPS tracking device will be delivered with the car, and that it’s presence is best for everyone involved. In many cases, this is the only avenue available for credit approval to consumers who fall into the high-risk lending category. Let’s hope that, moving forward, the entire process adopts more transparent and ethical business practices.


We have more great articles in our archives on GPS technology. “GPS Tracking Leads Chicago Police to Recover Stolen Cars, Investigation Ongoing.”