Top 3 Reasons Why Car Dealerships Need GPS for Their Inventory (2024)

  • September 29, 2021

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If there is one technology every car dealership must embrace, it has to be GPS tracking for car dealers. These tiny tracking devices are priceless for car dealerships and car financing institutions. As a matter of fact, independent statistics indicate that about 70% of car dealerships in the United States already have their vehicles installed with GPS trackers.

Without a doubt, GPS tracking for car dealerships continues to get more popular, and undoubtedly for the right reasons as it goes beyond just merely locating the whereabouts of vehicles.

Let’s highlight the 3 Reasons Why Car Dealerships Need GPS Trackers for Their Inventory…

Manage Assets on the Car Lot

Although most people look at dealership GPS tracking devices as technological tools for locating vehicles miles away, there is no better way tomanage your inventoryand vehicular assets than by using a GPS car tracker.

A dealer asset management system that leverages GPS devices will conveniently help you identify the position of all the vehicles in your inventory and car lot. Furthermore, integrating tracking systems in your inventory management will equally give you real-time knowledge of the conditions of all the cars in your car lot.

GPS trackers can provide you with fuel levels, detailed diagnostic information, and the battery life of each car in your yard. Thus, with all the diagnostic data and locational and functional information, you know which cars are ready for viewing by prospective buyers and which ones are not.

Increase Security

The automobiles in your directory are your assets—they define your current worth and the future of your business. So, you would not want to lose any of them, and a vehicleGPS trackingdevice can help you protect your assets.

And with the rise of automobile thefts in car lots, you can use a dealership GPS tracking device to prevent theft. Many tracking devices are easily programmable to send alerts if a car moves. Geofencing and similar features will send signals to your mobile phone the moment a vehicle leaves your lot, making it difficult to lose any automobile through your staff, people purporting to be clients, or any strangers.

Track, Repossess, or Recover

The demand for used cars is at an all-time high, which is good news for car dealerships. But sometimes, clients fail to respect their side of the bargain for one reason or another. Thus, car dealers need to devise ways to always keep an eye on the automobiles loaned to clients for purposes of repossession, renegotiation, or recovery.

You can capitalize on a vehicle tracking system to enable you to monitor the whereabouts of your vehicles and recover them swiftly when applicable. You can use GPS devices to locate and efficiently repossess your car.

You can also track down your vehicles with defaulted payment plans and initiate transparent communication, or rework payment arrangements with the customers. This way, you are confident that you will not lose any assets.

Finally, you can also equip your demo or loan vehicles with car GPS trackers. This allows you to stay in the know of their destinations and how their respective drivers handle them. These devices can reliably monitor cars, including their speeds on the road and any form of misuse. In case of anything, you can always hold the drivers of your demo vehicles liable. It is vital to disclose to potential customers that the cars have tracking devices, and recklessness could attract fines.

Improve Your Efficiency and Security withGPS Tracking for Car Dealers

GPS tracking for car dealers allows you to monitor your vehicles in the yard discreetly and track them wherever they go. The devices are pretty tiny, yet powerful. Our Safepoint GPS system will last for months without running low on battery. But more importantly, they fit in tight places that make them impossible to find by your customers or thieves.

How GPS Tracking Can Aid With Vehicle Health Monitoring

When managing a dealership, you’re in charge of maintaining hundreds of expensive vehicles at the same time. Each unit requires on-time maintenance, continual health tracking,

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Top 3 Reasons Why Car Dealerships Need GPS for Their Inventory (2024)

FAQs

Why do dealers put GPS on cars? ›

Why? Yes, many dealerships install GPS trackers on their cars. It helps in managing and protecting the inventory, enabling quick recovery in case of theft and offering valuable data on the vehicle's usage and condition.

Why do cars need GPS? ›

Car GPS trackers are electronic devices designed to monitor and record your vehicle's location at any given time. GPS stands for global positioning system, and trackers can be an excellent tool for parental oversight, company fleet surveillance, or an added layer of personal security.

What is the function of GPS in vehicles? ›

A GPS navigation system provides you with information related to your location and driving direction. It is used to navigate. On the other hand, a GPS tracker system is responsible for keeping track of the vehicle's physical position and monitoring it's speed and direction.

Why do car dealers have no inventory? ›

This may occur for many reasons, such as unexpectedly high demand for a particular model or production delays. Car inventory shortages can have many impacts on car dealerships and manufacturers. For example, if a dealership does not have the vehicles customers want, it may lose sales and damage its reputation.

Do dealership cars have GPS? ›

As a matter of fact, independent statistics indicate that about 70% of car dealerships in the United States already have their vehicles installed with GPS trackers.

Why is GPS so helpful? ›

The GPS receiver plots the car's constantly-changing location on an electronic map. The map provides directions to the person's destination. Both the location and the vehicle are plotted using satellite data. Some hikers use GPS to help them find their way, especially when they are not on marked trails.

What are the benefits of a navigation system? ›

GPS (Global Positioning System) and other navigation systems provide real-time information about traffic conditions, road closures, and detours, helping drivers plan their routes accordingly and avoid potential hazards.

Is car GPS better than phone? ›

If you generally listen to voice directions and don't need to access navigation while driving, an app is fine. If you're concerned about battery drain, mobile data usage, small smartphone screens, and mounting problems, a dedicated car GPS service might be the right choice.

What are the three functions of GPS? ›

The Global Positioning System (GPS) is a U.S.-owned utility that provides users with positioning, navigation, and timing (PNT) services.

How does GPS help drivers? ›

Most GPS trackers also have built-in accelerometers and can alert drivers and managers to patterns of poor driving behaviors, such as harsh braking, harsh acceleration, harsh cornering and speeding.

What inventory method do car dealerships use? ›

Many auto dealerships in the U.S. choose to use the LIFO inventory valuation method because they have found the benefits to be significant. The benefits of using the LIFO method for auto dealerships include: matching inventory costs to revenue, reduction of income tax liability (deferment), and.

Do car dealers have too much inventory? ›

New car prices are on the decline as the highest inventory levels in years force dealers and automakers to reduce their margins. The average price of a new vehicle was $47,401 in January, which is a 2.6% drop from the average price in December of $48,652, according to Kelley Blue Book data.

Are car dealer inventories improving? ›

State of play: Inventories on dealer lots — both new and used — are climbing toward pre-COVID levels, analysts say, which is starting to put downward pressure on prices.

How do you know if a dealership put a tracker on your car? ›

First, check with the salesperson or manager who sold you the car. They may be able to tell you if a tracker was installed during the sale. If not, they should be able to give you the contact information for the person who installed any tracking devices on the car. Next, take a look around the exterior of your car.

What happens if you remove a dealership tracker? ›

However, if a customer does remove the GPS tracking unit, a tamper alert will be sent. This means it's been removed from the vehicle. Since it does have a backup battery, the device will continue to track. It gives the lender the chance to contact the customer and know the loan is probably at risk.

Can I legally remove a GPS tracker I find on my car? ›

If you find yourself at the receiving end of illegal tracking, it is advisable to seek professional help, such as mechanics or other electronic technicians, in finding the tracker and disposing it. You can also seek help from law authorities to find who placed the tracker there.

Can a finance company put a GPS on your car? ›

Due to the high default risk, it is common practice for lenders to install GPS tracking devices on auto purchased via subprime loans. This way, the lender will be able to reduce the costs associated by the recovery, late payment and car mishandling.

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