AUTOMOTIVE SOLUTIONS GROUP WHITE PAPER. How Using the Right GPS Tracking Device Can Expand Your Reach With Less Risk

Transcription

1 AUTOMOTIVE SOLUTIONS GROUP WHITE PAPER How Using the Right GPS Tracking Device Can Expand Your Reach With Less Risk

2 WHITE PAPER GoldStarGPS.com Spireon s CDMA Talon GPS Tracking Device: Driven by Quality White Paper Presented by Spireon Automotive Solutions The Growing Demand for GPS Vehicle Tracking Systems After years of declining sales, the automotive industry is once again on the rise. Fueling much of the resurgence in vehicle sales, is the recent growth in subprime automotive financing. So what is fueling the increase in subprime auto loans? In the wake of the economic crisis, increasing numbers of car buyers found themselves saddled with poor credit resulting from job loss, foreclosures, bankruptcies, and other financial woes. While still struggling with low credit scores, many of these customers are moving toward financial recovery. They ve found new jobs and careers, are earning decent salaries, have wiped the slate clean and are lowering their debts. Despite this progress, these credit-challenged customers still cannot qualify for traditional auto finance. And yet, these customers still need vehicles. To meet that demand, increasing numbers of dealerships and lenders are approving more subprime auto finance, and going deeper and deeper in the process. For more information, please visit GoldStarGPS.com or call

3 Subprime Goes Deeper 2 Just take a look at the numbers. According to a recent Experian study, in the last year we ve seen a nearly 18% increase is subprime financing for new vehicle purchases, and a nearly 40% increase in deep subprime lending to consumers with 600 FICO scores and lower. While not as drastic, this same trend applies for used-car financing with a nearly 9% increase year-over-year in deep subprime lending, and a 5.3% increase in subprime lending. Consumers burdened with the lowest credit scores those considered nonprime, subprime and deep-subprime are seeing higher rates of approval for auto loans, with a 13.6% increase for new car loans and a 5.47% increase for used car loans in 2012 over This trend toward deep subprime lending appears to be continuing. Loans to deep subprime car buyers jumped in the first quarter of this year 3.45% for consumers with credit scores of 550 and lower, to be exact. On the other hand, loans to customers with excellent credit scores of 740 or higher dropped off by 3.14% in Q1 as compared to this time last year. Despite what their low credit scores may indicate, the large segment of credit-challenged consumers remain responsible members of the middle class. They have good jobs, earn decent salaries, have lowered their debt, and for the most part, pay their bills on-time. Now let s take a look at some of the repercussions of this increase in deep subprime financing. Q1 numbers showed a 1.3% increase in 30-day loan delinquencies, a significant 12.4% increase in 60-day delinquencies, and a whopping 16.9% increase in repossessions over Q1 of last year up from just 0.43% in Q1 of And while repossession rates for banks and credit unions were down from last year by 14.9%, repossession rates for finance companies was up by 52.1%. In the last year we ve seen a nearly 18% increase in subprime financing for new vehicle purchases, and a nearly 40% increase in deep subprime lending to consumers with 600 FICO scores and lower.

4 3 Controlling the Risk with GPS Tracking As subprime auto lending continues to gain momentum and loans dive deeper, the associated risks continue to rise. Dealerships and lenders who offer subprime auto finance should be prepared for an increase in delinquencies, defaults, repossessions, collection staff time and resources all of which come with significant costs that cut into profitability. To mitigate these risks and costs while saying yes to more customers, increasing numbers of dealers and lenders across the automotive finance industry are adopting GPSbased vehicle tracking and collateral management systems. According to a recent NABD survey, 46% of surveyed BHPH dealers said they used a disabler product with a payment reminder, while 36% said they used GPS tracking systems equipped with payment reminder devices. 74% of financers said that using a GPS vehicle tracking and collateral management system reduced delinquency rates by more than 10%. The most effective of these systems enable dealerships and lenders to track the location, movement and status of high-risk vehicle collateral in real time, making recovery and repossession of delinquent assets significantly faster, easier and more cost-effective. The more advanced GPS vehicle tracking and collateral management systems include additional features such as payment reminders, starter disablers, and alerts triggered when vehicles enter or leave specific geographic boundaries and are stopped for extended periods. These features further reduce repossession costs, while also promoting on-time payments that help customers stay in their vehicles and rebuild their credit. Dealerships and lenders are seeing results from their GPS vehicle tracking and collateral management systems. According to another NABD survey, 74% of financers said that using a GPS vehicle tracking and collateral management system reduced delinquency rates by more than 10%. For a large lender, this means hundreds of thousands, if not millions, of dollars in collected revenue.

5 Dealerships and Lenders using Spireon s GoldStar GPS the industry s leading GPS collateral management and vehicle tracking solution have reported significant savings as a direct result of GPS-based vehicle tracking. Of these customers: 4 84% have reported reduced delinquencies 78% have been able to finance customers with lower credit 68% have been able to finance customers with smaller down payments 77% have seen a significant improvement of customer credit ratings All of which translates into lower risk, lower losses and lower costs for our customers. In fact, Spireon s solutions have helped vehicle finance customers increase their return on capital by 87%. Based on these numbers, it s no wonder the demand for high-quality, proven GPS vehicle tracking and collateral management systems is escalating. Today s automotive financers need solutions that easily scale to handle their growing demands and subprime automotive business. They need solutions that can be quickly adopted and deployed on a wide scale, while easily adapting to the specific needs of dealers, financers, banks and credit unions. And they need solutions that provide dependable, reliable performance. Spireon s GPS-based collateral management systems have helped vehicle finance customers increase their return on capital by 87%. Without reliable, high-quality GPS devices in place, collateral management systems simply cannot deliver the real-time data needed to reduce risks and costs associated with subprime auto loans.

6 5 Talon Takes the GPS Device to the Next Level Employing GPS vehicle tracking and collateral management systems can have a significant boost on the bottom line for financers offering subprime automotive finance. But those bottom-line results depend largely on the quality of the system not just the software and interface, but the actual GPS devices used with the system. Now in its 11th generation, the Talon, featuring next generation CDMA wireless technology, reflects a decade of continuous innovation and refinement aimed at meeting the evolving needs of the automotive finance industry while delivering the utmost reliability, stability, durability, and cost-efficiencies of any device on the market. This unrelenting pursuit of innovation has resulted in a number of industryfirst and industry-leading enhancements across multiple performance areas. YOUR CDMA CONNECTION The 11th generation Talon GPS device operates on the latest, ultra-reliable CDMA wireless networks. Our CDMA technology delivers a range of competitive advantages to our customers, including: Faster Networks CDMA provides better network access and data speeds, allowing dealers to locate and recover their vehicle collateral faster. Ultra-Reliable Connections CDMA offers a much more reliable connection, keeping dealers continuously connected to their collateral in real-time. Wider Reach and Coverage CDMA-enabled Talon provides an extended reach and better coverage even in rural areas than other devices on the market. Future-Proof Investment CDMA-enabled devices deliver stronger, more reliable performance today while preparing for the wireless advances of tomorrow. CDMA devices will work with 3G CDMA networks. Dealers who pur chase 3G GSM devices, on the other hand, will be forced to invest in all new devices just a few years down the road. Double the Data Plan We ve more-than doubled the data plan on the 11th generation Talon to bring our customers more features and functionality as their businesses grow.

7 TAMPER-RESISTANT AND RUGGEDIZED DESIGN Much thought and detail has been put into the physical design of the Talon to ensure reliable performance that keeps our customers continuously connected to their critical data. Boasting a sleeker profile and smaller footprint, the latest generation Talon device is built to resemble part of original equipment inside the vehicle. This deters people from identifying it and tampering or removing it. 6 The Talon is also the only device on the market that is ultrasonically welded together and sealed. This not only adds protection against moisture and dust, but deters tampering as well. The Talon s mechanical design provides a high degree of durability and resistance to a wide range of environmental conditions, including extreme heat and cold temperatures, moisture, humidity and dust. SUPREME SCALABILITY The latest generation of Talon has been engineered to provide a highly scalable platform that allows us to easily and quickly add features and functionality based on our automotive finance customers specific needs. This scalability also enables us to quickly reuse and adapt Talon for specific segments within the automotive finance industry, including BHPH dealerships, franchise dealerships, automotive finance companies, banks and credit unions without the need for (or costs associated with) re-engineering devices from the ground up. EASE OF INSTALLATION The Talon offers fast and simple installation, with minimal wiring to mess with and options for both an external or internal antenna that allows for more covert installation of the device. RESETTABLE INTERNAL FUSE Many devices are prone to blown fuses when vehicle batteries are jump-started or when the battery is replaced altogether. A device with a blown fuse can t connect you to your vehicle data. To prevent this from happening, the Talon is designed with a resettable internal fuse. In the event of a voltage spike up to 90 volts, the fuse will automatically reset so communications will not be disrupted. BATTERY PERFORMANCE The Talon comes with enhancements that extend battery life and performance.

8 7 Certified Quality at a Cost-Effective Price Even with its wide array of industry-leading innovations and enhancements, the Talon remains one of the most cost-effective GPS tracking devices on the market. Due to our scale and strong vendor relationships, we ve been able to keep our costs low by building a device from materials that meet and exceed performance standards and expectations while also delivering the feature sets our customers truly need. The Talon was also the first device in the industry to become PTCRB-certified, signifying that the device meets the standards of multiple major wireless carriers in North America. This PTCRB certification allows for future expansion possibilities. A quad band GSM receiver, the Talon is able to go into Canada and Mexico, with future reach potential into Central and South America. Talon customers rely on the device to capture and transmit vehicle data including location reliably, accurately and quickly. Talon offers the industry s fastest time to warm fix rate of 18 to 22 seconds. This means that the Talon quickly re-establishes communication with satellites and calculates the device s position (or fix) on the ground, even after it s been shut off for several minutes or hours. In the event the Talon device has been shut off for days, weeks, or even months, its cold fix time is less than 40 seconds. DEALER S CHOICE Built with patented GPS technology, Talon has all the required licenses and certifications, including stringent FCC certification. Talon additionally meets TRP (Total Radiated Power) and TIS (Total IIsotropic Sensitivity) certifications.

9 Customers Demand Quality, Which is Why They Demand Talon 8 While meeting the highest federal and industry certifications, Talon also meets the rigorous standards of our most demanding audience: our customers. To date, nearly 1 million units of Talon have been shipped to customers more than any other device on the market. Our warehouse ships between 2,000 and 2,500 Talon devices a day, with an exceptionally low and Bestin-Class return rates. When rare issues with the Talon do arise, our customer support team has been quick to resolve them. Between the first and third quarter of 2013, post-shipment customer support interactions decreased by 30%. In the same time span, our ability to resolve these customer issues during the first phone call increased from 90% to 95% after releasing the Talon. This Best-in-Class resolution rate is a reflection of Spireon s commitment to providing world-class customer service. Our number-one priority is the complete satisfaction of our customers not only with the quality of our products like the Talon, but with every interaction they have with our company and our people. To achieve this high level of customer satisfaction, we have expanded our warehouse and fulfillment capabilities, added a dedicated order hotline, and ship 99% of our orders the same day. We ve also tripled our customer support team, so customers can always reach a live, knowledgeable person. To date, nearly 1 million units of Talon have been shipped to customers more than any other device on the market. Now in its 11th Generation, the Talon with CDMA technology, reflects a decade of continuous innovation and refinement aimed at meeting the evolving needs of the automotive finance industry while delivering the utmost reliability, stability, durability and cost-efficiencies of any device on the market.

10 9 Do Your Devices Pass the Test? When comparing GPS-based collateral management and vehicle tracking systems, it s important to look at the whole solution the wireless technology supports the architecture, the interface, the software, and the hardware. Don t take a vendor s word at face value when they claim their devices are the best on the market, or denounce competing devices as inferior in quality and performance. Ask the vendor to show you the data that backs up their claims. Our number-one priority is the complete satisfaction of our customers not only with the quality of our products like the Talon, but with every interaction they have with our company and our people. Automotive Tech Solution Providers 20 Most Promising Automotive Tech Solution Providers Spireon s Automotive Collateral Management Platform Recognized as Top 20 Most Promising Automotive Tech Solution Providers by CIO Review Spireon wins Best M2M Business Intelligence Platform 2013 at the Battle of the Platforms, hosted by TMC. Spireon captures the Automotive Buy Here Pay Here Finance and Specialty Solution A-list in M2M award! 2014 Compass Intelligence Mobility Awards

11 To help you in evaluating GPS tracking devices, here are the key questions you should be asking every provider you talk to: What generation GPS tracking device is this? 2. What network does the GPS device run on? 3. What is the longevity of the device technology? 4. Has the device been tested to withstand extreme heat, cold, moisture and humidity? Ask to see those numbers. 5. Is the device sealed, or can it be easily pried apart? 6. Can you easily and quickly add the features and functionality I want without having to build a new device? 7. Will the devices grow with your dealership and change in technology? 8. Does the device have protection in the case of a power surge? 9. Do you offer certified installation services? 10. Is your data and your customers data secure that the device collects? 11. How long is the battery life and what are you doing to extend it? 12. What licenses and certifications does the device have? 13. How many devices have you sold to date? How many do you ship in a day? 14. What is the return rate for your devices? 15. What is your resolution rate for device issues? 16. How quickly will my devices get shipped to me? 17. If I have a question or concern, will I be able to reach someone immediately? At Spireon, we welcome your questions. We also invite you to put our Talon GPS tracking device to the test. Contact us today for a demo of our best-selling, high-performing Talon. Call (866) or visit us at Spireon.com.

12 Leading Provider of GPS Tracking Devices Call us today at: or visit: GoldStarGPS.com Gillette Avenue, Suite 100. Irvine, CA Spireon.com