The Importance of Investing in Payment Protection Devices
In NIADA’s 2010 Industry report, there are some interesting statistics which are worth mentioning. The first table which caught my attention is the subprime analytics benchmarks table.
It shows a comparison between 2008 and 2009 of dollar losses and loss rates. In 2009 the average default rate was 30.11% compared to 28.43% in 2008. This means that approximately 30% of loans are written off each year. The average net dollar loss for both 2008 and 2009 was over $5,000 which means that on average BHPH car dealers lose over $5,000 per year on bad loans. In fact, for the buy here pay here industry, bad debt accounted for approximately 20% of sales in recent years. What is interesting is that the cost of bad debt (20% of sales) is higher than the financing income (16% of sales).
Car dealers can reduce these kinds of losses significantly by installing GPS Tracking devices on their financed vehicles.
What is encouraging is that according to the NIADA membership data, 20.1% of members use a payment protection device This is up 7% from the year before when 18.8% of members claimed to have a payment protection device.
The impact of the increase in number of payment protection devices is evident in one of the pages from the report which shows a reduction of late payment and reduction of repossession drop 4% and 2.4% respectively.
So in a nutshell, don’t delay any longer. Get a GPS Vehicle Tracking device and reduce your bad debt costs significantly. RCI Wireless Control offers a turnkey solution. Its North American manufactured devices are a snap to install and are connected to ‘RCIs gps network in just a few minutes through RCI’s in-house <a href="GPS vehicle tracking device.
The advantage of RCI is that it manufactures its devices in-house and develops and maintains its own <a href="gps vehicle tracking applications and solutions. RCI also controls the communications network on which the devices operate. This allows RCI to control the entire solution at a low cost which can then be transferred as savings to its customers.
Cut your losses starting now – call RCI Wireless Control – 1-877-940-3028
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