Do Financed Cars Have Tracking Devices, & Do Cars Have GPS For Repo?
According to auto loan statistics, there was over one trillion dollars of debt related to vehicle loans in the United States in the year 2017. Getting an auto loan has become easier, leading to an average new car loan of over $30,000 in 2017. Consequently, monthly payments are over $500. It’s alarming, and maybe you see why this is concerning. With defaults on the rise, similar to pre-2000s housing crisis trends, vehicle repossessions are increasing. This has led many car dealerships to take precautions by installing GPS tracking systems on new cars before you drive off. If you’re car shopping, be aware, as this trend continues to grow. Do cars have GPS for repo? Yes, and in this article we will go over everything you need to know about how car dealers use GPS tracking devices!
How Car Dealerships Utilize GPS Tracking To Mitigate Risk In Financing High-Risk Loans
Many car dealerships provide new vehicles and financing. They make profits from these loans, so they must ensure only qualified people receive them. But there’s a problem. Dealerships are offering credit to those considered “high risk.” This has led to more subprime loans and, thus, more defaults and repossessions. What’s the solution? Real-time GPS trackers.
With these trackers, dealerships can know where a vehicle is always. On the lot, they help sales associates find cars quickly and check if they have gas. As subprime loans increase, so does the use of GPS for repo. If you buy from a dealer, expect your car to have a GPS, making repossession easier if you default.
So yes cars do have GPS for repo, and the use of GPS tracking devices for car dealers will most likely rise as more subprime loans hit the books and defaults naturally occur.
- Monitoring High-Risk Loans. Many dealerships extend large lines of credit to “high-risk” individuals, leading to an increase in subprime loans and defaults. GPS tracking helps mitigate this risk.
- Real-Time Vehicle Location. GPS trackers allow car dealerships to know where a vehicle is at all times, assisting in default security measures.
- Assisting Sales Associates on the Lot. While on the property, live GPS tracking helps sales associates find particular vehicles quickly, determine fuel levels, and more.
- Increasing Use with Subprime Loans. As subprime loans increase, the use of GPS tracking devices for car dealers is rising. This trend ensures vehicles in default are easier to locate and repossess.
Car loan statistics from this article were gathered from Finder.com
Where Do Car Dealerships Put GPS Trackers?
Buy here, pay here dealerships own the car until you make the final payment and the title is transferred to your name. So if you miss a payment, they have the right to repossess the vehicle. This has many people wondering, "Where do car dealerships put GPS trackers?" The answer: dealerships often hard-wire a GPS tracker directly to the car’s 12-volt system. Why? Because it draws power from the vehicle’s battery, meaning the dealership doesn’t have to worry about battery life and can quickly locate the car if needed. Below are the main spots where a dealership might hide a GPS tracker for repossession purposes.
Under the Dashboard:
- Why it’s there: It’s out of sight.
- How to remove it: Look under the dashboard and unclip the tracker. Need assistance? Your local mechanic can help.
In the Engine Compartment:
- Why it’s there: It’s a secure place that’s difficult to access.
- How to remove it: Open the hood, locate the device near the engine, and disconnect it.
Connected to the OBD-II Port:
- Why it’s there: For real-time data processing.
- How to remove it: Locate the OBD-II port, usually under the dashboard, and unplug the tracker.
Why Would a Car Dealership Place A Tracker On Your Car?
Dealerships use these tracking systems to keep tabs on vehicles if there’s a payment default, making it part of their repossession strategy. Concerned about your privacy? Don’t worry—they’re legally required to let you know about this when you buy the vehicle. Check out the infographic below to see common spots where a car dealer might hide a tracker.
How Can You Remove the Tracker?
Though the above guidelines outline how to locate and remove the GPS vehicle tracker, it’s essential to consult your financing agreement first. Why? Because removing the tracker might be considered a breach of your agreement, leading to legal consequences. Therefore, always consult your agreement or a legal professional to understand your rights and responsibilities.
You’re now armed with knowledge about where to find a tracker and why it might be there. Planning to remove it? Always consider the legality and the potential effects on your relationship with the auto dealer. Want more guidance? Your local mechanic or a legal expert can provide personalized assistance.
Best GPS Tracker Detector – Locate Any GPS!
Do Leased Cars Have Tracking Devices – Everything You Need To Know
While it’s not a universal practice, many leased cars do come with GPS trackers installed by the dealership. In this section, we’ll explore why car dealers use GPS trackers as part of their in-house financing. More importantly, what you need to know about leasing a car with a tracking device.
- GPS trackers are often installed in leased cars by dealerships as part of their in-house financing agreements.
- These devices help dealerships track the vehicle’s location in real-time, which can be helpful if the buyer fails to make payments.
- If the buyer falls behind on payments, the dealership can use the GPS car tracker to locate and repossess the vehicle.
- Dealerships are required to disclose the presence of a GPS tracker in a leased vehicle to the buyer. Therefore, ask about it before signing the lease agreement.
- If you are concerned about privacy, understand that this may not always be an option if you are taking a loan through a car dealer.
Remember, it’s important to understand that many leased cars come with tracking devices installed by the dealership. If you’re uncomfortable with the idea of a tracker in your leased vehicle, you can consider purchasing a car instead or negotiating with the dealership to have the tracker removed.
Do all car dealerships use GPS trackers? Not necessarily. Each dealership decides who gets loans and whether to include GPS in their cars. Yet, you can bet on seeing more GPS in leased cars soon. Why? Car GPS trackers are getting smaller, more affordable, and more efficient. Not to mention, when cars have GPS for repo it makes those vehicles in default easier for the car dealership to find.
Do Cars Have GPS For Repo – Frequently Asked Questions
Can You Hide Your Car From Being Repossessed?
First, hiding a vehicle that is in default from a repossession company is not recommended. With that being said, a person wanting to hide a car from being repossessed would want to make sure the live GPS tracker connected to the automobile is removed or disabled. Those without an electrical background can take their vehicle to a stereo/audio installation business to have them determine where the real time GPS tracker is hard-wired. Another option would be to invest in a GPS bug detector that can pick up on signals received and transmitted by the GPS vehicle tracker.
Is It Illegal to Remove a GPS Tracker from a Financed Car?
Yes, removing a GPS tracker from a financed car can be illegal. Financing agreements often include terms that allow the lender to use a tracker for repossession purposes. Taking off the device could be considered a breach of that agreement. If you’re unsure about your rights or have concerns, check your contract or consult with a legal professional before taking any action.
Can a Finance Company Put a Tracker on Your Car?
Yes, a finance company can place a tracker on your car, especially if you’re considered a high-risk borrower. This helps them locate your vehicle easily if you fall behind on payments, making repossession simpler. Have questions about their tracking system? Reach out to your finance company directly to understand how they use tracking devices and manage your data.
What Are Some Ways I Can Hide My Car from the Repo Man from Taking It?
Some methods people use include parking the car in a locked garage or at a friend’s house. However, you should know, hiding your car from the repo agent may lead to legal consequences. Unfortunately, trying to hide your vehicle this way will only delay the inevitable. The best advice? Focus on working out a payment plan or negotiating the remaining balance with your lender.
What Happens If You Miss Payments and a Repossession Company Comes for Your Car?
If you miss payments, the repo company might come to repossess your car. Once you default on the loan, the auto repossession process begins, which may include using GPS for the repo. A tow truck might arrive, and the repo agent may seize your vehicle. However, there are always opportunities to keep your vehicle even if you are late on payments. Talk to your lender, explain your situation, and seek to negotiate a new car payment plan to avoid repossession.