The Buy Here Pay Here industry dates back to the savings and loan crisis of the early 1970s as a way for auto dealers to accommodate customers who were increasingly unable to obtain conventional credit. Nearly 50 years later, the industry has been revolutionized by the use of GPS tracking devices.

GPS devices and auto financing

While BHPH freed dealers to expand their customer base, it also burdened them with the financial risks of loan defaults. Many dealers are now outfitting vehicles with GPS tracking devices to remind buyers to make their payments. They also serve to protect the dealer’s investment in the extreme case of repossession becoming necessary.

It’s a fact that financial institutions are more receptive to extending loans when GPS tracking systems will be monitoring the vehicles. The end goal is to change the behavior of customers who are poor risks, enabling them to rebuild their credit.

When GPS devices are installed on a vehicle, sellers and lenders are required to disclose this information to the customer. Many even have the buyer sign off on acceptance of the condition. Of the more than two million autos in the United States equipped with this type of GPS tracking system, many of those have been installed by Buy Here Pay Here companies.


The capabilities of these installed GPS devices is that they can monitor a customer’s actual travels to ensure they are going to work and not taking the vehicle outside any virtual boundaries.

In addition, should a vehicle Lessee not make their payments there is a remote shut-off feature that will not allow the car to re-start once it is turned off. Hence, prompting the Lessee to call, make payments and get the car starter enabled again. Thus, helping to change the payment behavior of the Lessee.

Just as GPS devices revolutionized Buy Here Pay Here, GPS Trackit has taken fleet tracking software to a whole new level. Contact us to learn more about robust features such as on-demand reporting and real-time alerts.