Credit unions looking to increase their auto market share should ask themselves, “How many first time buyers or credit challenged members am I losing to banks or special auto finance companies?” If the answer is even one member, such institutions may want to consider new advances in risk mitigation solutions such as GPS and payment reminder technology.
Although GPS technology has been around for well over a decade, the ability to incorporate a payment reminder feature and monitor credit-challenged members is relatively new. A GPS monitoring/payment reminder device — which is only about the size of a deck of cards — attached to the member’s vehicle, coupled with a user friendly, dependable, and sophisticated backend system provides a win-win solution for the credit union and the member.
Through full disclosure, the member is aware of the GPS monitoring and payment reminder device. More often than not, the member is happy to add the device because they understand that without it they would not be able to procure an auto loan. The credit union has the opportunity to mentor the member by reminding them of their upcoming payment via an audible ding or buzz a few days prior to the payment date, thus helping the member repair or build their credit along with fostering member loyalty and future lending opportunities.
If you find yourself intrigued by the idea of maintaining, monitoring, and mentoring first time or credit-challenged members and are considering a GPS/payment reminder solution, it is important to ask the following questions about the GPS provider:
Is the company financially stable?
GPS/payment reminder companies come and go. Consider the effect on the business model if you have several vehicles in the field with devices that are immediately rendered useless because the supporting company quits the business.
How strong is the technical infrastructure supporting the product?
As credit unions peel the onion, they may find that there’s little of substance behind a company's fancy marketing materials. Make sure the institution understands exactly who it is dealing with, and understands the various middle-men that may be mission-critical to the GPS company’s ability to provide service and support.
Does the cost of the device seem too good to be true?
When looking at device costs, make sure to compare apples to apples. Many low-cost quotes do not include data usage or necessary features to aid in managing these vehicles. Or worse, some quotes are offered at such low rates that they are unsustainable. In these cases, the company is hoping to add enough volume to make the numbers eventually work.
Could the credit union benefit from continued product enhancements designed to streamline operations?
Over the course of several years, GPS/payment reminder solutions have been shaped and molded to streamline the operations of several of the leading lender groups in the country. It is important that the chosen partner has a platform with patented flexibility, enabling the credit union to turn its good ideas and suggestions into continued product enhancements.
Inilex, Inc. is a 10 year veteran in GPS technology and has leveraged its experience to provide a world-class solution for the Special Finance market. Inilex started in Special Finance by winning the business of DriveTime, one of the largest Special Finance dealers in the US. Selecting a GPS/payment reminder provider can be a daunting and confusing process. Inilex prides itself as not just a vendor, but as a partner, providing a full solution to fit your specific business requirements and goals. Inilex, Inc. was just named one of Forbes' Most Promising Companies for 2013. This prestigious award recognizes 100 companies with strong growth, quality management, and key partnerships.
For a GPS partner who guarantees 100% reliability, call InilexGPS at 888-973-1577 or visit us at www.Inilex.com.