Understanding The Current BHPH Economic Climate
As the 2023 tax season for BHPH dealers begins to wrap up, dealers are continuing to monitor many aspects of their business other than simply just sales. As rising delinquencies continue to mount, many dealers across the country continue to fear the trend will continue and have a profound impact on their profits.
According to a report from Cox Automotive identified that “1.89% of auto loans in January were ‘severely delinquent’ and at least 60 days behind payment, the highest rate since 2006”. Another glaring statistic that is troubling dealers according to Moody Analytics is that roughly 9.3% of auto loans were represented by consumers who were 30 or more days behind on their payments and had low credit scores. Stats like these mean dealers need to take certain measures to ensure their business, and more importantly, their livelihoods are protected.
Best Practices When Managing Lien Title Changes During The Rising Rate of Repossessions
It is critical to be proactive rather than reactive with the anticipation of further heightened repo rates. Ensuring compliance and a proper record-keeping record of their entire default portfolio. For dealers, being transparent with your customers paired with making sure your Compliance Management System is paralleled with what is communicated to them is key. Don’t fail to remember that any action surrounding repossessions will also be reviewed thoroughly to ensure the action taken was just.
When you are managing your auto-lending portfolio documents and files, ensuring all are properly secured, but also organized in a proper manner is a must. This will unquestionably save an ample amount of time, but also any potential hurdles that may come your way. Furthermore, don’t rule out looking into a third-party vendor to help you expedite the processes surrounding the repossession titling process and to provide clear-cut transparency. Allowing you to naturally cure the staffing shortage present in today’s environment, this will also allow you to focus your efforts on selling more cars and creating the revenue stream you lost.
Why Dealers Need a Reliable & Reasonably Priced Vehicle GPS Tracking For Their Collateral
Without question taking the proactive approach to managing each title change requirement is key, one thing any BHPH dealer can’t forget is that none of this matters if they are not able to easily recover vehicles from those who have missed their payments. This is where trusted vehicle GPS providers, such as CallPass, come into the picture of your repossession process. When you apply a reliable vehicle GPS tracker to your vehicles, you gain the power to deliver these vehicles to your repo agents so they safely recover each vehicle without delay so you can get them in front of more customers quicker.
Don’t test your luck, make sure every piece of auto-lending collateral that leaves your lot is equipment and ready to ‘locate on demand’ to ensure your business doesn’t suffer. As fears of the escalated repossession rates continue, buy here pay here dealers have turned to the iGotcha Choice Plan for their tracking needs. An offering that provides them up to a certain amount of FREE GPS devices each month, predictable costs, and thousands in savings.
CallPass Is Proud To Revolutionize How BHPH Dealers View Paying For Reliable GPS Tracking
Hear from Jason Ashton, the CEO of CallPass, to learn more about this offering and to understand fully how it is transforming collateral protection and making day-to-day operations that much easier for dealers.
The likelihood remains that BHPH dealers will continue to face a heightened level of repossessions in the near future, making sure they take the necessary steps to prepare is key, whether that be through proper managing of lien titles or reliable GPS tracking. With CallPass, secure the best available pricing for vehicle GPS tracking, and don’t ever pay for A GPS device again. If you would like to learn how your dealership can benefit, reach out to the iGotcha GPS team or click the button above to have our skilled team members get with you. Don’t let your collateral drive off, protect your bottom line today.
