MADISON HEIGHTS, Mich. -

Guidepoint Systems believes it found a legal way to transform a GPS payment assurance device into a potential profit center for buy-here, pay-here dealerships.

The basis of its recently launched GPS-based solution, Recover It, is that it not only incorporates payment assurance technology, but the tool can also allow a dealer to sell highly valued stolen vehicle recovery services to credit-challenged customers.  

The company explained the new Recover It solution can let BHPH dealers leverage Guidepoint’s GPS-based payment assurance technology, which provides payment reminders, starter-interrupt and GPS tracking. That technology can now be used to offer customers Guidepoint’s award winning stolen vehicle recovery service. 

Launched in 2002, Guidepoint sought to become a leader in stolen vehicle recovery services. Its solutions already are sold at more than 2,500 dealerships nationwide.

Guidepoint looks to integrate GPS and advanced wireless technology, the Web and constantly operating response centers to deliver highly effective stolen vehicle recovery as well as driver convenience services.

The company contends it has a 98 percent recovery rate with most vehicles recovered in less than two hours.

“There’s no shortage of companies that can make a low-priced black box with GPS capabilities and zero in monthly fees,” declared Werner Scherz, vice president of Guidepoint’s finance channel. By adding highly valued services into the mix, we’ve created a total solution that can be a profit center for dealers rather than a cost center.

“Most importantly, the customer gets some great benefits, including Guidepoint’s award-winning stolen vehicle recovery service and, in many cases, a discount on auto insurance. This is truly a win-win for both dealer and customer,” he continued.

Guidepoint emphasized that it has worked with a top law firm in the BHPH industry to examine the legality of selling services delivered in concert with a payment assurance device. 

Company executives contend it’s not a secret that GPS-based payment assurance devices have helped BHPH dealers improve collections and reduce repossession costs during the past decade. They indicated that the device can add $150 to $175 to the cost of each transaction, given the price of the module, online tracking and installation.

Guidepoint pointed out those costs haven’t been recoverable because charging the customer for a payment assurance device is illegal according to the company’s legal experts. A charge for a device required by the seller or finance company effectively becomes a finance charge under the Truth in Lending Law.

“We’ve done our homework,” Scherz stressed, adding that Recover It is the culmination of Guidepoint’s experience in diverse sectors of the GPS business. 

“We’ve done stolen vehicle and driver convenience services for a decade, and have been establishing ourselves in the BHPH space for about five years,” Scherz stated. “What we’ve realized in the buy-here, pay-here business is that most dealers don’t want to be in the repo business. They want to be in the business of selling cars and making loans.

“So we’ve created services that allow dealers to do a better job at collecting loans and building a positive relationship with their customers. Recover It is a natural next step in that progression.”

Guidepoint thinks dealers are turning more to this technology based on a recent study. The company cited findings from Auto Dealer Monthly that surveyed the top 50 independent retailers. Turns out, 28 percent of those dealers use GPS and/or starter-interrupt technology with Guidepoint serving as one of the top providers.

Furthermore earlier this year, Guidepoint was also awarded the 2010 North American Frost & Sullivan Award for Customer Value Enhancement for establishing itself as the preferred vehicle tracking solutions supplier to both the OEMs and the aftermarket in North America. 

“Over the past decade, we have developed a range of solutions and best practices for new car dealers, automotive finance companies, BHPH dealers, fleets and other markets,” insisted Rand Mueller, Guidepoint’s founder and chief executive officer. 

“In each market we serve, we bring a core philosophy of innovation, value and service. While we design and make great technology, we are ultimately in the business of providing services that customers need and desire,” Mueller added.

For more information about GuidePoint Systems Dealer Solutions, management can visit www.gpsdealersolutions.com or contact Scherz at (877) GPS-FIND, ext. 3148.