Vehicle leasing is currently burgeoning and the number of cars leased on the global car aftersales market every year has grown from 8 million in 2019 to 12 million in 2021. The market is expected to continue to grow, as consumers look for more affordable and flexible options when paying for new vehicles.
The opportunity for dealerships is clear, but it comes with increased risk since car financing is a notoriously capital-intensive sector where cash flow and timely payments are critical to ensure businesses survive. Interruptions to cash flow from payment delays and defaults can ruin whole businesses, which is why dealers, especially BHPH (Buy Here Pay Here) dealerships, and companies operating in vehicle leasing need to do everything possible to protect their assets.
IoT and telematics can play a significant role in providing this protection, and assets can be tracked in real time making recovery much more straightforward should customers default on repayments. When standard GPS tracking is packaged with additional tools such as the ability to disable engines remotely, to control with geofencing, to receive data from the vehicle’s trackers, telematics platform becomes an essential tool for the vehicle leasing market in dealing with missed payments or vehicle theft.
Streamlined telematics, customized for the real needs of the vehicle leasing sector
Historically, the cost of implementing a telematics solution was prohibitive for dealerships and the vehicle leasing market, since the solutions were designed for much more complex networks and included functionalities such as fuel management, driver scoring etc.
But now fleet tracking and management software experts are launching solutions that are designed for the specific needs of dealers and the car leasing sector. Wialon, one of the largest global fleet management platforms, which connects over 3.5 million vehicles and assets worldwide, has launched a new niche solution, streamlined to solve their specific challenges.
LeaseControl powered by Wialon is a GPS tracking software for the leasing sector that retains the most valuable features, such as GPS tracking, geo-fencing, remote operation, automatic notifications and high-quality 24/7 technical support. It provides the tools to tackle the most pressing challenges faced by dealers, namely non-payment, auto theft and vehicle recovery. Businesses pay for the functionality they need, without extra expenditure on unnecessary add-ons, so telematics now become a viable solution for dealerships and the vehicle leasing sector.
Does LeaseControl removes the stress from fleet tracking?
Here are the main advantages of the LeaseControl solution that bring peace of mind to the car leasing sector:
- Real-time GPS tracking finds any needle in any haystack. The platform receives data from the vehicles’ trackers, providing access to a car’s exact location in real-time. It gives users peace of mind, since they are always aware of their asset's exact location, making recovery of any vehicle simple, should they ever need to do so.
- Complete visibility and control with geofencing. It is common for the terms of lease agreements to stipulate that a financed car cannot leave a specified area, such as a country or a state territory. A vehicle leaving such an area could be an indication that the borrower is attempting to avoid payments, or even steal the car. To mitigate such risks, geofencing allows notifications to be set up for when a vehicle enters or exits a specific area, so owners have complete visibility of their assets.
- Remote engine shut-off puts the asset owner in control. One of the most effective tools telematics can provide is the ability to turn off a vehicle’s engine remotely. Disabling the engine is a very effective way to prevent the asset’s owner incurring financial losses, if and when a borrower forgoes loan payments or exits a geofenced area. The best solutions provide multiple ways to disable a vehicle remotely, such as blocking the engines of debtors at the end of the month, or disabling an engine manually should suspicious activity be detected or a vehicle leave a predetermined geo-fenced area.
- A solution provided by a trusted vendor. In this crowded market, it is crucial to consider the vendor itself on the lookout for a software. Choosing a market-proven solution from a trusted and reliable company is a critical consideration, as the impact on business can be significant. LeaseControl is a brand-new product developed by Gurtam, a European software provider of telematics and IoT solutions with 20 years experience. Gurtam is a well-known vendor who prioritizes efficiency and business value, and has the client's endorsements and reviews to prove it.
Respond effectively to missed payments and theft
There’s no problem in selling a car to someone with poor credit – the problem is to get payments from them and prevent auto theft. However, a dealership can never be sure that customers will pay for financed cars. Unfortunately, missed payments and unrecovered vehicle thefts are a typical risk in the segment.
Inevitably there will be times when customers miss payments and ultimately break the terms and conditions of the lease agreement. In these cases, the leasing company will want to recover its asset and this is something that can be challenging if there is no tracking device installed.
In addition to missed payments, dealers and car leasing companies face the equally important risk of vehicle theft. Again, GPS tracking helps protect the asset owner and it is possible to establish a geo-fenced area so the leasing company is automatically notified should the vehicle leave a predetermined area such as crossing a state line or international border. In these instances, software solutions come into their own and it is possible to operate the vehicle remotely and disable the engine so the vehicle cannot be driven.
“The high growth that is predicted to continue in the vehicle leasing sector means asset protection is more important than ever. LeaseControl is a cost effective, reliable and proven telematics solution tailored to the sector. Any dealers looking for peace should reach out to a Wialon partner in their region,” says Aliaksandr Kuushynau, Head of Wialon.
