With the economy in flux and unemployment rates skyrocketing across the country, one of the consequences will most certainly be defaults on car loans. Unfortunately, defaulting on a car loan can have negative consequences on your credit score, but also you are very likely to have the vehicle in question repossessed. Although used car dealerships such as Carmax offer affordable vehicles and low-interest rates (depending on the buyer’s credit history), nearly every car dealership that provides its own financing has to protect its assets from a potential default. This is the reason why car dealerships such as Carmax are often turning to GPS tracking devices for repo.
Carmax Car Loan
Can A Car Dealership Track Your Car?
Once a person secures an auto loan, finds the vehicle they love, makes the purchase, and drives the car off the lot with that brand new automobile everything should be fine. For the car dealership, however, they are not out of the woods until that buyer pays off the auto loan. The majority time that is exactly what happens, but sometimes car buyers fall into financial hardship and can’t afford to make auto loan payments. This is when a car dealer such as Carmax has to proceed with vehicle repossession. And the tool that helps them quickly locate the vehicle is a real time GPS tracker.
Real Time GPS Tracker For Car Repo
In order to quickly locate and secure a vehicle in default car dealerships use real time GPS trackers. The tracking devices are either hard-wired to the automobile or are wireless systems that can be hidden literally anywhere on the vehicle. What these security devices do is track a vehicle’s location 24/7, which allows a company such as Carmax to quickly find and repo a car if the person stops making auto loan payments.
But can CarMax track your car!?
Yes because technically until you pay off the auto loan the vehicle is not yours. The vehicle is still the property of Carmax or the car dealership you purchased the automobile from. That means they can legally equip a real time GPS tracking device to that asset.
What Happens When Carmax Repos Your Car?
So what exactly happens when Carma repos your car? The process is pretty simple:
- Fail to make auto loan payments and you will be in default. This is not good.
- Once in default, Carmax can activate the real time GPS tracker to locate the vehicle.
- Carmax hires a repo man to use the GPS tracking data to find and repo the car.
- The auto loan default will be reported to all credit bureaus and negatively impact your personal credit.
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Sage is a freelance writer with a background in information technology.