AUTOMOTIVE SOLUTIONS GROUP – WHITE PAPER
How Using the Right GPS Tracking
Device Can Expand Your Reach
With Less Risk
WHITE PAPER
GoldStarGPS.com
Spireon’s CDMA Talon GPS Tracking Device:
Driven by Quality
White Paper Presented by Spireon Automotive Solutions
The Growing Demand for GPS Vehicle
Tracking Systems
After years of declining sales, the automotive industry is once again on the rise. Fueling much of the
resurgence in vehicle sales, is the recent growth in subprime automotive financing. So what is fueling
the increase in subprime auto loans?
In the wake of the economic crisis, increasing numbers of car buyers found themselves saddled with
poor credit resulting from job loss, foreclosures, bankruptcies, and other financial woes. While still
struggling with low credit scores, many of these customers are moving toward financial recovery.
They’ve found new jobs and careers, are earning decent salaries, have wiped the slate clean and are
lowering their debts.
Despite this progress, these credit-challenged customers still cannot qualify for traditional auto finance.
And yet, these customers still need vehicles. To meet that demand, increasing numbers of dealerships
and lenders are approving more subprime auto finance, and going deeper and deeper in the process.
For more information, please visit GoldStarGPS.com
or call 1-866-655-8825
©2014 Spireon, Inc. All Rights Reserved.
Subprime Goes Deeper
Just take a look at the numbers. According to a recent
Experian study, in the last year we’ve seen a nearly 18%
increase is subprime financing for new vehicle purchases, and
a nearly 40% increase in deep subprime lending to consumers
with 600 FICO scores and lower. While not as drastic, this
same trend applies for used-car financing — with a nearly 9%
increase year-over-year in deep subprime lending, and a 5.3%
increase in subprime lending. Consumers burdened with the
lowest credit scores — those considered nonprime, subprime
and deep-subprime — are seeing higher rates of approval
for auto loans, with a 13.6% increase for new car loans and a
5.47% increase for used car loans in 2012 over 2011.
This trend toward deep subprime lending appears to be
continuing. Loans to deep subprime car buyers jumped in the
first quarter of this year — 3.45% for consumers with credit
scores of 550 and lower, to be exact. On the other hand, loans
to customers with excellent credit scores of 740 or higher
dropped off by 3.14% in Q1 as compared to this time last year.
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Despite what their low credit scores
may indicate, the large segment of
credit-challenged consumers remain
responsible members of the middle
class. They have good jobs, earn
decent salaries, have lowered their
debt, and for the most part, pay
their bills on-time.
Now let’s take a look at some of the repercussions of this
increase in deep subprime financing. Q1 numbers showed
a 1.3% increase in 30-day loan delinquencies, a significant
12.4% increase in 60-day delinquencies, and a whopping
16.9% increase in repossessions over Q1 of last year — up
from just 0.43% in Q1 of 2012. And while repossession rates for
banks and credit unions were down from last year by 14.9%,
repossession rates for finance companies was up by 52.1%.
In the last year we’ve seen a nearly 18% increase in subprime financing
for new vehicle purchases, and a nearly 40% increase in deep subprime
lending to consumers with 600 FICO scores and lower.
©2014 Spireon, Inc. All Rights Reserved.
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Controlling the Risk with
GPS Tracking
As subprime auto lending continues to gain momentum
and loans dive deeper, the associated risks continue to rise.
Dealerships and lenders who offer subprime auto finance
should be prepared for an increase in delinquencies, defaults,
repossessions, collection staff time and resources — all of
which come with significant costs that cut into profitability.
To mitigate these risks and costs while saying yes to more
customers, increasing numbers of dealers and lenders
across the automotive finance industry are adopting GPSbased vehicle tracking and collateral management systems.
According to a recent NABD survey, 46% of surveyed BHPH
dealers said they used a disabler product with a payment
reminder, while 36% said they used GPS tracking systems
equipped with payment reminder devices.
The most effective of these systems enable dealerships
and lenders to track the location, movement and status of
high-risk vehicle collateral in real time, making recovery
and repossession of delinquent assets significantly faster,
easier and more cost-effective. The more advanced GPS
vehicle tracking and collateral management systems include
additional features such as payment reminders, starter
disablers, and alerts triggered when vehicles enter or leave
specific geographic boundaries and are stopped for extended
periods. These features further reduce repossession costs,
while also promoting on-time payments that help customers
stay in their vehicles and rebuild their credit.
Dealerships and lenders are seeing results from their GPS
vehicle tracking and collateral management systems.
According to another NABD survey, 74% of financers said
that using a GPS vehicle tracking and collateral management
system reduced delinquency rates by more than 10%. For a
large lender, this means hundreds of thousands, if not millions,
of dollars in collected revenue.
©2014 Spireon, Inc. All Rights Reserved.
74% of financers said that using a
GPS vehicle tracking and collateral
management system reduced
delinquency rates by more than 10%.
Dealerships and Lenders using Spireon’s GoldStar GPS
— the industry’s leading GPS collateral management and
vehicle tracking solution — have reported significant savings
as a direct result of GPS-based vehicle tracking. Of these
customers:
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•84% have reported reduced delinquencies
•78% have been able to finance customers with lower credit
•68% have been able to finance customers with smaller
down payments
•77% have seen a significant improvement of customer
credit ratings
All of which translates into lower risk, lower losses and lower
costs for our customers. In fact, Spireon’s solutions have
helped vehicle finance customers increase their return on
capital by 87%.
Based on these numbers, it’s no wonder the demand for
high-quality, proven GPS vehicle tracking and collateral
management systems is escalating. Today’s automotive
financers need solutions that easily scale to handle their
growing demands and subprime automotive business. They
need solutions that can be quickly adopted and deployed
on a wide scale, while easily adapting to the specific needs
of dealers, financers, banks and credit unions. And they need
solutions that provide dependable, reliable performance.
Spireon’s GPS-based collateral
management systems have helped
vehicle finance customers increase
their return on capital by 87%.
Without reliable, high-quality GPS devices in place, collateral management systems simply cannot deliver the real-time data needed to reduce
risks and costs associated with subprime auto loans.
©2014 Spireon, Inc. All Rights Reserved.
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Talon Takes the GPS Device to the Next Level
Employing GPS vehicle tracking and collateral management systems can have a significant boost on
the bottom line for financers offering subprime automotive finance. But those bottom-line results
depend largely on the quality of the system — not just the software and interface, but the actual GPS
devices used with the system.
Now in its 11th generation, the Talon, featuring next generation CDMA wireless technology, reflects a
decade of continuous innovation and refinement aimed at meeting the evolving needs of the automotive finance industry while delivering the utmost reliability, stability, durability, and cost-efficiencies of
any device on the market. This unrelenting pursuit of innovation has resulted in a number of industryfirst and industry-leading enhancements across multiple performance areas.
YOUR CDMA CONNECTION
The 11th generation Talon GPS device operates on the latest, ultra-reliable CDMA wireless networks.
Our CDMA technology delivers a range of competitive advantages to our customers, including:
•Faster Networks
CDMA provides better network access and data speeds, allowing dealers to locate and recover their vehicle collateral faster.
•Ultra-Reliable Connections
CDMA offers a much more reliable connection, keeping dealers continuously connected to their
collateral in real-time.
•Wider Reach and Coverage
CDMA-enabled Talon provides an extended reach and better coverage — even in rural areas — than other devices on the market.
•Future-Proof Investment
CDMA-enabled devices deliver stronger, more reliable performance today while preparing for the wireless advances of tomorrow. CDMA devices will work with 3G CDMA networks. Dealers who
purchase 3G GSM devices, on the other hand, will be forced to invest in all new devices just a few years down the road.
•Double the Data Plan
We’ve more-than doubled the data plan on the 11th generation Talon to bring our customers more features and functionality as their businesses grow.
©2014 Spireon, Inc. All Rights Reserved.
TAMPER-RESISTANT AND RUGGEDIZED DESIGN
Much thought and detail has been put into the physical design of the Talon to ensure reliable performance
that keeps our customers continuously connected to their critical data. Boasting a sleeker profile and
smaller footprint, the latest generation Talon device is built to resemble part of original equipment
inside the vehicle. This deters people from identifying it and tampering or removing it.
The Talon is also the only device on the market that is ultrasonically welded together and sealed. This
not only adds protection against moisture and dust, but deters tampering as well.
The Talon’s mechanical design provides a high degree of durability and resistance to a wide range of
environmental conditions, including extreme heat and cold temperatures, moisture, humidity and dust.
SUPREME SCALABILITY
The latest generation of Talon has been engineered to provide a highly scalable platform that allows us
to easily and quickly add features and functionality based on our automotive finance customers’ specific
needs. This scalability also enables us to quickly reuse and adapt Talon for specific segments within the
automotive finance industry, including BHPH dealerships, franchise dealerships, automotive finance
companies, banks and credit unions — without the need for (or costs associated with) re-engineering
devices from the ground up.
EASE OF INSTALLATION
The Talon offers fast and simple installation, with minimal wiring to mess with and options for both an
external or internal antenna that allows for more covert installation of the device.
RESETTABLE INTERNAL FUSE
Many devices are prone to blown fuses when vehicle batteries are jump-started or when the battery is
replaced altogether. A device with a blown fuse can’t connect you to your vehicle data. To prevent this
from happening, the Talon is designed with a resettable internal fuse. In the event of a voltage spike up
to 90 volts, the fuse will automatically reset so communications will not be disrupted.
BATTERY PERFORMANCE
The Talon comes with enhancements that extend battery life and performance.
©2014 Spireon, Inc. All Rights Reserved.
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Certified Quality at a
Cost-Effective Price
Even with its wide array of industry-leading innovations and
enhancements, the Talon remains one of the most cost-effective
GPS tracking devices on the market. Due to our scale and
strong vendor relationships, we’ve been able to keep our costs
low by building a device from materials that meet and exceed
performance standards and expectations while also delivering
the feature sets our customers truly need.
The Talon was also the first device in the industry to become
PTCRB-certified, signifying that the device meets the standards
of multiple major wireless carriers in North America. This PTCRB
certification allows for future expansion possibilities. A quad
band GSM receiver, the Talon is able to go into Canada and
Mexico, with future reach potential into Central and South
America.
Talon customers rely on the device to capture and transmit
vehicle data — including location— reliably, accurately and
quickly. Talon offers the industry’s fastest time to warm fix rate
of 18 to 22 seconds. This means that the Talon quickly re-establishes communication with satellites and calculates the device’s position (or fix) on the ground, even after it’s been shut
off for several minutes or hours. In the event the Talon device
has been shut off for days, weeks, or even months, its cold fix
time is less than 40 seconds.
©2014 Spireon, Inc. All Rights Reserved.
DEALER’S CHOICE
Built with patented GPS technology,
Talon has all the required licenses
and certifications, including
stringent FCC certification. Talon
additionally meets TRP (Total
Radiated Power) and TIS (Total
IIsotropic Sensitivity) certifications.
Customers Demand Quality,
Which is Why They Demand Talon
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While meeting the highest federal and industry certifications,
Talon also meets the rigorous standards of our most demanding audience: our customers. To date, nearly 1 million units of
Talon have been shipped to customers — more than any other
device on the market. Our warehouse ships between 2,000 and
2,500 Talon devices a day, with an exceptionally low and Bestin-Class return rates.
When rare issues with the Talon do arise, our customer support
team has been quick to resolve them. Between the first and
third quarter of 2013, post-shipment customer support interactions decreased by 30%. In the same time span, our ability
to resolve these customer issues during the first phone call
increased from 90% to 95% after releasing the Talon.
This Best-in-Class resolution rate is a reflection of Spireon’s
commitment to providing world-class customer service. Our
number-one priority is the complete satisfaction of our customers — not only with the quality of our products like the Talon,
but with every interaction they have with our company and
our people. To achieve this high level of customer satisfaction,
we have expanded our warehouse and fulfillment capabilities,
added a dedicated order hotline, and ship 99% of our orders
the same day. We’ve also tripled our customer support team,
so customers can always reach a live, knowledgeable person.
To date, nearly 1 million units of
Talon have been shipped to customers — more than any other
device on the market.
Now in its 11th Generation, the Talon with CDMA technology, reflects
a decade of continuous innovation and refinement aimed at meeting
the evolving needs of the automotive finance industry while delivering
the utmost reliability, stability, durability and cost-efficiencies of any
device on the market.
©2014 Spireon, Inc. All Rights Reserved.
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Do Your Devices Pass the Test?
When comparing GPS-based collateral management and vehicle tracking systems, it’s important to
look at the whole solution the wireless technology supports — the architecture, the interface, the
software, and the hardware. Don’t take a vendor’s word at face value when they claim their devices are
the best on the market, or denounce competing devices as inferior in quality and performance. Ask the
vendor to show you the data that backs up their claims.
Our number-one priority is the complete satisfaction of our customers
— not only with the quality of our products like the Talon, but with every
interaction they have with our company and our people.
Automotive
Tech Solution Providers
20 Most Promising Automotive Tech Solution Providers
Spireon’s Automotive Collateral Management Platform Recognized as “Top 20
Most Promising Automotive Tech Solution Providers” by CIO Review
Spireon wins “Best M2M Business Intelligence Platform 2013” at the Battle of the
Platforms, hosted by TMC.
Spireon captures the Automotive – Buy Here Pay Here Finance and Specialty
Solution A-list in M2M award! – 2014 Compass Intelligence Mobility Awards
©2014 Spireon, Inc. All Rights Reserved.
To help you in evaluating GPS tracking devices, here are the key questions you should be
asking every provider you talk to:
1. What generation GPS tracking device is this?
2. What network does the GPS device run on?
3. What is the longevity of the device technology?
4. Has the device been tested to withstand extreme heat, cold, moisture and humidity? Ask to see those numbers.
5. Is the device sealed, or can it be easily pried apart?
6. Can you easily and quickly add the features and functionality I want without having to build a
new device?
7. Will the devices grow with your dealership and change in technology?
8. Does the device have protection in the case of a power surge?
9. Do you offer certified installation services?
10.Is your data and your customers’ data secure that the device collects?
11. How long is the battery life and what are you doing to extend it?
12. What licenses and certifications does the device have?
13. How many devices have you sold to date? How many do you ship in a day?
14. What is the return rate for your devices?
15. What is your resolution rate for device issues?
16. How quickly will my devices get shipped to me?
17. If I have a question or concern, will I be able to reach someone immediately?
At Spireon, we welcome your questions. We also invite you to put our Talon GPS tracking
device to the test.
Contact us today for a demo of our best-selling, high-performing Talon.
Call (866) 655-8825 or visit us at Spireon.com.
©2014 Spireon, Inc. All Rights Reserved.
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Leading Provider of GPS Tracking Devices
Call us today at: 1-866-655-8825 or visit: GoldStarGPS.com
17600 Gillette Avenue, Suite 100 . Irvine, CA 92614
Spireon.com
©2014 Spireon, Inc. All Rights Reserved.