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Auto Dealers Adopting GPS for Profitable F&I and Lot Management, According to New Study by SkyLINK
[January 23, 2015]

Auto Dealers Adopting GPS for Profitable F&I and Lot Management, According to New Study by SkyLINK


GPS technology is surging in popularity among car dealerships, which are increasingly using it for in-house applications such as lot management and stolen vehicle recovery, according to an auto industry study released today by Inilex, the makers of SkyLINK. The study also found that dealers consider GPS-based theft-recovery devices one of the highest-value aftermarket products.

The study of 306 new and used car dealers across the United States covered the challenges dealerships are currently facing, which are increasing despite their confidence in the overall auto industry.

Lot Management Eludes Many Dealers

Lot management is still a challenge for dealers, with one-third reporting they have been unable to locate a vehicle when preparing to take a customer for a test drive, and a whopping 86% encountering a dead battery when getting ready for a test drive. Additionally, 22% of dealers had at least one vehicle stolen in the past year. The study found that investments in pre-loaded theft-recovery devices appear to pay off, as 33% of dealers were able to recover a stolen vehicle using a GPS device.

"Poor lot management and stolen cars are more than hassles for dealers - they cause missed sales opportunities and significant financial losses," said Michael Maledon, CEO of Inilex. "With telematics technologies readily available to help locat vehicles on the lot, recover a stolen car or gauge battery levels, these issues are easily preventable. Dealers with sophisticated inventory management systems can focus on selling cars and valuable aftermarket products, not dealing with fire drills."



Aftermarket Optimism High, But Tempered by Regulatory Pressure

Most auto dealers are optimistic about the market conditions for aftermarket sales - 51% believe the market opportunity for aftermarket product sales is greater than it was five years ago, while just 15% believe it is smaller, although they report consumer and federal challenges.


When asked to identify their single biggest F&I sales challenge, auto dealers highlighted lack of financing, and unwillingness by customers to purchase ancillary products which they perceive as lacking tangible benefits. In addition, plans by the Consumer Financial Protection Bureau (CFPB) to increase regulation of F&I products is changing the way dealers dealer approach F&I sales - with more than one in three dealers saying they will change their F&I approach or products offered to ensure value and profitability.

Dealers named GPS theft-recovery devices as the second-most valuable product they can offer customers, after service contracts. Dealers also noted that GPS theft-devices deliver high value to their F&I departments.

"With the CFPB placing more and more scrutiny on rate mark-up and the sale of ancillary products, it has become increasingly important for dealers to assess if the products they're providing offer legitimate value to the customers, and if the company is reputable and financially stable enough to back their products," said Maledon.

About Inilex

Headquartered in Phoenix, Inilex® is an Inc. 500|5000 company and the industry-leading provider of intelligent telemetry solutions. It combines the power of the Global Positioning System (GPS) with the flexibility of a best-in-class wireless messaging system to develop telemetry solutions for businesses and consumers alike. Inilex is online at www.inilex.com. The company was named one of America's Most Promising Companies by Forbes in 2013 and 2014, a Deloitte (News - Alert) Technology Fast 500 company, and its technology has won numerous awards including the Connected World 100 for four consecutive years.


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