Auto Dealers Adopting GPS for Profitable F&I and Lot Management, According to New Study by SkyLINK, from Yahoo Finance.
National trend study also reveals most dealers are bullish on aftermarket product sales, although new federal regulations are influencing their approach
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 locate 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.”