Will a GPS Tracker Be Installed When Financing a Car Purchase?
2 Answers
Not all financed car purchases require the installation of a GPS tracker, as it is generally only required when the vehicle is used as collateral for a loan. Below are the details regarding vehicle collateral loans: 1. GPS-based Collateral Loan Services: After completing the collateral procedures, the customer can continue using the vehicle. Features include: (1) No need to surrender the vehicle; freedom to drive. (2) Simple procedures with same-day fund disbursement. (3) Flexible loan terms and repayment options. 2. Surrender-based Collateral Loan Services: After completing the collateral registration procedures, the customer's vehicle must be stored in a designated garage. Features include: (1) Low fees, simple procedures, and quick fund disbursement. (2) Flexible loan terms and repayment options.
Last time I financed a car purchase, I did encounter this issue. The lending company required a GPS tracker to be installed in my car as a safeguard for their funds—in case I defaulted on payments, they could quickly locate and repossess the vehicle. However, this isn’t required for every borrower; those with good credit usually don’t need one. The tracker is typically hidden, such as under the dashboard or inside the seat, without interfering with driving. But for some car models, installation might trigger false alarms, like when the GPS signal is unstable. After completing my payments, I had them remove the device. I advise everyone to carefully read the contract terms before signing and clarify whether a tracker is involved to avoid privacy concerns. Nowadays, many places have privacy laws requiring full transparency, but refusing might mean not getting the loan. Overall, as long as you make payments on time, the tracker can actually serve as an anti-theft measure—if your phone dies and the car gets stolen, the tracker could come in handy.
