New Data: Billion-Dollar Used Car Industry Problem Curtailed by GPS Technology
In the year since impound fees cost the used car industry $1.1B, new data shows maturing technology has made a positive impact
IRVINE, Calif., Oct. 10, 2019 /PRNewswire/ -- In its latest findings, Spireon, the vehicle intelligence company, has reported that in 2019, significantly more used vehicles have been recovered expeditiously from impound lots than in 2018. This faster recovery time has resulted in an estimated average savings of $107 per vehicle impounded.
Spireon data indicates that in 2019, 27.8 percent more vehicles were recovered from impound lots in less than a day. Meanwhile, vehicles accruing mounting fees in excess of one week to more than a month has improved by 27 percent since its 2018 findings.
"Last year's data was pulled during a period when impound lot recovery technology powered by GPS was still in its early stages and did not yet have a strong foothold among dealers," said Brian Deeley, Sr. Director, Product Management at Spireon. "However, since then, through gradual adoption and education, we are seeing the fruits of our labor pay off in the form of significant savings for both independent and BHPH dealers."
Spireon's latest findings, recently published in the latest annual NIADA Used Car Industry Report, are the second iteration of data analysis gathered from dealer surveys and Spireon's NSpire IoT platform data tracked from nearly 4 million GPS-equipped vehicles. In its original 2018 report, the company identified the critical need for impounded vehicles to be recovered as early as possible before fees rise to disproportionate levels. In 2018, there were an estimated 76,000 impounds per day nationwide, nearly half of which stayed on an impound lot for four days or more — 22 percent at 15 days or more. In all, dealers, lenders, and consumers were left responsible for an astonishing $3.04 million in impound fees each day, or $1.1 billion per year. This year's data depicts promising trends.
Other datapoints of interest in the 2019 report show Alaska (7.37 percent), Rhode Island (6.16 percent), and Ohio (4.86 percent) as having the highest impound rates in the nation. South Carolina, Oregon, and North Carolina lead the pack with the highest average time in impound, topping out at 20 days.
To learn more, download the full report here.
About Spireon
Spireon, the vehicle intelligence company, is the leading provider of aftermarket telematics solutions in North America. By equipping cars, trucks, trailers and other mobile assets with GPS devices and sensors, Spireon turns any vehicle into a connected vehicle. Award-winning products GoldStar, Kahu and FleetLocate deliver 24×7 asset visibility and actionable insights to auto dealers, lenders, transportation companies, service fleet managers, rental car companies and consumers to increase safety and productivity, boost profits and protect assets. Spireon's NSpire IoT platform powers all Spireon solutions, supporting nearly 4 million active subscribers and processing more than 1 billion data events each month. Learn more at www.spireon.com.
For more information, contact:
Havas Formula for Spireon
[email protected]
619-234-0345
SOURCE Spireon, Inc.
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