Your Cart


Do Cars Have GPS For Repo?

Do Financed Cars Have Tracking Devices, & Do Cars Have GPS For Repo?

According to auto loan statistics, there was over one trillion dollars of debt related to vehicle loans in the United States in the year 2017. Getting an auto loan has become easier, leading to an average new car loan of over $30,000 in 2017. Consequently, monthly payments are over $500. It’s alarming, and maybe you see why this is concerning. With defaults on the rise, similar to pre-2000s housing crisis trends, vehicle repossessions are increasing. This has led many car dealerships to take precautions by installing GPS tracking systems on new cars before you drive off. If you’re car shopping, be aware, as this trend continues to grow. Do cars have GPS for repo? Yes, and in this article we will go over everything you need to know about how car dealers use GPS tracking devices!

Do Cars Have GPS For Repo

How Car Dealerships Utilize GPS Tracking To Mitigate Risk In Financing High-Risk Loans

Many car dealerships provide new vehicles and financing. They make profits from these loans, so they must ensure only qualified people receive them. But there’s a problem. Dealerships are offering credit to those considered “high risk.” This has led to more subprime loans and, thus, more defaults and repossessions. What’s the solution? Real-time GPS trackers.

With these trackers, dealerships can know where a vehicle is always. On the lot, they help sales associates find cars quickly and check if they have gas. As subprime loans increase, so does the use of GPS for repo. If you buy from a dealer, expect your car to have a GPS, making repossession easier if you default.

So yes cars do have GPS for repo, and the use of GPS tracking devices for car dealers will most likely rise as more subprime loans hit the books and defaults naturally occur.

  • Monitoring High-Risk Loans. Many dealerships extend large lines of credit to “high-risk” individuals, leading to an increase in subprime loans and defaults. GPS tracking helps mitigate this risk.
  • Real-Time Vehicle Location. GPS trackers allow car dealerships to know where a vehicle is at all times, assisting in default security measures.
  • Assisting Sales Associates on the Lot. While on the property, live GPS tracking helps sales associates find particular vehicles quickly, determine fuel levels, and more.
  • Increasing Use with Subprime Loans. As subprime loans increase, the use of GPS tracking devices for car dealers is rising. This trend ensures vehicles in default are easier to locate and repossess.

Car loan statistics from this article were gathered from

Where Do Car Dealerships Put GPS Trackers?

Buy here pay here used car dealerships own a vehicle until it is paid off and the pink slip has been transferred. That means until the final payment is made a car dealership can repossess a vehicle if an auto loan payment is missed. But that might leave many people investing in a new car asking, “Where do car dealerships put GPS trackers?“. The answer is simple: car dealerships typically hard-wire a real time GPS tracker to the 12-volt system of the vehicle. Why? So the tracking device will pull power from the car’s battery. This allows the car dealership to never worry about battery life and provides the ability to quickly locate the automobile if a loan is in default. Below are 

Under the Dashboard:

  • Why it’s there: It’s out of sight.
  • How to remove it: Look under the dashboard and unclip the tracker. Need assistance? Your local mechanic can help.

In the Engine Compartment:

Why it’s there: It’s a secure place that’s difficult to access.
How to remove it: Open the hood, locate the device near the engine, and disconnect it.

Connected to the OBD-II Port:

  • Why it’s there: For real-time data processing.
  • How to remove it: Locate the OBD-II port, usually under the dashboard, and unplug the tracker.

Why Would a Car Dealership Place A Tracker On Your Car?

Dealerships place these tracking systems to monitor the vehicle in case of defaults on payment plans. It’s part of their repossession processes. Worried about your privacy? It’s crucial to know that they’re required to disclose this to you during the purchase process. Below is an infographic of where a car dealer might hide a tracking device.

Where To Hide A GPS Tracker On A Car

Related Article: Where Is The Best Place To Put A GPS Tracker On A Car?

How Can You Remove the Tracker?

Though the above guidelines outline how to locate and remove the GPS vehicle tracker, it’s essential to consult your financing agreement first. Why? Because removing the tracker might be considered a breach of your agreement, leading to legal consequences. Therefore, always consult your agreement or a legal professional to understand your rights and responsibilities.

You’re now armed with knowledge about where to find a tracker and why it might be there. Planning to remove it? Always consider the legality and the potential effects on your relationship with the auto dealer. Want more guidance? Your local mechanic or a legal expert can provide personalized assistance.

Best GPS Tracker Detector – Locate Any GPS!

Best GPS Tracker Detector


Related Article: The Best Way To Secretly Track Any Car

Do Leased Cars Have Tracking Devices – Everything You Need To Know

While it’s not a universal practice, many leased cars do come with GPS trackers installed by the dealership. In this section, we’ll explore why car dealers use GPS trackers as part of their in-house financing. More importantly, what you need to know about leasing a car with a tracking device.

  • GPS trackers are often installed in leased cars by dealerships as part of their in-house financing agreements.
  • These devices help dealerships track the vehicle’s location in real-time, which can be helpful if the buyer fails to make payments.
  • If the buyer falls behind on payments, the dealership can use the GPS car tracker to locate and repossess the vehicle.
  • Dealerships are required to disclose the presence of a GPS tracker in a leased vehicle to the buyer. Therefore, ask about it before signing the lease agreement.
  • If you are concerned about privacy, understand that this may not always be an option if you are taking a loan through a car dealer.

Remember, it’s important to understand that many leased cars come with tracking devices installed by the dealership. If you’re uncomfortable with the idea of a tracker in your leased vehicle, you can consider purchasing a car instead or negotiating with the dealership to have the tracker removed.

Do all car dealerships use GPS trackers? Not necessarily. Each dealership decides who gets loans and whether to include GPS in their cars. Yet, you can bet on seeing more GPS in leased cars soon. Why? Car GPS trackers are getting smaller, more affordable, and more efficient. Not to mention, when cars have GPS for repo it makes those vehicles in default easier for the car dealership to find.

Do Cars Have GPS For Repo – Frequently Asked Questions

Can You Hide Your Car From Being Repossessed?

First, hiding a vehicle that is in default from a repossession company is not recommended. With that being said, a person wanting to hide a car from being repossessed would want to make sure the live GPS tracker connected to the automobile is removed or disabled. Those without an electrical background can take their vehicle to a stereo/audio installation business to have them determine where the real time GPS tracker is hard-wired. Another option would be to invest in a GPS bug detector that can pick up on signals received and transmitted by the GPS vehicle tracker.

Is It Illegal to Remove a GPS Tracker from a Financed Car?

Yes, it can be considered illegal to remove GPS trackers from a financed car. When you sign a financing agreement, it might include terms that allow the finance company to track your car for repo purposes. By removing the tracker, you might be breaching that agreement. If you have concerns, it’s best to consult your agreement or talk to a legal professional to understand your rights.

Can a Finance Company Put a Tracker on Your Car?

Yes, a finance company can put a tracker on your car. It’s often part of the auto repossession process, especially for high-risk borrowers. Finance companies do this to track your car if you miss payments, making it easier for the repo agent to repossess your car. Still curious? Don’t hesitate to ask your finance company directly about their tracking systems and how they handle data processing.

What Are Some Ways I Can Hide My Car from the Repo Man from Taking It?

Some methods people use include parking the car in a locked garage or at a friend’s house. However, you should know, hiding your car from the repo agent may lead to legal consequences. Unfortunately, trying to hide your vehicle this way will only delay the inevitable. The best advice? Focus on working out a payment plan or negotiating the remaining balance with your lender.

What Happens If You Miss Payments and a Repossession Company Comes for Your Car?

If you miss payments, the repo company might come to repossess your car. Once you default on the loan, the auto repossession process begins, which may include using GPS for the repo. A tow truck might arrive, and the repo agent may seize your vehicle. However, there are always opportunities to keep your vehicle even if you are late on payments. Talk to your lender, explain your situation, and seek to negotiate a new car payment plan to avoid repossession.

Related Article: 7 Best GPS Trackers For Catching A Cheating Partner

Matthew Henson
Latest posts by Matthew Henson (see all)
Free Shipping

On All Orders This Week Only

Free Technical Support

Get Help 7 Days A Week

100% Secure Checkout

PayPal / MasterCard / Visa