A.R.A. GPS Systems, Inc., is a Georgia Corporation wholly owned and operated by Deborah and Larry Carter of Newnan, Georgia. Their business is a distributorship that sells services and supports GPS Locator/Collection devices. We are fully staffed to meet and exceed expectations and are licensed by the manufacturer to offer services anywhere in The United States of America. Devices are warehoused and ready for same day shipping without waiting on fulfillment from a third party. We ship devices with an invoice enclosed and email a PDF version as well. Customers are asked to send a check for payment. We do not demand upfront, COD or credit card payment.
These electronic devices are embedded/hidden in a motor vehicle typically used as collateral for a higher risk consumer loan. Interaction and control of the systems is accomplished by logging into a web application designed for this purpose. With the system installed, lenders can determine the exact location of a vehicle virtually anywhere in North America. Mapping data is licensed by Bing.
Using the system, the lender can send a command that puts the device in the warning mode. When in the warning mode, the device emits a high pitched electronic beep each time the vehicle engine is started, until the lender sends a command to put the device back into the normal mode. Surveys indicate that 80% of ordinary borrowers respond to the warning beeper by contacting their lender.
Again, using the embedded device and the web application, the lender can interrupt the starter of the vehicle, rendering the vehicle inoperable until the lender sends a command to put the device back into the normal mode. The business model is used by utility companies based on the fact that if a payment is not made, the utility is suspended until satisfactory arrangements are made with the provider. The goal and purpose of the device installation is to modify behavior of the higher risk borrower, making the vehicle payment a much higher priority than previously demonstrated.
Another purpose is a major member benefit for those members whose credit rating has been affected by the downturn in the economy. Turning down the member, based on credit score, on a vehicle loan will cause them to seek alternative financing, which generally means the Buy Here Pay Here dealer benefits from the credit union turndown. Members are then forced to purchase a much higher mileage, older vehicle and pay exorbitant interest rates which in turn alienates them from their credit union.
BHPH dealers generally do not report to any credit bureau. Therefore, their lending experience with the borrower does not become available. This situation can trap the member in a no-win situation because their automobile credit will not improve, even if they paid as agreed. Credit unions can lose the member/borrower forever in this scenario.
Many credit unions are building higher yielding indirect portfolios than through traditional methodology. We train our customers to interact with the systems and offer assistance with installations on a case by case basis. More information about who we are and the nature of the devices can be found on our web site at: www.aragps.com