While I was working at Safe-Guard, in 2018, we adopted and co-branded a GPS tracker from ZAZ. Shortly thereafter, we learned that our crosstown rival, EasyCare, was backing another such product, called SAVY.
Of the two, SAVY had more consumer-friendly features in their mobile app, which I feel is decisive. This point of strategic positioning is the focus of today’s post.
Neither hookup did well, demonstrating that providers of “paper” F&I products are ill-equipped to deploy hardware. I took the installer training, just for grins, with Hector Delgado. So, at least I have a useful skill to fall back on.
I also consulted briefly for LoJack, in 2012, helping them sort out issues around preloading – issues they solved, ultimately, by selling the brand to Spireon. Old-timers will recall LoJack used to work on radio. It’s GPS now, like all the others. “New LoJack by Spireon” is, in fact, old Spireon plus the stronger brand name. The field today consists of:
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- Ikon
- LoJack
- Recover
- SAVY
- ZAZ
The model for all of these is that the dealer installs the tracking devices and uses them for lot management, and then sells them through to customers as theft protection. They’re often sold as a nonnegotiable “preload,” which makes sense from the dealer’s perspective because it would cost another $50 of technician time to remove the device if the customer doesn’t want it. You can see how consumer mobile app-appeal figures into our story.
If the device is drawing power from an OBD port, it can report the vehicle’s battery condition along with its location. There’s a lot more you can do with OBD data, but manufacturers can be prickly about connecting to those other pins. The typical device consists of the GPS chip, a cell modem, and an accelerometer. You may have noticed that your iPhone also includes these parts, but not the OBD plug.
Speaking of those other pins, subprime lenders and BHPH dealers can wire the device to do starter interrupt. That is, the OBD-powered devices. The Recover device I saw at NADA is battery powered. The argument for a battery-powered device is that it’s easier to install. The opposing argument is around battery life, especially if you are selling it through, and the advanced capabilities available to an OBD scanner.
Connected Car Features
This brings me to the consumer features:
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- Service reminders
- Teen driving
- Driver performance
- OBD health scan
- Dealer inventory
- Service scheduling
- Credit application
- Trip history
- Recall notification
- Digital glovebox
The astute reader will note that many of these features also aid the dealer in customer retention. On the other hand, dealer-friendly features don’t mean a thing if the customer doesn’t use the app. So, preloading can work against you if F&I fails to upsell the device properly.
Also, as mentioned above, your iPhone can support most of these functions on its own. I run Life 360, which adds “insurance referral” to the driver performance feature. The advantage to the dealer-installed device is that it’s physically attached to the vehicle. By the way, you can buy a home OBD scanner for $30 at Walmart.
The dealer-installed GPS tracker is an amalgam of all these capabilities. The key to success is exploiting them creatively and packaging them in ways that appeal to the consumer.
Virag Consulting 