US finance company Hampden Group, Inc. has announced a new product for the sub-prime vehicle finance market.
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The company said it launched PrePaidMotors.com with the aim of being first to market with a new programme that has already proven successful in the furniture and electronics sectors. PrePaidMotors.com focuses on customers with less than desirable credit and will finance cars, trucks or SUVs without doing a credit check.
PrePaidMotors.com uses the infrastructure of existing vehicle dealerships and focuses on sales and finance. The biggest advantage of this programme for dealerships is said to be that it allows them to finance almost anyone – about 20% of finance applications currently processed are declined.
GPS tracking technology is claimed to make this sub-prime finance programme different. The technology allows Hampden Group to track the vehicle and monitor maintenance, location and prevent the vehicle from starting if payment is late.
“Just like a utility payment, if it is delinquent, service is disconnected,” the company said in a statement.
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By GlobalData“The new GPS technology used in each car has the same effect. If payment is late, service is discontinued. Customers can make payment via the internet, Western Union or at the company’s locations. The vehicle starter can be enabled via the internet once payment is brought [up to date]”.
