For dealership managers, maintaining a profitable and efficient loaner car program is no small feat. Between meeting OEM compliance requirements, managing fuel costs, and tracking vehicle locations, loaner programs can become a logistical challenge. That’s where GPS tracking, known as telematics, comes in. Telematics solutions like Zubie, when integrated with TSD Mobility, provide the tools you need to streamline your dealership loaner program, improve ROI, and stay compliant. Here’s a complete guide to how telematics data and dealership GPS tracking can revolutionize your loaner car program.
What is Telematics, and Why Does It Matter?
Telematics combines telecommunications and information technology to deliver real-time data on vehicle GPS tracking, mileage, battery & fuel levels, and much more. For dealership loaner programs, telematics means:
- Real-time GPS tracking to know where vehicles are at all times.
- Mileage monitoring to meet OEM compliance requirements.
- Fuel level tracking to ensure accurate customer billing.
- Diagnostic insights to maintain vehicle health and avoid unexpected downtime. (Although most loaners are newer model years, engine lights can still surface unexpectedly.)
When integrated with TSD Mobility, Zubie’s dealership GPS tracking capabilities offer a seamless experience—providing all the data you need directly within TSD platform Telematics Hub.
Top Reasons to Use Dealership GPS Tracking for Your Loaner Program
1. Stay OEM Compliant
Original Equipment Manufacturers (OEMs) often have strict guidelines for dealership loaner programs, including mileage limits or time-based programs. Dealerships receive subsidies for transitioning loaner vehicles to sales inventory once they reach specific mileage or time thresholds. However, exceeding these limits can jeopardize your subsidy.
With Zubie’s telematics integration, TSD can alert dealerships as vehicles approach their mileage limits. This ensures that you stay compliant with OEM guidelines and avoid unnecessary financial losses.
2. Improve ROI Through Fuel Cost Recovery
Since the COVID-19 pandemic, dealerships have experienced fluctuating revenue streams. During high-demand periods, expenses like fuel costs often went unnoticed. Now, as business returns to pre-pandemic levels, tracking fuel costs has become a critical component of managing ROI.
Telematics simplifies this process by automatically recording fuel levels before and after each loaner rental period. This data is integrated into the customer’s rental contract, enabling dealerships to charge accurately for fuel usage. Over time, this can save thousands of dollars monthly.
3. Enhance Vehicle Security with Geofencing
For dealerships near borders (Country or State) or other high-risk areas, geofencing provides an added layer of security. With telematics, you can set virtual boundaries around geographic areas. If a loaner vehicle crosses these boundaries, you’ll receive an instant alert—helping you respond quickly to potential misuse or compliance issues.
Where Do Dealerships Put GPS On Cars?
So telematics sounds like a great solution, but where do dealerships put GPS on cars anyway? The answer is that you have options – you can choose between hardware-based solutions, like OBD-II GPS tracking devices, and software-based Direct Connect solutions.
OBD-II GPS Tracking Devices
Unlike traditional GPS units that plug into the OBD port—potentially drawing attention—Zubie’s approach ensures the port remains unobstructed, reducing the risk of tampering or detection. Our innovative installation methods allow dealerships to confidently track and manage their vehicles without compromising security or visibility. We specialize in a seamless installation process that takes as little as 3-5 minutes, depending on the vehicle’s year, make, and model. Our solution is designed to integrate effortlessly with the vehicle’s systems, pulling critical data directly from the CAN bus while remaining discreetly hidden from plain sight.
Direct Connect
Another solution is OEM Direct Connect, which provides GPS and vehicle data directly from manufacturers like Ford, BMW, Toyota, Tesla, and Stellantis brands. This fully software-based solution eliminates the need for hardware installation, offering dealerships a seamless and hassle-free way to access critical vehicle insights. The future of vehicle data sharing is evolving, with more OEMs expected to open their data for commercial use. However, not all OEMs operate the same way—each varies in the types of data they share and the frequency of updates.
Comparing Dealership GPS Tracking Solutions
OBD-II GPS Tracking Devices
- Features:
- High-resolution GPS tracking.
- Recovery mode for locating lost or stolen vehicles.
- Diagnostic trouble code alerts
- Best for: Dealerships that are looking for the most accurate real-time data, detailed diagnostics, and the ability to recover stolen vehicles.
Direct Connect
- Features:
- GPS tracking and vehicle-reported data directly from the OEM.
- Information on mileage, heading, fuel level, speed, and tire pressure.
- Best for: Dealerships that prefer a simple, hardware-free solution.
OBD-II devices provide more frequent GPS updates, while Direct Connect solutions offer slightly less frequent pings. For most dealerships, the difference is negligible. Ultimately, the choice depends on your business needs and the level of data detail you require.
Seamless Integration with TSD Mobility
Zubie’s telematics solution is fully integrated with TSD Mobility, enabling dealerships to:
- View telematics data directly within TSD’s Telematics Hub.
- Receive automated alerts for mileage thresholds, ensuring compliance.
- Streamline operations without juggling multiple platforms.
By enhancing the capabilities of the TSD platform, Zubie provides dealership managers with a solution for managing loaner programs more effectively and creating better customer experiences.
Why Now Is the Time to Invest in Telematics
As dealerships adapt to shifting market conditions, efficiency and cost management are more important than ever. Telematics offers a powerful way to stay ahead by:
- Protecting OEM subsidies through mileage tracking.
- Recovering costs with accurate fuel billing.
- Enhancing security and operational oversight with GPS tracking, geofencing and vehicle diagnostics.
Whether you choose OBD devices or Direct Connect telematics, Zubie’s solutions—combined with TSD—help you optimize your loaner program for success.
Ready to Transform Your Loaner Program?
Zubie is trusted by nearly 2,000 dealerships and growing, helping them streamline operations and maximize profitability. Dealerships don’t see telematics as an expense—they see it as a revenue-generating tool. Don’t let inefficiencies or compliance risks hold your dealership back. Contact Zubie today to discover how our telematics solutions can enhance your loaner car program’s performance and drive new revenue opportunities.