Vehicle Tracking Is Now a Dealer Strategy
Vehicle GPS tracking systems have evolved far beyond basic location monitoring.
Today’s technology can help recover stolen vehicles, identify diagnostic issues, improve the customer ownership experience, create service opportunities, and keep a dealership connected to a vehicle long after the initial sale.
For retail independent dealerships, that creates an important opportunity.
The right vehicle tracking or intelligence product can deliver value on both sides of the transaction. Customers gain additional visibility, protection, and support. Dealerships gain stronger F&I profitability, improved service retention, more repeat business, and a better opportunity to build long-term customer relationships.
The key is selecting a product that supports the dealership’s goals rather than simply adding another consumer device to the vehicle.
Below are seven common types of vehicle GPS tracking systems, along with the customer and dealership benefits of each option.
1. Factory-Installed GPS Systems
Factory-installed telematics systems are built into many newer vehicles and are typically connected to a manufacturer mobile application. Common features may include vehicle location, remote start, roadside assistance, maintenance reminders, diagnostics, and emergency response services.
These systems can provide a convenient ownership experience, particularly for customers purchasing newer vehicles with active manufacturer subscriptions.
For the Customer
- Integrated directly into the vehicle
- Remote access through a manufacturer application
- Maintenance and diagnostic alerts
- Emergency assistance features
- Convenient connected-vehicle functionality
For the Dealership
Factory systems can make a vehicle more appealing during the sales process, particularly when customers value remote access and connected features.
However, these platforms are generally controlled by the manufacturer. That means the customer relationship, service notifications, and data often remain tied to the OEM or franchised dealer network rather than the independent dealership that sold the vehicle.
Potential Limitations
- Many features require an ongoing subscription
- Trial periods may expire
- Features vary significantly by manufacturer and model
- Limited independent dealership integration
- May direct future service activity toward a franchise network
Best For: Dealerships selling late-model vehicles with active factory-connected features.
2. CarChief® Vehicle Intelligence
CarChief® is a dealership-focused vehicle intelligence platform that combines GPS tracking, vehicle diagnostics, and customer retention tools to help independent dealerships increase service visits and build long-term customer relationships.
Unlike basic GPS products that focus primarily on showing a vehicle’s location, CarChief® is designed to help the dealership remain connected to the customer and the vehicle after the sale.
That connection is especially important for retail independent dealerships.
Franchised dealerships have traditionally used connected vehicle technology, branded mobile applications, and OEM service reminders to keep customers returning to their service lanes. Independent dealers often have fewer tools available to create that same level of VIN retention.
CarChief® helps address that gap.
Through vehicle intelligence, diagnostic information, dealership visibility, and customer-facing technology, CarChief® can help transform a completed sale into an ongoing ownership relationship.
For the Customer
- Vehicle location visibility
- Diagnostic and vehicle health insights
- Greater awareness of potential maintenance needs
- A more connected ownership experience
- Convenient access to vehicle information
- A direct connection to the selling dealership
For the Dealership
The strongest dealer benefit of CarChief® is VIN retention.
When the dealership remains connected to the vehicle, diagnostic information can create timely service opportunities. Instead of waiting for a customer to remember where the vehicle was purchased, the dealership has a stronger opportunity to remain part of the ownership experience.
Dealer benefits may include:
- Increased service retention
- Diagnostics-driven repair opportunities
- Stronger repeat and referral business
- Continued dealership visibility after the sale
- A dealership dashboard for monitoring connected vehicles
- Additional value during the F&I presentation
- Improved customer communication
- Long-term ownership engagement
CarChief® can also support a pre-load strategy in which the product is installed across eligible inventory rather than offered only after a customer agrees to purchase it.
A pre-load or high-penetration strategy can help the dealership create a more consistent sales process, provide a live product demonstration, increase F&I profit per copy, and deliver the same ownership platform to a larger percentage of customers.
Potential Limitations
- Requires dealership adoption and process integration
- Value depends on consistent customer activation and follow-up
- Available features may vary by package or installation
Best For: Retail independent dealerships focused on VIN retention, service growth, customer engagement, and long-term ownership value.
3. LoJack Vehicle Recovery Systems
LoJack is one of the most recognized names in vehicle theft recovery.
While many GPS products provide location information, LoJack is specifically positioned around helping locate and recover stolen vehicles. Modern systems use location technology, cellular communication, and recovery support to help customers respond when a theft occurs.
This makes LoJack different from a general consumer tracker or diagnostic platform. Its primary value is protection and recovery.
For the Customer
- Added theft protection
- Vehicle location visibility
- Mobile application access
- Recovery assistance
- Greater confidence after the purchase
- Support during a stressful theft event
For the Dealership
LoJack can provide a clear and easy-to-understand value proposition during the F&I process.
Vehicle theft is a concern customers immediately recognize. That makes a recovery product easier to explain than products requiring a more technical presentation.
Dealer benefits may include:
- Additional F&I profit per copy
- A recognizable theft recovery product
- Improved customer confidence
- Greater perceived vehicle protection
- A differentiated delivery experience
- A product that can complement CarChief® rather than replace it
CarChief® and LoJack solve different dealership needs.
CarChief® focuses on retention, diagnostics, and long-term ownership engagement. LoJack focuses primarily on theft protection and recovery. Depending on the dealership’s product strategy, both may play a role in the F&I menu.
Potential Limitations
- Focused primarily on theft recovery
- Does not provide the same dealer retention functionality as a vehicle intelligence platform
- May require installation and customer activation
Best For: Dealerships seeking a strong theft recovery product with clear customer value and F&I potential.
4. OBD-II Plug-In GPS Trackers
OBD-II trackers plug into the vehicle’s diagnostic port, which is usually located underneath the dashboard.
These devices are commonly marketed directly to consumers, parents, and small businesses because they are relatively easy to install and may provide location data, driving reports, or basic vehicle diagnostics.
For the Customer
- Simple installation
- Real-time or periodic location tracking
- Driver behavior monitoring
- Basic maintenance information
- Lower initial cost than some installed systems
For the Dealership
OBD-II trackers may provide an inexpensive way to add basic tracking functionality, but most are consumer-grade products rather than dealership retention platforms.
They typically do not create a meaningful connection between the customer and the selling dealership. They also may not provide a dealer dashboard, service communication tools, or a structured strategy for generating future service opportunities.
Potential Limitations
- Easily removed from the vehicle
- Visible to the driver
- Often requires a separate consumer subscription
- Limited dealership integration
- Does not typically support VIN retention
- May create little ongoing value for the dealership
Best For: Basic consumer monitoring needs rather than a comprehensive dealership retention strategy.
5. Hardwired GPS Tracking Devices
Hardwired GPS systems are connected directly to the vehicle’s electrical system and are typically installed in a concealed location.
These systems are frequently used by commercial fleets, finance companies, recovery operations, and businesses that require continuous vehicle visibility.
For the Customer
- Consistent vehicle tracking
- No regular battery charging
- Less visible than a plug-in tracker
- Reliable long-term power connection
For the Dealership
Hardwired devices can provide dependable tracking and may be useful in specific operational, finance, or inventory-control situations.
However, a standard hardwired tracker is not automatically a customer retention product. Without a customer-facing application, diagnostic platform, dealer dashboard, or service communication strategy, it may offer location visibility without strengthening the long-term dealership relationship.
Potential Limitations
- Professional installation is usually required
- Higher installation cost
- Less portable between vehicles
- Features vary widely by provider
- May lack customer engagement or dealer retention tools
Best For: Commercial fleets, specialized finance applications, and dealerships requiring continuous hidden tracking.
6. Portable Magnetic GPS Trackers
Portable magnetic GPS trackers are self-contained devices that attach to the outside or underside of a vehicle using strong magnets. Because they require no wiring or installation, they are often used for temporary vehicle monitoring, fleet management, asset tracking, or recovery situations.
These devices offer flexibility and quick deployment but are generally intended for short-term tracking rather than long-term customer ownership programs.
For the Customer
- Quick and easy installation
- No modifications to the vehicle
- Can be transferred between vehicles
- Useful for temporary tracking situations
- Portable and flexible
For the Dealership
Portable trackers can be valuable for monitoring dealership inventory, transporting vehicles, or temporarily locating high-value assets.
Because they are designed for portability, they are generally not intended to create long-term customer engagement or support dealership retention strategies after the sale.
Potential Limitations
- Requires regular battery charging or replacement
- Can be removed easily
- Less secure than permanently installed devices
- Limited customer engagement features
- Not designed for ongoing dealership relationships
Best For: Temporary inventory monitoring, transportation, fleet operations, and short-term asset tracking.
7. Bluetooth Tracking Devices
Bluetooth tracking devices are designed to help locate nearby vehicles or personal belongings using short-range wireless technology. Popular consumer products rely on nearby smartphones or Bluetooth networks rather than GPS satellites to estimate a device's location.
While these products can be useful for finding items within a limited area, they are fundamentally different from dedicated vehicle GPS tracking systems.
For the Customer
- Affordable purchase price
- Simple mobile app integration
- Helpful for locating nearby vehicles or belongings
- Long battery life
- Easy setup
For the Dealership
Bluetooth trackers are generally not designed as dealership retention products. Their limited tracking range and lack of dealership management features make them unsuitable for F&I programs, VIN retention strategies, or long-term customer engagement.
Potential Limitations
- Limited tracking range
- Not true GPS technology
- Dependent on nearby Bluetooth networks or smartphones
- No dealership dashboard or diagnostic capabilities
- Minimal value for long-term dealership retention
Best For: Locating nearby vehicles, keys, or personal belongings rather than providing comprehensive vehicle tracking or dealership customer retention.
Which GPS System Is Right for Your Dealership?
Every dealership has different goals, making it important to choose a vehicle technology solution that aligns with your business strategy.
If your primary objective is theft recovery, products like LoJack may be an excellent fit. If you simply need temporary inventory monitoring, portable GPS trackers or hardwired devices may provide the functionality you're looking for.
However, dealerships focused on increasing customer retention, generating future service opportunities, improving VIN retention, and creating additional F&I value should look beyond basic tracking technology.
Platforms that combine vehicle intelligence, diagnostics, customer engagement, and dealership visibility can help transform a one-time vehicle purchase into a long-term customer relationship.
| Dealership Goal | Recommended Solution |
|---|---|
| Vehicle theft recovery | LoJack® |
| Long-term customer retention | CarChief® |
| Inventory monitoring | Portable GPS or Hardwired GPS |
| Fleet management | Hardwired GPS |
| Basic consumer vehicle tracking | OBD-II GPS Tracker |
| Finding nearby vehicles or personal belongings | Bluetooth Tracker |
Turn Vehicle Technology Into Customer Retention
GPS tracking technology has evolved into much more than simply locating a vehicle on a map.
Today's solutions can help dealerships protect customers, strengthen F&I presentations, generate service opportunities, increase customer engagement, and build lasting relationships long after the sale is complete.
The right solution depends on your dealership's objectives, but the most successful technologies create value for both the customer and the dealership throughout the ownership experience.
If you're looking for ways to improve customer retention, grow service revenue, and add value to every vehicle you sell, ARC can help you identify the vehicle intelligence solutions that best fit your dealership. Contact our team to learn more.
Frequently Asked Questions
What is the best GPS tracking system for a dealership?
The best solution depends on your dealership's goals. If your priority is theft recovery, a product like LoJack® may be the right fit. If your objective is increasing customer retention, growing service opportunities, and improving VIN retention, a vehicle intelligence platform like CarChief® offers broader dealership benefits.
What is the difference between GPS tracking and vehicle intelligence?
GPS tracking primarily focuses on locating a vehicle. Vehicle intelligence platforms go beyond location by providing diagnostics, customer engagement tools, dealership visibility, and opportunities to strengthen long-term customer relationships.
Can GPS tracking products increase dealership profitability?
Yes. Depending on the product and dealership strategy, GPS and vehicle intelligence solutions can create additional F&I revenue, improve customer retention, generate future service opportunities, and enhance the overall ownership experience.
Is LoJack the same as CarChief?
No. While both involve connected vehicle technology, they serve different purposes. LoJack primarily focuses on theft protection and vehicle recovery, while CarChief® is designed to help dealerships strengthen customer relationships through vehicle intelligence, diagnostics, and ongoing ownership engagement.
Do independent dealerships benefit from connected vehicle technology?
Absolutely. Connected vehicle platforms help independent dealerships stay engaged with customers after the sale, creating opportunities for future service, stronger customer loyalty, and long-term business growth.
How can ARC help my dealership choose the right solution?
ARC works with dealerships across the country to identify technologies that improve profitability, customer retention, and operational performance. Our team can help you evaluate solutions such as CarChief®, LoJack®, and other dealership-focused products to determine which option best supports your business goals.
