## Why Some Auto Lenders Require Tracking Devices In the auto finance industry, particularly within the subprime market, lenders often use GPS tracking devices and starter interrupt devices to mitigate risk. A starter interrupt device allows a lender to remotely disable a vehicle's ignition if the borrower defaults on their payments, making the vehicle easier to repossess. Lenders who work with borrowers with low credit scores or limited credit history are the most likely to require these devices. Because Carvana works with a variety of external lenders to help customers secure financing, a buyer with a lower credit rating who is matched with a third-party subprime lender might encounter a GPS tracking requirement. ## How to Confirm If a Financed Vehicle Has a Tracker
Borrowers can determine if their financed vehicle has an active tracking device by taking the following steps: * **Review the Finance Contract:** Federal and state laws generally require lenders to disclose the installation and use of GPS tracking or starter interrupt devices. Borrowers should look for a "GPS Disclosure" or "Device Installation Agreement" within their loan paperwork. * **Inspect the OBD-II Port:** Many aftermarket GPS trackers are plugged directly into the vehicle’s OBD-II port, which is typically located under the dashboard on the driver's side. * **Check Under the Dashboard:** Hardwired tracking devices are often installed beneath the steering column or behind the dashboard panel to keep them out of sight. * **Contact the Lender Directly:** The most direct way to confirm the presence of a tracker is to call the customer service department of the financial institution holding the vehicle title and ask about their device policies. ## Legal and Privacy Considerations The use of GPS tracking devices on financed vehicles is subject to state regulations. In many jurisdictions, lenders are legally obligated to obtain written consent from the borrower before installing a tracking device. Furthermore, some states place strict limits on when a lender can disable a vehicle, often requiring advance warning before a starter interrupt device is activated.
Because Carvana and its primary financing partner, Bridgecrest, focus on transparent financing terms, any requirement for a tracking device by an affiliated lender must be clearly outlined in the final purchase and financing documents before the sale is finalized.
