HOUSTON — The National Alliance of Buy Here, Pay Here Dealers has published a seven-page white paper on the use of payment assurance technology to secure subprime auto loans and aid in vehicle repossession. The report is based on a survey initiated by the NABD earlier this year that included more than 100 dealers who collectively employ approximately 150,000 payment assurance units.

“Anyone who is using these devices now, or considering their implementation in the future, should read this survey,” said NABD founder Kenneth Shilson.

The survey reached users of code-based payment assurance (a.k.a. “starter interrupt”) and GPS-enabled tracking devices, as well as dual-technology solutions. The survey found that more dealers are adopting the technology, and that those who do have come to rely on the devices to decrease collection and repossession costs, among other benefits.

Car buyers appear to be on board as well: Only 1 percent of respondents reported that their customers objected to having a payment assurance device installed on their vehicle.

“The survey provided new insights in respect to the use of both payment assurance and GPS tracking devices, and was overwhelmingly positive toward their use and their overall operational impact,” Shilson said. “Although the ways in which these devices are used still varies between users, the consensus was that payment devices are a very beneficial tool in effectively managing a portfolio in today’s challenging environment.”

The white paper, which can be downloaded for free from the “Important Industry Information” section of NABD’s home page, includes a link to a follow-up survey designed to gauge the impact of the technology on BHPH customers. Payment assurance device users are encouraged to complete the survey by October 15 for the chance to earn a free pass to NABD’s first annual East Coast Buy Here, Pay Here Conference, where the results of the second survey will be announced.