THE IKON BLOG

The Economics of Your Connected Vehicle Solution

Charles Stilwill
General Manager

Vehicle location technology is no longer a luxury—it’s a necessity for modern dealership operations. From lot management and theft recovery to service retention, telematics systems promise value to your operation. But not all systems deliver the same financial return.

If you’re still using a traditional, pay-upfront model, it’s time to take a closer look at the economics.

The Traditional Model: Dealer Bears the Risk

Legacy GPS providers still rely on a simple equation: You buy the devices upfront. You sell them to customers. You hope to break even—or maybe turn a small profit.

Here’s how it works:

  • You purchase hardware and service in bulk
  • You attempt to resell connected car technology, often during F&I
  • If the customer declines, you eat the cost
  • You pay when devices are lost or on dealer trades

This model ties up capital that could be used elsewhere—whether for inventory, marketing, or incentive programs. It also creates inventory risk: unsold or unused devices represent sunk costs that directly impact dealership profitability.

The Ikon Approach: Profit-Driven from Day One

Ikon flips the model. With our consignment program, Ikon is a true partner in your success - not a hardware provider. We succeed, when you succeed. For dealerships, there’s:

  • No upfront cost.
  • No financial risk.
  • And real operational value from day one.

Ikon devices are installed on every car at no upfront charge to the dealer. From the moment the device is active, your team gains access to:

  • Real-time vehicle and key locating  
  • Active theft recovery tools
  • Dealer-branded customer apps
  • Integrated BDC service scheduling

Most importantly, Ikon is a hard add—the system is baked into the value of the vehicle. Sales teams present it as a standard part of the offering, not an optional add-on to negotiate around.

Where Dealers Profit

In a well-run Ikon program:

  • Dealers successfully upsell the system on 60% of retail vehicles
  • Ikon pays the dealership a rebate for every unit sold

The result? Most dealers realize a net profit from their Ikon partnership—something traditional GPS models rarely deliver.

Time to Recalculate

If your GPS provider is still asking you to front the cost, it might be time to reevaluate. The modern dealership needs tools that work and pay back.

Ikon was designed by dealers like you – with your bottom line in mind. We are not simply a vendor; we are a partner in your success. That’s because we don’t succeed unless you succeed, and that’s the Ikon difference.

‍