In automobile mortgage industry, risks are mainly divided into three stages: before lending, during lending and after lending. Pre-lending risks mainly focus on the lender's credit information review and vehicle asset information verification risks, while in-lending risks focus on the inaccurate evaluation of vehicle value and residual value, and post-lending risks focus on uncontrollable risks such as overdue repayment, vehicle transfer or re-mortgage, and vehicle depreciation.

In post-loan management, car buyers are generally required to install GPS as the starting point for controlling collateral. GPS equipment, in addition to determining the location when the vehicle is overdue, is also the starting point for post-loan risk control. With the help of GPS, the speed and position trajectory of the vehicle can be detected. If the detection speed continues to be zero, the GPS may have been removed by the borrower; If the speed is low, maybe GPS is tied to an electric car for a ride, creating the illusion that the vehicle is driving normally; If the location trajectory does not match the common address of the borrower, it is also an abnormal signal.

However, in the Internet age, the common installation locations of GPS have already spread wildly on the Internet, and opportunistic car buyers dismantled GPS locators themselves, which made it difficult for auto finance risk control companies and banks to collect debts and find cars, resulting in heavy losses. Using the water tank locator can better hide and track the vehicle and prevent malicious disassembly and secondary mortgage.