A GPS tracker for a car is a small device that determines the vehicle’s location via satellites and sends it over the mobile network to tracking software. For businesses it is the foundation of fleet management: it shows where every vehicle is in real time, which route it has taken, how many kilometres it has driven and how much fuel it has used. This guide explains how a tracker works, what types there are, what to compare when choosing one and how to roll it out in your company without surprises.

What is a GPS tracker for a car?

A tracker (tracking device) is a GPS module that is installed in the vehicle and continuously records its position, speed and ignition status. The data is sent every few seconds or metres through a built-in SIM card to a server, and you see it on a map and in reports in the software or the mobile app.

The difference between a cheap tracker from an online shop and a professional GPS fleet system is not whether it shows a dot on the map. The difference is what you can do with the data: mileage and stop reports, fuel control, driver identification, automatic trip logs, months of history and service support when something stops working.

How does a GPS tracker work?

Every GPS tracking system consists of four parts that work together:

  1. Satellite positioning. The device receives signals from satellites (GPS, and often GLONASS and Galileo) and calculates its coordinates with an accuracy of a few metres.
  2. Mobile connection. The tracker sends the data over the GSM/LTE network. If there is no coverage, it stores the data in its memory and sends it later, so the route is not lost. The standard GPS/GPRS device SmartTracker ALM3A used for GPS tracking at VEM Technology lasts between 24 and 96 hours without coverage.
  3. Server. This is where the data is stored, processed and turned into routes, stops, starts and halts.
  4. Software. In the SmartTracker web platform and mobile app you see your vehicles on the map, receive alerts and generate reports.

Professional trackers also connect to the vehicle’s electronics. This way they read data from the on-board computer (CAN) and from sensors: fuel level, odometer, RPM, engine temperature, driver identification with an RFID card/tag and more.

What data does a GPS tracker give you?

DataWhat it is used for
Real-time locationDispatching, fast response to customers, security
Route historyProof of arrival on site, disputes with customers, route optimisation
Mileage per vehicle and driverTrip logs, “Weekend” tax, maintenance planning
Stops and idlingLower fuel consumption and less lost working time
Speed and driving styleFewer incidents, fines and wear
Refuelling and fuel drain (with a sensor)Fuel control and proof of theft
Who drives the vehicle (with RFID)Responsibility for fines and damage

Types of GPS trackers

Hard-wired tracker

It is installed out of sight and powered by the vehicle’s battery. This is the standard for company fleets: it never needs charging, cannot be forgotten and provides the most complete data.

Tracker connected to the on-board computer

Along with the position, it reads data from the CAN bus: actual odometer, fuel consumption and level, RPM and more. It is suitable for trucks, buses and newer cars. See the “CAN connection” service.

Tracker with additional sensors

It connects to a fuel tank sensor, a temperature sensor, an RFID card/tag reader and more. You need this if you want precise fuel control or transport temperature-controlled goods.

Why do companies install GPS trackers?

  • Lower fuel consumption. Shorter routes, less idling and early detection of fuel drain. 25% average fuel savings for VEM customers.
  • Better efficiency. The dispatcher sees which vehicle is closest to a new job, and you see which cars sit idle and may not be needed.
  • Control of private use. Reports show movement outside working hours and outside assigned areas.
  • Automated paperwork. Trip logs and private/business mileage reports are generated automatically.
  • Security. In case of theft you know where the vehicle is, and after an incident you know exactly what happened.
  • Cheaper maintenance. The system reminds you of oil changes, tyres, roadworthiness inspections and insurance based on actual mileage.

How to choose a GPS tracker for a company fleet?

The price of the device is only part of the solution. Before choosing a provider, compare the following:

  1. The software. Ask for a demo and check whether the reports answer your questions: how far the vehicle travelled, who drove it, where it stopped, how much fuel it used.
  2. Data accuracy and frequency. How often the tracker sends its position.
  3. Expandability. Fuel and temperature sensors, RFID, integration with your systems via API.
  4. Installation and service. Who installs it, how long it takes and what happens if the device stops working. Installation takes 5–10 working days with a pre-agreed schedule, depending on the number of vehicles. Equipment is installed at VEM Technology service centres in Blagoevgrad, Burgas, Varna, Veliko Tarnovo, Vidin, Vratsa, Dobrich, Kardzhali, Montana, Pazardzhik, Pernik, Pleven, Plovdiv, Ruse, Silistra, Sliven, Sofia, Stara Zagora, Shumen and Yambol. For other towns and locations, VEM Technology sends a mobile team.
  5. Local support. A local team that knows the requirements for trip logs, the “Weekend” tax and the Bulgarian toll system.
  6. Data retention. How many months or years back you can see the history. Live data that the customer can access is kept until the start of the previous calendar year. After that it is archived and available on request.

How to roll out GPS tracking in your company

  1. Define your goals. Do you want to cut fuel costs, stop private use, automate trip logs? This determines what equipment you need.
  2. Inform your employees. Explain what is tracked and why. This is also a legal requirement under GDPR.
  3. Installation. Installing a single vehicle takes 40–60 minutes and is done at your site or at a service centre.
  4. Software setup. Working hours, geofences (office, warehouse, customers), speed and stop alerts, users with different permissions.
  5. The first month. Collect baseline data: average mileage, consumption, stops. Then set targets and track them every month.

Is it legal to track company vehicles?

Yes, if the vehicles are owned by the company, there is a legitimate purpose (security, accountability, cost control) and the employees are informed. If the vehicle is also used privately, it is good practice to let the employee switch on a private mode.

Frequently asked questions

  • What is a tracker?
    A tracker is a device that determines its location via GPS and sends it over the mobile network. In vehicles it is installed out of sight and shows routes, mileage and stops in software.
  • Can a GPS tracker drain the battery?
    Professional devices draw minimal power and switch to an economy mode when the vehicle is parked. VEM Technology uses two main device types: ALM, with a consumption of 4.1 W (12–30 V), and BU, with a consumption of <2.1 W (12 V), measured from a 12 V source.
  • Does the tracker work abroad?
    Yes, if roaming is included in the service.
  • Can the driver switch the tracker off?
    The device is installed out of sight, and if the power supply is cut, the system raises an alert.
  • What is the difference between a GPS tracker and telematics?
    The GPS tracker is the device. Telematics is the whole system: device, sensors, server and software, which turn the data into fleet management decisions.

Get started with GPS tracking from VEM Technology

VEM Technology has been working in telematics since 1996 and serves 8,000 companies / 60,000 vehicles in Bulgaria. Request a free SmartTracker demo and a consultant will show you what you will see for your vehicles. Phone: 0700 1 49 49 · sales@vemtechnology.eu

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