This appears to be the first time, however, that a company is exploring the use of GPS tracking in this fashion. Lund said.

If the auto financing company does move ahead with its plans to use GPS devices it is almost certainly going to face considerable opposition from privacy advocacy groups.

Many groups have been vocal in their opposition to the unchecked used of GPS devices for consumer tracking and law-enforcement purposes. Main concerns stem from what privacy advocates say is the ability of GPS devices to enable deeply intrusive monitoring of an individual's daily movements and habits.

News of the financing company's inquiry, first reported by the , comes just days after the U.S. Court of Appeals for the District of Columbia circuit that federal agents be given the authority to conduct around-the-clock, warrantless GPS tracking of suspects.

In arriving at the decision, the court ruled that gathering evidence via continuing GPS tracking without a warrant was a violation of an individual's constitutionally protected right against unreasonable search and seizure.