A tracking unit for a vehicle may include a vehicle position determining device, a wireless communications device, and a controller cooperating with the wireless communications device and the vehicle position determining device to determine and send vehicle position information to a user. The controller may store a user selected reference location, and send the vehicle position information based upon the vehicle moving beyond a radial threshold distance from the user selected reference location. More particularly, the vehicle position information may be sent a threshold time after the vehicle moves beyond the radial threshold distance from the user selected reference location if the vehicle has not moved back within the radial threshold distance. Additionally, the vehicle tracking unit may further include at least one input device to be positioned within the vehicle for setting the user selected reference location.