As we advance in technology it becomes more important than ever to use what is available to us. Benefits of vehicle tracking include lowering your operational costs and increasing performance of your fleet and drivers. With fuel costs fluctuating and economic downturns occurring saving money any way you can is imperative. To help you obtain vehicle tracking we will be looking at some of the financial options you have.
Vehicle tracking systems can be purchased or leased. Some companies require you to purchase the hardware, software and airtime, while others just allow you to lease the systems. You may wish to lease a vehicle tracking system if you have no down payment to offer the company. Typically if you purchase the hardware or the entire system you have to have a down payment and then a monthly payment. There is also the option of purchasing the system outright, but you still have to pay for the airtime.
Here are the four options you can choose when it comes to financing your vehicles tracking system:
Self Financing:
With self financing you are able to pay in full or in part for the system. This means you can purchase the hardware and installation at the beginning. You will still have monthly costs for the software and data. Typically for self financing you will be looking at 20 to 30 percent for the upfront payment. If this is an affordable option for your company it is often your best choice. Keep in mind though, that you may wish to update your hardware in the future. This is one reason some companies go for the next option.
Leasing:
You can lease the system in its entirety. The hardware, software, and data will all be part of your payment. Banks tend to be flexible with lending the funds for vehicle tracking systems. The interest rate is usually 17 percent for leasing though.
Pay as You Go:
Paying as you go for a system can be inexpensive. Generally there is a 100 pounds deposit to get the system set up and then a monthly payment. These payments may be 20 pounds. It is a very flexible option, yet it is expensive over the long term when you compare it to the self financing or leasing options. It is a better way to go if you want the contract for a year.
Vehicle Leasing:
Perhaps the cheapest option is vehicle leasing to get vehicle tracking. Not surprising, most dealerships who lease vehicles will install vehicle tracking. They want to be able to find the vehicle in case it is stolen or something else occurs. When you lease the vehicle you will have the cost of the tracking system included within it. However, the system will have lesser capabilities. Usually the dealership has a passive system to activate if a vehicle has been stolen. For a fleet vehicle leasing is often not a choice at all. Still, you know you have four options for getting vehicle tracking.
