With the recession causing many businesses to go bankrupt, pay as you go tracking is becoming more and more popular. What is the relation between these two factors?
Tracking up until recently was often purchased by leasing it. This was ideal for tracking companies and the customers alike, but unfortunately more and more companies are finding it hard to get accepted for lease deals. The reason being is that if you lease a van or photocopier you have a tangible asset. Therefore if the customer goes out of business the lease company can take back the equipment to recoup their money.
With GPS vehicle tracking this is not the case. What you are leasing is the service of tracking the vehicles. The equipment for this is tied up in the vehicle tracking company. Therefore there is little or nothing for the leasing company to take back if it all goes sour.
Another problem is that if a vehicle tracking company goes bust then the leasing company have to claim back the money from many businesses that are no longer receiving the service. This is not easy. Businesses are not often inclined to pay out for something they are no longer receiving.
Therefore it is becoming very hard to get a lease deal accepted for tracking. The answer to this problem is to use pay as you go tracking. It is more expensive, but if you cannot get accepted for leasing the service and you would like to reap the huge benefits of vehicle tracking, then this is a good alternative.
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