The Problems With Leasing Vehicle Tracking Continue
As we have mentioned here on VehicleTrackingSystems.org.uk many times before leasing is becoming a thing of the past for vehicle tracking. The problems is for lease underwriters to recover the money when someone defaults on their payment or the tracking company goes bust and the customer is no longer willing to pay the lease has not been fixed.
The value of a tracking system is in the software and data. Both of these are intangible assets which the lease company cannot repossess if the deal goes bad.
Yes some vehicle tracking companies offer pay as you go tracking, but it is more expensive and you are still required to pay some money up front for the tracking system. Something you don’t have to do when leasing a tracking system.
Some companies still sell their tracking systems purely via leases, but now many more lease underwriters are pulling out of the vehicle tracking market. With this happening it is becoming ever harder for vehicle tracking companies to find lease underwriters.
Some vehicle tracking companies underwrite their own lease deals, but usually only the bigger players can do this. Other companies use high risk brokers to underwrite their tracking systems, but this forces costs up and with tracking being a competitive market the tracking company usually has to absorb this cost meaning that their profit margins are made smaller.
