Leasing Vehicle Tracking

The economy may be in repair, but there are still some downsides. Lending is more difficult than ever for SME’s. Since these companies need lease finance to purchase vehicles and vehicle tracking systems it can be difficult to get the help they need. Vehicle tracking is most important to companies because of the savings one can find. There are also numerous benefits such as reducing operational costs and improving company efficiency.

Simon Taylor, a TrackCompare employee, stated “because of the mixture of hardware, software, and airtime costs vehicle tracking lease deals usually work on a lease rental basis.” He is not wrong. If you want to recover your lost expenses you need some type of tracking device; however, banks are also recovering due to failure of customers to pay on their loans. Some of these loans have nothing to do with companies or vehicle tracking leases, but that doesn’t matter. Banks are wary of risks. Even with good credit they may be wary of leasing for equipment. The only way to get a lease would be to have a good credit score and a healthy financial account. We list some options for you regarding buying the vehicle tracking system.

Self Financing:

For an SME you may be able to self finance the system in full or part. All vehicle tracking has fixed hardware and installation pricing. You then have monthly costs for the software and data. You could finance part of the system and then lump the rest of the system payment in with your monthly fees. In other words, if you can manage 20 to 30 percent of the overall system in an upfront payment you might be able to get the rest in a lease.

Pay as You Go Tracking Systems:

Some of the tracking companies offering hardware and software provide you with a pay as you go method. You could spend 100 pounds as a deposit per vehicle for an upfront payment then pay as you go with 20 pounds per month. It is a flexible system that is slightly more expensive than long term options.

Other Financing Options:

Some banks can be more flexible than others. It will also depend on where the tracking company gets the leasing they will offer you. You could go directly to a bank and get a lower interest rate than the tracking company leasing is offering you. In general, leasing is 17 percent interest from banks.

Vehicle Leasing:

Many vehicles are coming out with GPS devices. If you lease a vehicle the company may put the tracker in there. You would have to pay for the device as part of the entire vehicle leasing option. Most dealerships want GPS in vehicles that are leased in order to protect their investment.

As a company you will have to decide what the easiest way to pay is. If you go through the vehicle tracking company you have to have good credit and a healthy bank account balance otherwise you may be denied.