Short Term Vehicle Tracking Contracts

Anyone that has a mobile phone can understand what a contract is and the benefits to having one. Vehicle tracking in a contract option is a most efficient way to get the system installed and working at your fleet company. You have fixed costs for the hardware and installation. The ongoing costs are for the software and mobile communications. A lot of vehicle tracking systems of the past were bought with leases in which companies would find secure loans from banks or other lenders. The contract terms were for three to five years. They were a bit expensive given the interest that was attached to the contract purchase. Little has changed in the lease to buy option.

For those who are not sure of their vehicle tracking company and do not want to commit for many years they have the option of short term contracts in which you commit to one year. The information below will answer questions regarding short term contracts for vehicle tracking.

What are the benefits?

A top advantage for this product includes less commitment. Not every business will find the short term contract applicable and it will cost more, but you have more flexibility with this option. You also have a chance to try out the product before you commit. There are no 3rd parties as part of the process, so that can make you feel more comfortable too.

Do the contracts cost more?

Unfortunately, yes. A short term contract will cost more than your other purchase options because you are renting the equipment. The setup costs are spread out over the contract term with the rental agreement. You are also charged a premium for the service. In general, short term contracts provide a better value even though the initial cost is more. A comparison will help you make a final decision.

What if I do not want tracking any longer?

You will have to go through the minimum short term period before you can switch providers. Most terms are from 3 to 24 months, so if you are unsure you could choose the lesser contract terms. Some companies will charge a fee for removing the tracking hardware, so check before hand.

What if tracking works and I want a longer commitment?

Usually tracking companies are more than happy to create a longer commitment; especially when you know you like the product. You may be able to extend the rental agreement indefinitely or change payment options to commit more fully. This second option could lead to better savings.

Will they check my credit?

Most companies will do a credit check for lease or loan. With short term contracts most companies do not run a check since you rent the equipment rather than own it.

What are the upfront costs?

Suppliers usually charge for the installation and/or the documentation fees. You may pay more in the first three or six months if the fees are not upfront as you will pay them over time instead of all in one sum.