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P TELEMATICS
Page 11
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Vehicle tracking predicted to use pay-as-you-go by 2011
A LEADING TELEMATICS provider is predicting that all commercial vehicle tracking contracts will be based on a pay-as-you-go (PAYG) model within two years, replacing the established leasing agreements.
Andy Walters, managing director of Quartix, believes haulage firms are shifting to the direct rental model due to dissatisfaction with five-year lease contracts.
Walters says some
suppliers have run into I-r`o financial difficulties in 6 the past by taking pre
payments on leasing arrangements and then spending the money on employing more staff and other activities rather than setting the cash aside for future costs and contract liabilities.
"Our warning to telematics customers remains very clear," he says. "The industry is far from being out of the woods, and no customer should consider giving any supplier a pre-payment or signing leases with a third party unless they are absolutely clear about its current trading situation. We believe customers increasingly see pay-as-you-go as the way forward."