Quartix reports increasing concern over the resurgence of lease-finance contracts for vehicle tracking systems and urges prospective buyers to check their supplier’s financial health.
Managing director, Andy Walters, said: "Under this model, customers are asked to commit to payments of £1000 or more per unit – over an extended period – to a bank or finance house, despite the fact that the tracking system has a value of £300 or less.
"The supplier gets all his payment on day one and is free to spend it as he sees fit, without necessarily providing for the proper support of the client over the term of the contract.
"If the supplier goes under – as happened extensively in the last recession – customers are still left with the payments to make, which comes as a major shock to them. A number of suppliers are resorting to this type of contract again, and I can only believe this is driven by cash-flow issues once more. This practice must stop before it gives the industry a bad name."
For further information contact:
Andy Kirk, Sales and Marketing Director,
tel. 0870 013 6663