You don’t pay the instalment, you won’t go. How leasing companies defend themselves against debtors.

awojcieszek
10 June 2015
You don’t pay the instalment, you won’t go. How leasing companies defend themselves against debtors.

One touch of a button and a car or machine, hidden by the client from the eyes of debt collectors, stays in place. This is possible thanks to the GPS systems: they will find the subject matter of the dispute and cut the ignition off. Making it completely useless.

A business owner convinced himself of the effectiveness of this method, thanks to which the company recovered expensive construction machinery this year. – Lessee ceased to pay for it and did not want to give it back. We had to react – explains employee of a lease company wishing to remain anonymous.

The solution is becoming increasingly popular. – In the GPS systems, it is possible to use features, which in the ordinary situation do not adversely affect the safe use of vehicles. This is for example cutting off the starter, which of course we use in exceptional situations – admits Krzysztof Moczyński, director of the department of risk and insurance at Leasing Polski. He adds that the GPS monitoring surely makes the processes of debt collection easier to lessors

We see the potential in using this functionality of systems. Polish leasing business is constantly expanding, so more and more companies wanting to move with the times, implement solutions in the field of new technologies – emphasizes Moczyński.

Also, companies engaged in selling and servicing GPS modules speak of growing interest in the service. According to them, a recovery in the leasing market and dissemination of technological solutions make the lessors are starting to reach out for new forms of protection against companies that fail to comply with their commitments. – We anticipate that in the nearest future lessors will opt for the installation of GanFleet modules not only because of the possibility of locating their objects, but also because of the functionality associated with remote cutting off vehicle’s ignition, in the case of blatant financial insubordination of lessee.  – says Marcin Kawka from Gannet Guard Systems, which estimates to have over 60 percent of market share of such equipment.

Lease companies are cautious in officially declaring the implementation of such solutions. They unofficially admit that this proposal is particularly interesting in the case of service to the self – employed or microbusinesses, which lease no more than two vehicles. In their case, the risk is greatest.

These are people treating lease as a cheaper form of credit, and when running a store or a bakery there can always be more difficult months, when there is no money for the next instalment – explains a representative of one of the leasing company.

Companies do not reveal the scale of delays in lease payments for vehicles and machines. As it follows from our conversations with representatives of major leasing companies, the share of late payments for cars and machines usually does not exceed a few,  up to several percent. So because they often lease out to one company even hundreds of vehicles, then due to the size of contracts they carefully look at potential clients in terms of risk. Therefore, with such a large fleet, their employees are constantly in touch with customers.

According to the data of the Central Statistical Office, at the end of 2013 the value of all overdue receivables in leasing companies amounted to 8,1 billion zlotys, which accounted for 20,7 percent of the overall gross receivable. It is not known what proportion of them falls on the vehicles and machines. In the whole of 2013, companies studied by the CSO concluded new contracts to lease 439 thousand items in the amount of 30,4 billion zlotys. These were mainly road transport means with the share of 63,8 percent and machinery as well as industrial equipment (26,5 percent).

Currently, GPS systems in the lease of vehicles and machines are primarily used for their location. Increasingly, their functions are also expanded to the analysis of vehicle technical parameters and reporting to the client, often online, such data as: average vehicle mileage, fuel consumption or even the way of driving.  These solutions help to maintain the most optimal use of vehicle fleets.

Leasing companies indicate that with these solutions, clients are able to not only save on fuel costs or supervise the work of drivers but also to gain in the costs of comprehensive motor insurance policies.

Source: //auto.dziennik.pl

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