Quartix 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,' he added.

Quartix strongly advises prospective customers to check the credit rating and financial health of their vehicle tracking system supplier and to insist on a direct rental agreement in place of any third party contract.