So says Quartix, which reports that more than 50% of its overall sales are now derived from its PAYG vehicle tracking product.

Andy Kirk, sales and marketing director, said: 'The recession has seen the collapse of, or problems at, many telematics companies. Therefore, the thought of entering into a long-term contract tends to make fleet operators extremely cautious – and rightly so.

'Not surprisingly, pay-as-you-go has become extremely popular with large organisations, such as Canute Haulage Group PLC, as well as small and medium-size enterprises. This rental model guarantees the right to opt out at any time after the first three months plus the opportunity to add or remove tracking units as and when necessary.'

Quartix says it became the UK's first major telematics provider to introduce pay-as-you-go in April last year, adding it to its lease-finance and outright purchase options. The company also reports that since then it become the UK's first tracking company to supply PAYG with Google Maps and the first to offer a unique on-screen "dashboard", which gives at-a-glance, real-time information about a fleet's  performance.  Earlier this year innovative icons that change colour to display vehicles' speed were added.

Mr Kirk said: 'As a top-level service Quartix Pay As You Go has proved to be just the right product at just the right time, attracting strong demand from all sectors.'