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Auto-renewals are a contentious topic in the fleet tracking industry. With everyone feeling the financial pinch, businesses want to decide exactly how their money is spent, and contracts that automatically renew can be a nasty trap.
The danger of auto-renewals
I still hear from too many Fleet Managers who have been caught out by a supplier’s auto-renewal clause, and what surprises me is that they rarely know it’s in place when they sign the original contract.
Just as they’re doing their research and gearing up to switch providers, they are unknowingly locked into another lengthy term on all their trackers because their contract automatically renewed.
This leaves them with little choice: either pay a large exit fee or continue paying for a solution they no longer wanted.
Choose to stay or go
Recently, we welcomed a customer who had been with their previous provider for over twelve years, only to be caught by an auto-renewal that extended their contract by another three years. This experience left them with a very bitter taste and damaged a long-standing business relationship. They could not believe the company had done this to them, and that they hadn’t had the decency to let them know it was happening – they felt robbed.
I see no possible advantage to auto-renewals. It’s inconvenient for you, the customer, and it takes away your right to choose. Without a doubt, your needs and circumstances, and perhaps the price point of the system itself, will have changed since you initially signed up, and you should benefit from the opportunity to discuss those changes.
Do Quartix subscriptions have this clause?
At Quartix, we never auto-renew our contracts and we give our customers the freedom they deserve.
Once your initial term ends, we move you to a rolling monthly contract, so you can stay with us by choice, not obligation. We have a 4.9 star rating on TrustPilot, a customer retention rate of over 85%, and our very first customer from 2001 is still with us today – because we believe in earning loyalty through quality of service.
How to avoid the auto-renewal trap
If you’re currently evaluating fleet tracking suppliers, here’s my advice:
Read the fine print carefully. Many vehicle tracking contracts include auto-renewal clauses buried in the terms and conditions, requiring around six months’ notice to cancel. Check the documentation and avoid getting caught out.
Set a calendar reminder well before your cancellation deadline (not when your contract is due to end), allowing you time to review your options and avoid being trapped for years in a solution that no longer fits your business.
Your business needs a flexible, reliable tracking solution that can adapt to your changing needs, without hidden clauses to catch you out. At the end of the day, when customers are treated with transparency and respect, sticking with that supplier becomes an easy choice.
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