“Pay as you drive” car leasing program launched in Poland

Poland’s Idea Bank has launched the world’s first ‘pay-as-you-drive’ car leasing model. The “Happy Miles” model calculates payments for leased cars based on the distance a car travels. A GPS device installed in the vehicle automatically sends information about the distance driven to the lender, allowing for monthly payments to be calculated by multiplying the total distance traveled by a kilometer-based rate and adding it to a small fixed amount. Having GPS installed in the car will also allow companies to gather data on vehicle location, the use of fuel, speeds, braking distance, acceleration, and driving time.