An Investigation of Rental Rates for Centralized Fleet Vehicles

Report No: 99-TAR6

Published in 1999

About the report:

This report details a study to investigate the current rental rate structure used by the Division of Fleet Management (Fleet Management) to charge state agencies for the use of centralized fleet vehicles. The researchers conducted a literature review of past studies completed by the Joint Legislative and Audit Review Commission regarding Fleet Management. The researchers then analyzed data from Fleet Management and performed regression analyses to develop new replacement criteria and a new set of rental rates. The impacts of these suggested rates were identified. Recommendations from the report include: Fleet Management should replace passenger sedans and minivans at approximately 105,000 miles and replace full-size vans at approximately 120,000 miles. Fleet Management should request that JLARC change the current rental rates to the rates suggested in the study. Fleet Management should reevaluate the rental rates every 2 years and/or after any significant change in vehicle purchase prices or in the composition of the fleet.

Disclaimer Statement:The contents of this report reflect the views of the author(s), who is responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the Virginia Department of Transportation, the Commonwealth Transportation Board, or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. Any inclusion of manufacturer names, trade names, or trademarks is for identification purposes only and is not to be considered an endorsement.

Authors

Other Authors

Robert A. Hanson, Cheryl A. Kyte 

Last updated: December 12, 2023

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