AN INVESTIGATION OF RENTAL RATES FOR CENTRALIZED FLEET VEHICLES

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 (JLARC) 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: (1) Fleet Management should replace passenger sedans and minivans at approximately 105,000 mi (168,945 km) and replace full-size vans at approximately 120,000 mi (193,080 km). (2) Fleet Management should request that JLARC change the current rental rates to the rates suggested in the study. (3) 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.