VicFleet provides a vehicle lease management facility for about 40 government departments and agencies. Vehicles that can be leased by VicFleet include passenger and light commercial vehicles.
All vehicle leases managed by VicFleet are financed via a loan agreement with the Treasury Corporation of Victoria (TCV). Under this arrangement the Department of Treasury and Finance (VicFleet) is the lessor, whilst eligible government departments and agencies are structured as lessees. As finance leases, all the risks and benefits of ownership reside with the client and are subsequently reported on the client's balance sheet.
Under current Government policy, the standard lease term is 36 months or 60,000 kilometres - whichever occurs first.
VicFleet leases are based on a fixed whole-of-life rental budget, which entails forecasting all predictable lease costs connected with ownership and usage of the vehicle. For certain clients, some of the operating costs have been removed and are managed directly by the client.
On a monthly basis, VicFleet raises an invoice or credit note for each client for the difference between what was billed and incurred for all vehicles sold. At the end of the vehicle's lease, VicFleet calculates any final adjustments.
Under this vehicle leasing arrangement, VicFleet is responsible for the following activities:
· Vehicle quotation;
· Vehicle ordering;
· Fleet information systems;
· Financial reporting;
· Insurance arrangements;
· Registration renewal;
· Vehicle disposal;
· Lease funding; and
· Lease establishment and termination.
