Lease rates
Vehicle lease rates are set on a cost-recovery basis.
Lease rates are set to reflect all predictable costs, including depreciation, fuel, servicing and disposal costs, and also include a nominal administration charge.
On disposal of the vehicle, all actual costs are added up and applied to the lease payment made to establish a profit or loss on sale. This is borne by the department or agency.
Lease terms
The lease term is the period over which the vehicle is to be leased. Generally, vehicles must be retained for three years or 60,000km, whichever occurs first.
The correct lease term for a particular vehicle relates to the number of months within which the vehicle is expected to travel its maximum kilometres. For example, a pool vehicle which is expected to travel 60,000 kilometres per year would have a lease term of 12 months - this should align with the number of monthly rental collections.
Please note that early or late return may impact on the profit or loss on sale.
Special rental terms for non-standard vehicles and equipment can be arranged through VicFleet.
