Glossary
Fleet Cost Glossary
Plain-English definitions for fleet cost, leasing, maintenance, insurance, software, and compliance planning terms.
| Acquisition cost | The cost to obtain a vehicle before operating costs, usually including purchase price, delivery, fees, and upfits. |
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| Administrative cost | Staff time and systems needed for records, invoices, fuel tracking, licensing, software, and scheduling. |
| Closed-end lease | A lease where end-of-term value risk is usually more limited if mileage, condition, and contract terms are met. |
| Cost per mile | A metric that divides total fleet cost by miles driven over the same period. |
| Depreciation | The reduction in vehicle value over time, mileage, condition, and market demand. |
| Downtime | Time when a vehicle is unavailable for productive work because of repair, inspection, accident, parts delay, or scheduling. |
| Duty cycle | The real-world work pattern of a vehicle, including routes, loads, stops, idling, drivers, and operating conditions. |
| ELD | Electronic Logging Device. A system used in some commercial operations to record driving and hours-of-service data. |
| Fleet lease | A vehicle lease arrangement for business fleet use, often with mileage, condition, and end-of-term terms. |
| Fleet management software | Software used to track vehicles, maintenance, fuel, drivers, inspections, records, routing, or costs. |
| Fuel card | A payment and control tool used to buy fuel and track fuel purchases. |
| IFTA | International Fuel Tax Agreement, a fuel tax reporting system for qualifying interjurisdictional motor carriers in most U.S. states and Canadian provinces. |
| Lifecycle cost | The cost of a vehicle from acquisition through operation, maintenance, downtime, and resale or disposal. |
| Open-end lease | A lease structure where the business may have more exposure to residual value or end-of-term settlement. |
| Residual value | The expected value of a vehicle at the end of a lease or planning term. |
| Telematics | Vehicle data systems that may combine GPS location, diagnostics, driver behaviour, maintenance alerts, and reporting. |
| Total cost of ownership | A fuller cost view that includes acquisition, operation, maintenance, insurance, downtime, software, admin, and resale. |
| Upfit | Business-specific equipment added to a vehicle, such as shelving, racks, liftgates, refrigeration, tool storage, or decals. |
| Utilization | A measure of how much available vehicle capacity is actually used. |
| Warranty | A promise from a manufacturer or provider to cover certain defects or repairs under stated conditions and limits. |
| Balloon payment | A larger payment due at the end of some financing arrangements. |
| Break-even point | The point where one option becomes cheaper than another under stated assumptions. |
| Driver assignment | The method used to match drivers to vehicles for accountability and records. |
| Fuel economy | The distance a vehicle travels per unit of fuel or energy. |
| Idle time | Time a vehicle engine runs while the vehicle is not moving productively. |
| Maintenance reserve | Budget set aside for routine service, tires, wear items, and unexpected repairs. |
| Mileage overage | A charge that can apply when a leased vehicle exceeds its allowed mileage. |
| Preventive maintenance | Planned service intended to reduce breakdowns and extend vehicle life. |
| Replacement cycle | A planned schedule for replacing vehicles before reliability, downtime, or resale value becomes unacceptable. |
| Route optimization | Planning routes to reduce mileage, time, fuel use, or service disruption. |
| Service package | A paid bundle that may include routine service, roadside support, inspections, or selected repairs. |
| Vehicle specification | The detailed description of vehicle type, trim, payload, options, powertrain, and business equipment. |
| Wear-and-tear charge | A lease-end charge for condition issues beyond normal contract allowances. |