Fleet Jargon Explained Part 7 Fleet Jargon Explained Part 7
Service maintenance and repair (SMR) - Blanket term for all the mechanical and technical attention needed by any fleet car. Includes routine servicing, unexpected repairs, replacement tyres etc. Overall is considered as the user's responsibility, especially from a legal/ safety viewpoint, but cost and administration can be included in a lease or contract hire agreement.
VEd - Vehicle Excise Duty is more commonly known as the "tax disk" which must be displayed on the windscreen of all vehicles. It is essentially the road tax that must be paid annually to the Treasury for the use of the country's road network. Since 2001 has been based on the CO2 emissions level of the car according to its official fuel tests.
Wear and tear - This is an important point of negotiation with fixed-cost leases and guaranteed buybacks. The standard of condition of a vehicle on return to a lessor must be agreed between the parties to avoid aggravation on completion. Wear and tear is notoriously difficult to define, but it should be considered right from the start: some dilapidations charges change the economics of leasing completely. The British Vehicle Rental and Leasing Association (BVRLA) and RAC provide fair wear and tear guidelines.
Whole life cost - The most effective way of operating and managing a fleet/ allocation policy. Whole Life Cost (WLC) driven allocation lists take into consideration all the actual costs associated with operating the vehicle, including depreciation, SMR, insurance, fuel, various taxes, insurance etc. Can be shown as a cost per annum, month, or mile.