The number of times the driveshaft must rotate to turn the axle once. If the drive shaft needs to rotate three times to turn the axle once, this gives a ratio of 3:1. Low ratios tend to be more fuel-efficient; higher ratios give more torque for acceleration or for moving a heavy load.
Anti Slip Regulation traction control ensures the vehicles stability when pulling away or accelertaing. If the engine power or torque being transmitted to the drive wheels is too great, for exapmle, on a slippery road surface, engine torque is automatically reduced until optimum road-holding returns, thus preventing wheel spin. A light indicates whether the ASR system is on. It can be manually switched off.
The anti lock braking system prevents the wheels from locking during heavy or emergency braking, enabling the vehicle to remain steerable. When braking, wheel speed sensors measure the road speed and should one or more wheels start to lock the system reduces brake pressure to that wheel.
The main body of the wheel is manufactured from an alloy of aluminium, titanium, magnesium or other metal that allows the wheel to be of a lighter construction.
Defines the company hierachy, and outlines what employee grades/ sectors are able choose, or are given, regarding vehicle type and specification. Whole Life Cost or rental figures are better than the capital value of a vehicle as the criterion for selection of models at different employee grades. This more exactly defines the overall cost of the car to the company, especially if the lease is contract hire.
Are effectively cushions that are inflated with inert gas in the space of 30 or 40 milliseconds to protect vehicle occupants in the event of a collision. They are activated by sensors within the vehicle that can detect sudden deceleration of the vehicle indicative of a collision. The inflated airbag shields the occupant's body and spreads the forces and loads the body is subjected to over a wider area, thus reducing the level of injury sustained.
A system to control the temperature of the interior of a vehicle regardless of the exterior temperature. To be able to do this the system must have a refrigerant capacity so as to be able to actively cool air drawn into or recirculated within the vehicle.
All the clerical or organisational tasks involved in running fleet cars and vans. This includes vehicle and driver listings, acquisition and disposal details etc. Some types of lease relieve the user-company (“lessee”) of most of this administration - but allocation policies and budgeting are just two of the tasks that must still be done internally.
An active head restraint enhances the protection to a vehicle seat occupant over that provided by a conventional, static head restraint. In the event of a rear collision, a mechanical system in the seat back moves the head restraint forward, closer to the occupant's head, so minimising movement of the head that could injure the skull and spine.
The actual process of acquiring the vehicle in the first instance. This may involve physically identifying and purchasing the appropriate vehicle, or utilising a third party to acquire/ supply the vehicle (eg. Leasing or contract hire).
The proactive management of all aspects of vehicle accidents, from minimising the time a vehicle takes to be repaired and returned to service, to ensuring the driver has continued mobility. Also involves managing repair and insurance costs, and any medical/ injury aspects. Third party specialist suppliers can be brought in to manage this area for a fixed monthly fee.
The forward planning of operational costs over the forthcoming period (usually the financial year) One advantage of leasing is the fixed rental costs which help in making forward budgets. Multiply the monthly rentals for each car by the months held, and there’s the forward cost. Make separate provision for the things the lease does not cover (insurance; fuel). Outright purchased fleets run via Whole Life Costs also provides a much simplified way of estimating forward budgets.
Brake horsepower (bhp) is the horsepower measured at the output shaft (without any loss caused by transmission of power to the gearbox or auxiliary systems).
These headlights increase brightness up to 2.5 times more than halogen lights whilst using 33% less energy giving you the added benefit of increased visibility at night.
The income tax that is paid by an employee for any benefit they receive from their employer by virtue of their employment. In fleet, this is normally for the private use of a company car and for the provision of free fuel for private use. These are commonly known as company car tax and the fuel scale charge respectively.
This is the final payment due under most finance leases, to liquidate the whole debt. Usually set to match the expected residual value, so rentals reflect actual depreciation. Beware of too-high balloons: they may give low rentals, but will usually leave a financial hole to be filled by you, if the car doesn’t make enough on disposal.
Curtain airbags are generally deployed from the roof liner above the doors to protect the heads of the driver and passengers seated next to the side of the vehicle in a side impact. There may be separate curtain airbags for the front and rear of the occupant compartment, or single curtains that run the length of the interior.
One of the most common types of lease. Usually totally fixed-cost: the lessor accepts responsibility for virtually all “normal” costs associated with providing the cars (depreciation, maintenance, funding, VED, administration), at his own risk. Details of cover vary widely, so check the agreement. Contract hire is a service and therefore you do not own the cars. The quality and quantity of the backup and support are key areas, rather than price/ rentals.
These are the legally binding documents relating to third party suppliers of vehicles and services. Read them carefully before signing, and check the small print. Consider situations such as early termination, excess mileage and dilapidation penalties when considering leasing contracts.
The figure for combined fuel consumption, which is calculated for a mixture of driving conditions, expressed as miles per gallon (mpg) and litres/100km.
In Britain, the calculation of Vehicle Excise Duty (VED) for cars registered since March 2001 has been based upon a calculation of their CO2 emissions and their fuel type. (The purpose of this is to address greenhouse gas emissions, the stated principle being: "The less it pollutes the less you pay".) Every vehicle in the market is placed in a band from "A" (low CO2 emissions) through to G (highest CO2 emissions). The system of taxation is properly known as Graduated Vehicle Excise Duty. The amount the owner pays increases the higher the band of the vehicle.
Air conditioning offers great advantages over standard ventilation and the first is keeping your vehicle cool during the summer months. But surprisingly becomes an effective tool in winter, demisting the windows faster than standard ventilation. Other added benefits include increased residual values and desirability.
A CD autochanger holds more than one audio CD-ROM. It allows music to be played through the ICE (In car entertainment) system from any one of the CDs it contains, so that a greater variety of music can be accessed. This avoids the need for constant manual selection/changing of CD-ROMs.
Leasing can really help match the costs of providing cars, with the income they help to generate. By spreading the costs over the period of use, leasing and other credit schemes can provide much flexibility. Make a whole-cost calculation, to ensure that the effective rate of interest is not too high. Also remember that for fleets of more than about 50, the average cash flows of purchase can be similar to leasing. If a lease only stacks up by doing a DCF (discounted cash flow) analysis, you probably don’t need it. A smooth cash flow (ie £XX,XXX per month each month) is usually more desirable than no outlay for 11 months and then a massive cost outlay in a single month.
The "cost" or financial value of an asset, at time of purchase or after periodic depreciation reductions. Used by prospective lenders (including banks) as a measure of the strength or otherwise of a company's balance sheet. Capital expenditure usually is more tightly controlled than revenue spending - even though this is sometimes not justified.
The CAN Bus is an electronic data bus which links the various different electronic control system in the car. It ensures ideal co-ordination between systems and reduces the amount of wiring needed in the car.
The final sale or defleeting of a vehicle at the end of its life on the fleet. Taken care of by the supplier in contract hire, but is the user’s responsibility for most other methods. Keep an open mind on any one method - consider and use auctions, traders and part-exchange as appropriate.
DSG transmission uses the very latest technology to aid your driving safety and comfort. The DSG can opertae in two modes. (fully automatic and manual tiptronic) This means comfortable gear shifting with no loss of performance usually found with automatics, but also provides excellent acceleration and greater fuel economy than standard automatics.
Often an area of dispute in leasing scenarios. Can be defined as the repairs and refurbishment needed to bring the car back to a “reasonable” condition for age and mileage at end of lease. It is unrealistic for lessors to expect back a fleet car in showroom condition, and hence the industry term of “fair wear and tear”. The British Vehicle Rental and Leasing Association (BVRLA) publish clear guidelines as to what should be regarded as fair.
A differential is a geared assembly that allows the driven wheels of a vehicle to turn at a different speed on the same axle. This is to allow the outside wheel to travel further when cornering without causing the inside wheel to spin.
Diesel particulates are microscopic particles of carbon (soot) created during diesel engine combustion. Measuring approximately 0.05 micron, they are associated with a number of human health problems, both respiratory and other. A particulate filter traps the carbon from the vehicle exhaust stream in a ceramic, honeycomb structure and then burns ('regenerates') it at a high temperature to oxidise the carbon to carbon dioxide (CO2) which, as a gas, is easily dispersed.
A fuel injection system for diesel engines where a single fuel rail is fed by a high pressure fuel pump. Because injection pressure is independent of engine speed and load the injection can be precisely controlled by an electronic control unit allowing phased injection of fuel to reduce noise and emissions.
Loss of value of an asset or vehicle as it is used and ages. Different professions have different definitions. Beware the accountant’s definition of depreciation, as they use accounting conventions, and therefore their figures may not reflect the vehicle’s actual loss in value. The true depreciation of a vehicle is its purchase price less its current market value or sale price
Most fixed-cost leasing contracts assume a “contract mileage”. Any mileage over this will incur additional depreciation and maintenance, which the lessor will seek to recover by the excess mileage charge. Pooling arrangements to aggregate all vehicles returned in a 3- or 6-month period are increasingly common. Watch the actual rates, and keep a check yourself, as they can be penal.
Is a car with a large load compartment where the roof height of the occupant cell is extended to the back of the vehicle which, in profile, has a vertical or near vertical rear hatch or door.
The volume displaced by the engine pistons of an internal combustion engine between top dead centre and their bottom dead centre. The engine capacity can be expressed in litres or imperial volume measurements but here we always show the volume in cubic centimetres (cc) as the most precise measurement available.
The ESP can be switched on or off by the driver. It has been designed to stablize the dynamic handling response of the vehicle by countering any tendency towards understeering or oversteering. The ESP constantly compares the actual movement of the vehicle with predetermined values and according to the situation ESP reacts by braking each wheel individually (according to direction of slip) and automatically adjusting the engine's output.
Electronic Differentail Lock continually compares the rpm of the drive wheels, and if it identifies a difference between them which could lead to an individual wheel spinning, for example, if the two wheels are on different types of surface or accelerating on wet leaves, the system brakes the wheel affected until uniform rpm of all drive wheels is restored.
Electronic brake distribution is a function which replaces the brake regulator on the rear axle. The ABS control unit registers the speed of wheel rotation. If it detects a difference in the speed of rotation of the rear wheels, it regulates the brake pressure on the rear axle, thus preventing excessive braking of the rear wheels.
If a lease agreement is ended by the lessee before its agreed contract term, then the lessor will usually require and early termination payment. This may be a penal charge, but the many leasing companies often based the charge on the actual losses they incurs due to the premature ending of the lease.
Anything to do with providing the money to acquire fleet cars. Can include bank overdraft, hire purchase, conditional sale, block discounts, lease or contract hire. The choice of method or even mixture of methods depends on the needs of the user - overall cost, cash flow. Taxation, balance sheet and risk elements are all factors to be considered. Some care needed to ensure that effective interest rates are not excessive.
If or more of the airbags inflate after an accident, this system automatically cuts out the fuel supply, thus preventing subsequent leakage of the diesel or pertol.
Fundamentally a corporate credit card that is specifically for fuel. Its main advantages are the provision of a simplified central billing system, and also management reports can be supplied providing information on fuel purchases (where, when, how much and who by), vehicle's fuel economy, fuel pricing etc. Also cards can be restricted to only cover certain forecourt purchases ie diesel OR petrol, oil, screen wash, and exclude
A flexible guard usually of plastic or rubber, positioned behind the front wheels to prevent stones, mud or water spray being thrown up from the wheels.
Front fog lights are additional lights, normally below the level of the front bumper, intended to provide better vision when driving in poor visibility.
There are many suppliers of specialist software packages that are computer based systems that, once primed with your fleets vehicle data, can be used to proactively manage and monitor your fleet and its costs. Many smaller fleets may merely use a standard spreadsheet application, which in many instances is perfectly adequate. Specialist software systems are especially beneficial when dealing with a high level of small transactions from different driver/ cars, such as fuel and maintenance costs.
A range of technical support functions available from a specialist supplier - can include any of the cost areas such as purchasing, disposal, maintenance arrangements, funding, fuel monitoring, reporting etc. Usually available from lessors (because of similarities) but client carries all risks and costs. Fleet management company charges an agreed fee (usually per vehicle) to cover their administration.
The simplest form of lease which is only concerned with funding the chosen vehicle. Usually involves writing the car off over the period of contract (2-5 years) with the lessee doing most of the work, eg finding the car, negotiating discounts, maintenance, residual value, etc. Disposal proceeds go to lessor because he is the owner: usually then rebated (95-100 %) to lessee as a “rebate of rentals”. Rentals are classed as revenue expenditure, not capital, and attract VAT. Most rentals are paid monthly or quarterly. Since the lessee carries the actual risk and cost of depreciation as if he owned it, this type of lease is in fact treated (for the purpose of financial reporting) as if it were hire purchase.
An early form of credit funding. Lender provides a fixed cost, fixed period loan (of money) to user, to support purchase. User is effectively the owner but will not have title to car until loan is paid off. Instalments repay the capital and interest. If a residual value is built into the calculations, the scheme is usually called Contract or Lease Purchase.
Hill hold control is a further system, with which the system ESP can be extended. This system is activated when pulling away from stationary position on a hill (forward or backwards) without having to use the handbrake and not having the risk of the vehicle rolling back. This HHC system will only work on gradient over 5% with the driver's door closed.
The windscreen has an electrical element to assist in defrosting/demisting the screen. This is distinct from the almost universal practice of siting vents from the vehicle's heating system in close proximity to the windscreen for the same purpose.
Washers that clean dirt from the front glass of the headlight to maintain their brightness and effectiveness. Headlight cleaners may consist of a high pressure water jet and/or a mechanical wiper blade similar to a miniature windscreen wiper.
A rear hatch that provides access into the occupant cell of the vehicle rather than just into the boot compartment. Generally therefore the hinges of the rear opening are at roof level and above any window in the rear hatch. In Europe it is common practice to count the hatch as a door - a hatchback will therefore have three or five doors.
This allows child seats equipped with the Isofix system to be fitted securely to the vehicles body via the spaces provided between the rear seat backrest and seat base.
A vehicles anti-theft system that works by disabling the engine management system and/or other electronic systems to prevent unauthorised starting of the engine.
A rental service to provide the "use" of a vehicle for an agreed monthly/ quarterly rental. In a lease there must never be any vehicle ownership by the lessee, hence an employee may be able to purchase a lease car at the end of its time on the fleet, but the company leasing the vehicle cannot.
A 'multifunction steering wheel' allows the driver to operate a range of equipment and vehicle functions without taking their hands off the wheel by utilising control buttons directly on, or 'stalks' very close to, the wheel itself.
The engine torque control system recognises when the wheels are subject to too much slippage and regulates the power supply by intervening in the engine management system. This prevents wheel spin when, for example, changing down on a smooth or wet road surface. MSR is a constituent part of the ASR system.
This is the basic volume of the load space of a vehicle with all the seats and any parcel shelf or luggage cover in place – the vertical measurement is therefore generally equivalent to the level of the top of the rear seat back or to the bottom of the rear windows. In vehicles with a separate boot and fixed rear seats – generally some sedans or coupes – the maximum and minimum load capacity will be identical.
Can be used to avoid potentially punitive excess mileage costs. Mileage Pooling is available in many leasing scenarios, where vehicles returned to the lessor with mileage exceeding the contract mileage can be pooled with lower mileage vehicle returns, to offset those with high mileage.
Metallic paint contains tiny metal fragments that reflect light and give the car extra shine. In addition metallic paint is almost always covered with a clear coat of lacquer to give the vehicle the appearance of extra shine.
Torque is defined as the product of a force and its perpendicular distance from a point about which it is causing rotation: put simply a twisting force. For an engine a torque value is a measurement of the twisting force produced at the crankshaft. The maximum torque is the greatest amount of torque an engine is capable of producing. (measured in rpm, this defines the rotational speed of the crankshaft that the engine must attain to produce maximum torque. Also measured in newton metres Nm, which expresses the torque produced by a force of one Newton acting on a one metre long lever.)
Speed is the ratio of the distance covered by an object or body to the time taken. Maximum speed is the top speed that the vehicle can achieve as published by the manufacturer. Maximum speed is measured in miles/hour or kilometres/hour.
This is the maximum volume of the load space of a vehicle. In a passenger car this is measured with the rear seats folded down and includes the entire volume of the compartment – i.e. from floor to roof headliner.
Often seriously underestimated, especially by smaller fleets. Effective management of a fleet of cars can save considerable sums of money, but itself costs money. Can be delegated to external experts - fleet management or contract hire companies.
The valves of an automobile engine control the intake of fuel and outlet of exhaust gases. The number (and manner of control) of these valves effect many aspects of the engine's performance. With more valves per cylinder, engines can be ventilated more effectively with the potential to increase torque and power outputs as well as improve fuel consumption and emissions characteristics.
In a reciprocating internal-combustion engine the cylinders are the tubes in which the pistons move up and down which are surrounded by the engine block. In an automobile engine there will generally be a number of cylinders (commonly 4, 5 or 6, but conceivably a number between 3 and 12). The total volume of the cylinders determines the engine cc (capacity).
A vehicle navigation system combines location information with mapping data to provide directions to a destination set by the vehicle driver. The location of the vehicle is determined by a satellite based GPS (Global Positioning System). Information from other vehicle systems such as the ABS or trip computer may be combined with this to give greater accuracy. The positional information is then overlaid onto map data which is retrieved from a database (typically stored on a dedicated CD ROM or DVD). The route to the final destination is constantly recalculated so as to ensure the correct driving directions are being delivered at any given point. These directions may be delivered to the driver in the form of a map or 'arrow' direction indicators through a visual display and/or audibly, using a voice synthesiser.
The simplest form of vehicle acquisition, where the company requiring the vehicles buys them from cash reserves or via a business overdraft facility. This provides the most flexibility for the company operationally, but also carries the highest administration levels and potentially the highest risk/ reward from residual value fluctuations.
Any lease which leaves most of the risks of ownership with the lessor. This is important under accounting conventions as it determines if the assets will appear on the lessee's balance sheet. Fixed-cost contract hire (with or without maintenance) is clearly an operating lease and hence off balance sheet. Watch out for predicted accountancy changes in 2003/ 04 that may make all leases and contract hire on balance sheet.
A protective and decorative, strip that runs along the side of a vehicle, to prevent damage to the doors and side body panels, particularly that caused by the doors of adjacent vehicles when parked.
Paints contain fine pigments that reflect light from many different angles creating a rich luxurious effect. The light reflection varies with the angle at which it is viewed and can create the appearance of colour change.
Parking distance sensors automatically warn the driver of obstacles when manoeuvring a vehicle. Typically, these systems use ultrasonic signals from sensors in the bumper or vehicle body to detect and measure the distance to any physical object within close range of the vehicle. The information is fed back to the driver by a visual display, or by an audible warning signal, or by a combination of both. They may additionally or alternatively make use of externally mounted close circuit cameras to guide the driver via a dashboard mounted display.
Bar-like structures for transporting loads on a vehicle roof which run parallel with the centre line of the vehicle. Roof rails are load bearing members to which other load carrying equipment can be fastened such as cross-bars or other types of load and luggage rack. They are not intended to have a load or luggage attached to them directly.
Minimising the company's exposure to risk, typically from an accident/ health and safety view point. May include driver training programmes, or reviewing company procedures regarding the length of a working day and hours spent behind the wheel. Again within the fleet market there are specialist suppliers of these services.
This is the final value of the vehicle when it comes to the end of its life on the fleet. It reflects the second hand worth of the vehicle in the often volatile used car market. The purchase price of the vehicle less the residual value provides the vehicle’s depreciation cost, which is typically the largest single operating cost of a vehicle.
The period of time a vehicle will remain on a fleet before being replaced with a new or newer vehicle. Decisions should be based on valid criteria whether under ownership or leasing, and usually is defined as a combination of annual time and mileage eg. 4 years or 80,000 miles. Length of replacement cycle usually based on vehicle type, reliability, cost and employee status.
Most contract hire agreements which include maintenance, also provide use of a relief or temporary replacement car if the subject car is off the road beyond a specified period (eg 24 or 48 hours). Many such provisions are made through rental companies appointed by lessor.
A spoiler is a body part designed specifically to improve the flow of air around a vehicle body, either to lower the aerodynamic resistance of the vehicle, or, sometimes in high-performance vehicles, to create a down-force on the wheels to improve vehicle traction and stability. A rear spoiler may be a separate wing-like entity mounted on the roof or boot lid, or an aerodynamic shaping of the surface of the rear part of the roof or boot lid.
A flexible guard usually of plastic or rubber, positioned behind the rear wheels to prevent stones, mud or water spray being thrown up from the wheels.
In a disc brake a disc or rotor is straddled by a stationary caliper. When the brake is depressed, the calliper closes onto the disc, creating friction that progressively slows and stops the wheel. Disc brakes have virtually superseded drum brakes on the front wheels of nearly all cars, although smaller, lower-priced vehicles may still utilise drum brakes on the rear wheels.
Is the acronym for 'Sports Utility Vehicle' (also known as off-roader or 4x4) these are vehicles which have the capability to be driven off-road, characterised by higher ground clearance than other passenger vehicles and rugged construction and appearance - usually, but not exclusively, featuring all wheel drive.
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.
If a decision is made to move into leasing from outright purchase it is usually best to change as quickly as possible. Sale and leaseback is available from most lessors and involves them buying existing car fleets at agreed value (eg Glass’s Guide/ CAP; or similar). Each unit is allocated a “remaining life” to end of “normal” replacement cycle, with rentals calculated accordingly. When they are finally defleeted new leased vehicles are introduced.
This system provides rapid, easily managed transition into leasing/ contract hire - usually provides a cash surplus as well, from sale of owned assets. Watch terms for very old or very young units in the deal
Periodic payments (usually monthly/ quarterly) by lessee (user) to lessor (owner) to cover all the cost factors including the lease agreement. Usually they are fixed for the agreement period, and always attract VAT.
This is specifically a tyre repair kit that substitutes for a spare wheel allowing a punctured tyre to be re-inflated 'in situ' so that the vehicle can be driven to a repair facility.
This is a dashboard mounted device that calculates and displays information from a variety of vehicle systems, most usually displaying: fuel consumption, the distance that can be covered on remaining fuel, and average speed. A clock and an external temperature display are also commonly included.
The transmission is the mechanism, normally consisting of gears, belts and/or hydraulic components, that transmits power from an engine to the driveshaft that turns the vehicle's drive axles and wheels. (i.e.manual.automatic)
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.
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.
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.
These produce a much brighter light than normal headlights whilst using less energy. They increasee brightness by up to 2.5 times more than halogen lights whilst using 33% less energy.
