Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt The A-Z of fleet guide
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The A-Z of fleet guide

Date: 26 March 2012

Businesscar's complete alphabetical guide to fleet industry's vital terms and phrases.(M-R)



The number of miles driven, and for fleets, travelling expenses according to the distance covered.

Mobile phones

Seen as vital to keep in touch with drivers in the field, although some companies have banned staff from using mobile phones connected to Bluetooth devices when driving after research showed there was a large increase in the risk of accident. It is illegal to use a hand-held device while driving, but making or receiving calls via Bluetooth is legal, although prosecution for driving without due care and attention is possible if police feel being on the phone was a contributory factor to poor driving.

MoT test

A test on a vehicle to ensure it is roadworthy and meets road safety and environmental standards. These are an annual legal requirement once a vehicle is three years old.


Miles per gallon. The distance, measured in miles, a car can travel on one gallon of fuel. Broadly speaking, cars are becoming more efficient, which means mpg figures are rising, making driving more cost-effective. Fleets measure mpg to monitor fuel use and efficient driving, while the manufacturer's official combined cycle mpg figures are used to judge one vehicle against another.


National Insurance

A charge paid by companies to the Government for every perk given to an employee, such as a company car. Paid by an employer on an emissions basis, it is liable if it provides a car to a director or to an employee that earns more than £8500 a year.



Priced extras on a vehicle that are optional when buying. Popular options include satnav, parking sensors and heated seats. Drivers have to pay tax on the cost of the options fitted to their cars, as a vehicle's P11D figure is based on the cost after options are added.

Outright purchase

Buying and owning a car or fleet of cars, opposed to other means of acquiring vehicles such as rental, contract hire or lease.


Obtaining a service from an outside supplier, for example fleet management services or accident management.


P11D form

A form filed at tax year-end by an employer detailing the return of benefits and expenses of its employees, such as their company cars.

P11D price

The P11D price of a car is the list price including options, VAT and delivery charges, but does not cover the vehicle's first registration fee or annual road tax.

Plug-in hybrid

A vehicle that runs on electric or an internal combustion engine, and can be plugged in to charge its electric battery rather than only relying on regenerative braking and engine power like standard hybrids.

Pool cars

A car owned or leased by a company that is shared between employees for business purposes only.

Private sector

Companies controlled independently and for-profit, free from governmental control.

Public sector

Any organisation controlled by the Government and publicly funded, including local authorities, governmental departments and the NHS.

Premium badge

The higher-end car brands including BMW, Audi, Mercedes-Benz, Jaguar and Lexus, and often those desired most by company car drivers.



A vehicle hired for short or long term. For fleets, rentals are sometimes used instead of pool cars or grey fleet, or to bridge a gap between contract hire vehicles.

Residual values

The amount a car is expected to be worth compared with the original value at the end of its useful life, for example, after a three-year lease.


The disposal of fleet and leasing vehicles that have reached the end of their time with a business, often through auction houses.

Replacement cycles

The period of time, traditionally three years, a leased vehicle is on a fleet before it is replaced. Replacement cycles have been extended in recent years due to difficult economic conditions.

Risk management

Vital for company's duty of care obligations, risk management includes risk auditing, telematics, licence checking and driver training, as well as addressing mobile phone policies, grey fleet, winter planning and tyres.

Road safety

An umbrella term referring to the safety of drivers and pedestrians by educating staff to drive safely to reduce road accidents.


Repairs or improvement of roads often resulting in delays and obstructions for motorists.

A-Z continued