Lease Frequently Asked Questions

Q:  How is fuel and maintenance taken care of if I have a lease vehicle?
 
A:  Fuel is billed out at the end of the month according to how much is purchased either by filling up at the Minneapolis or St. Paul campus fuel islands.  If the Voyager credit card is used, those charges will also be billed out at the end of the month.  Vehicle maintenance costs are covered under the mileage fee.  This fee is based on the type of vehicle that is leased.  Our system’s campus leased vehicles are responsible for their own campus fleet maintenance costs but are not assessed a monthly mileage fee.
 
Q:  Which is cheaper -- a vehicle leased monthly or a rental vehicle?
 
A:  The answer to this question depends upon the individual needs of the department and drivers and how often the vehicle is used.  Over the course of a year, a lease vehicle will cost about half as much as the cost to rent a vehicle of a similar type for sporadic use.  The difference is a lease requires that you pay a minimum of one year’s worth of monthly lease costs, with a 90-day notice after the first year to return the vehicle to Fleet.  Leasing a vehicle also provides a department with some flexibility in deciding exactly what vehicle options are needed in order to meet work needs.   
 
Q:  How is insurance handled with a lease vehicle?
 
A:  Insurance cost is based on the type of vehicle leased and will be billed at the end of the month for either the whole month or a portion of the month, depending on when the vehicle was put into service.  
 
Q:  How long is a lease?
 
A:  A University vehicle lease is required to be held for a minimum of one year and a maximum of 10 years.  After the first year of a lease, a 90-day advance notice is required if the vehicle lease is terminated.   If Fleet Services is able to find another department that would like to assume the lease, the 90-day advance notice for termination can be waived.
 
Q:  Where may I park my lease vehicle?
 
A:  Interested departments that lease University vehicles on the Twin Cities campus must call Parking & Transportation Services at (612) 625-7275 to make arrangements for campus parking.  The Twin Cities campus offers many options for ramp and lot parking on a monthly or daily basis.  System campuses across the state have various options for parking and each campus should be contacted individually for more information through Facilities Management or Transportation department contacts.