The ability to be profitable in car rental often comes down to cutting costs and increasing revenue by even small amounts wherever possible. This is especially true in the area of refueling costs and charges. CARS+ provides many different ways to set up fuel charges. These methods fall into the following three general categories:
Fuel At Close = a charge is added to the RA at the time of Close for any fuel used.
Pre-Paid Fuel = a charge is added at the time of Open for either a full tank of fuel of for a half tank of fuel.
Fuel Cards = when opening the RA, the rental car company gives the renter a fuel company credit card to charge all fuel charges. As a result, all fuel charges are added to the rental agreement.
Within each of these three general methods, there are set up variations that can result in many different ways that fuel can be charged.
The CARS+ Fuel Card logic has its own chapter: Overview - Fuel Cards. This chapter, therefore, will discuss the other two methods:
The CARS+ Electric
Vehicle logic has its own chapter, for more
information regarding this feature see the Overview Electric Powered Vehicles chapter in the manual.
Simply stated, when opening a rental agreement, the counter agent is required to indicate the vehicle's fuel tank level (in eighths of a tank). This is the 'check out fuel level'. At the time of closing the RA, the agent once again indicates the fuel tank reading. This is the 'check out fuel level'. The difference between these two readings is used to calculate the refueling charge.
Five basic facts are required to do a fuel calculation when closing a RA:
The first of the these is entered on the individual rental agreement when the contract opens and closes.
The second, third and fourth facts (tank capacity, EMPG/EKPL, and fuel type) are entered into the fleet record of the vehicle when it is in-fleeted. (The tank capacity and EMPG/EKPL come from the Model Code record and are automatically loaded).
The final fact, rate per gallon or liter, is entered via the Edit Fuel Rates program. This program allows the user to set the price per gallon/liter for various types of fuel (gasoline, diesel, ethanol, etc.). As general practice, the price per gallon/liter for fuel at close is set higher than the prevailing pump price so as to recoup some of the labor cost for having to fill the tank. These prices can be made to vary by:
- Location
- Date
- CDPID privilege
Separate programs are available that grant users ability to edit only the Fuel at Close Rates or the Pre-Paid Fuel rates.
1. Note that standard logic within CARS+ dictates that the rate for prepaid fuel is based on the opening location’s fuel rate, and the rate for fuel charged at close is based on the closing location’s fuel rate. A field in the Edit Miscellaneous Control Fields (Page 4, Field 14, "Fuel Rate from Open") allows the system to be configured so that all fuel rates will be based on the rates from the opening location.
2. Notoriously, manufacturers have designed vehicles so that the fuel gauge does not accurately register the first eighth to a quarter of a tank. As a result a renter can often drive 30 to 50 miles or kms and the fuel gauge does not register any decrease in tank level. To compensate for that, CARS+ offers the following:
a. In Edit Fuel Rates, the user can configure the system to add a 'topping off' charge when the tank level at Close is the same as it was at Open and the distance driven is less than a configurable limit. This can be configured to happen automatically or as a result of a question as to whether fuel was purchased.
b. An alternate topping off charge is also available in Edit Fuel Rates. Under this method, a flat topping off fee is defined along with a mileage/kilometer limit. If the customer drives under the distance limit and doesn't refill the tank, the flat fee is charged for fuel. If the customer goes over the mileage/km limit and doesn't refill the tank, then the refueling rate (Fuel at Close) applies to the RA.
c. In Edit Fuel Adjustment Codes, the user can have CARS+ compensate for the inaccuracy of the tank level. For example, by setting the 1/8ths consumed field to 120%. the following calculation change occurs:
Assume a vehicle has a 16 gallon tank. If the vehicle checks in with the fuel gauge reading 7/8, it would mean that the tank contained 14 gallons (7/8 of 16) and that 2 gallons had been used. Assuming that fuel is charged at $4.00 per gallon, the charge would be $8.00 (2 gallons x $4.00).
However, when a fuel gauge on a 16 gallon tank reads 7/8 it is more likely that perhaps 3 gallons may have been actually used. By entering a percentage in this field, a more realistic amount can be charged. The percentage entered in this field is used to multiply the default fuel charge and the result is then used for the fuel charge on the contract.
Using the above example, if a Fuel Code of 120 percent was involved, the charge for fuel would be $9.60.
(1/8 of 16 gallons = 2 gallons x $4.00/gallon = Unadjusted charge of $8.00 x 1.20 = $9.60)
3. CARS+ has several ways to calculate a Fuel at Close charge at the time of RA Close: tank level (eights), miles driven, topping off fee, etc. A field in Edit Miscellaneous Control Fields (Page 6, Field 8, "Calc Fuel on Tank Only") can be set to turn off all logics other than the comparison between tank level in vs tank level out. At Close, this will eliminate the question "CALC FUEL ON TANK LEVEL (Y) OR DISTANCE TRAVELLED (N)".
4. When a renter returns a vehicle with more fuel than was in the tank at the time of open, a field in Edit Locations (Page 3, Field 24, "Issue Credit for Fuel") determines if a credit is issued for the extra fuel.
5. With the recent increases in fuel prices, some rental operations are hesitant to price Fuel at Close at a rate much higher than the prevailing pump prices. Yet they still want to favor Pre-Paid Fuel and recoup the labor cost involved in filling the car. Edit Fuel Rates has an option field for a Closing Surcharge Option. When there is an Option Code in that field and a Fuel Charge is applied to the rental at Close, the Option Charge is automatically applied as well. The price for this option is set in the Optional Items Rates file and can be made to vary by location, Pricing Code, Privileges, etc.
These configuration fields allow for 36 ways of doing Fuel at Close.
The traditional Pre-Paid Fuel logic (also known as the Fuel Purchase Option) involves selling the renter the fuel already in the vehicle at the time of Open (either for a full tank of fuel or a half tank) and adding the charge to the rental at that time. At the time of Close, no additional fuel charges are applied.
In addition to the the same basic set-up required for Fuel at Close, within the Edit Fuel Rates, a rate per gallon/liter for Pre-Paid fuel also needs to be entered. To encourage the sale of pre-paid fuel, it is customary that the rate per gallon/liter charged for Pre-paid fuel is less than the rate charged for Fuel at Close and sometimes may be less than the current retail price at the pump.
1. Odometer minimum: If the renter selected the Pre-Paid Fuel option at Open (thus "buying" a full tank of gas), yet at Close had only driven 20 miles/kms, charging for the full tank may be seen as excessive. To prevent that from occurring, a field in Edit Miscellaneous Control Fields (Page 1, Field 36, "Prepaid Fuel Odom Min") allows the system to be configured so that even if Pre-paid Fuel was selected at Open, if the total distance driven is less than the configurable limit, the Pre-Paid fee will be automatically removed from the contract and the renter will be charged based on the distance driven.
2. Remove Pre-Paid Fuel if returned full: Fields within CARS+ can define whether the rental agent can manually remove the Pre-Paid Fuel charge at the time of Cgeneralose if the vehicle was returned with a full tank. These fields are:
- In Edit Miscellaneous Control Fields (Page 6, Field 23, "Full FPO when fuel was purch?") allows the Pre-Paid Fuel charge to be removed by all users at all locations.
When this field is set to "Y" and the FPO is removed, a field in Edit User Access File (Page 4, Field 5 Close FPO Edit) can be used to prevent the user from accessing the fuel level and fuel charge field.- In Edit Rental Locations (Page 6, Field 28, "Full FPO when fuel Purch?") allows the charge to be removed when closed at selected locations
- In Edit User Access File (Page 3 Field 34, "Full FPO when fuel Purch?") , allows the delete ability to be granted to selected employees.
3. Sell a half tank: A field in Edit Miscellaneous Control Fields (Page 6, Field 16, "Half Tank FPO") or Edit Locations (Page 6, Field 26, "Half Tank FPO") can be used to turn on the ability to pre-sell half tanks of fuel at Open.
User Tip: There is a feature in Edit Misc Control Fields (Page8) that would require that ONLY a full tank of fuel will be offered for Pre-Purchase. NO partial tanks will be allowed. This also can be defined by location in Edit Locations.
4. Add a surcharge: Rather than encouraging the sale of Pre-Paid Fuel, some rental operators desire to charge an additional surcharge whenever Pre-Paid Fuel is sold. A field in Edit Miscellaneous Control Fields (Page 6, Field 31, "PPF Srchg Opt Code") allows for the definition of a Pre-Paid Fuel surcharge option.
5. Make it an automatic charge: CARS+ can be configured to automatically set the Pre-Paid Fuel flag on to "Y" (thus, selling it) when opening every RA. The flag can be changed to "N" by the agent opening the RA if needed. To have the system configured in this manner, contact Thermeon Customer Support to have GVT record "PPDFUEL" set up.
6. Automatic charge and surcharge with credit for fuel returned: In this configuration:
- the Pre-Paid fuel charge is automatically applied to every RA (either system-wide or by location)
- a percentage surcharge is automatically charged on the Pre-Paid fuel charge
- a credit is automatically given for the fuel in the tank at Close.
This configuration requires the following set up:
a. To make the Pre-Paid fuel charge automatic system-wide, indicate that in the "FPO Mandatory" field in Edit Miscellaneous Control Fields. If turned on in Edit Misc., the feature can be turned off by location by entering "N" in the FPO Mandatory field of the location record. Or, to make the charge automatic location by location, enter a "Y" in the "FPO Mandatory" field of Edit Locations.
b. Set up a Fuel Surcharge Option for the Fuel Surcharge (Option Type "O", percentage calculation, dependently applied).
c. Set up a Fuel Credit Option for the credit that will be applied for the fuel in the tank at Close. (Type "O", flat fee, dependently applied, no rate.)
d. Enter the Fuel Surcharge Option code in the "PPF Srchg Opt Code" field of Edit Miscellaneous Control Fields.
e. Enter the Fuel Credit Option Code in the "Gas Credit Option" field of Edit Miscellaneous Control Fields or in Edit Locations.
When a CDPID or Rate indicates mandatory Pre-Paid fuel, the Pre-Paid Fuel and the Surcharge will be applied to the RA.
User tip: If the record in Edit Fuel Rates is set up with a top-off fee, and an option code is entered for a fuel credit in Edit Misc. or Edit Locations, and the vehicle is returned with the same level of fuel as it had at Open, the top-off fee will not apply.
These configuration fields allow for numerous ways of doing Pre-Paid Fuel. If both Fuel at Close and Pre-Paid Fuel are offered, CARS+ allows hundreds of different ways that fuel can be charged.
7. Daily Fuel Charge -
D = Per Day charge. In order to enter a “D”, the system must be configured to offer a per day charge for fuel. Entering a "D" in this field places a daily rate for fuel on the RA. However, the fuel charge will not exceed the prepaid fuel rate for a full tank.
To set up the Daily charge for fuel, in Edit Option Rates, the daily rate must be entered in the Primary Rate field and the calculation method must be set to "D". The system will charge the lesser of the daily rate or the prepaid fuel rate for a full tank.
The following reports are available to audit the fuel charges on RAs.
Fuel Price Audit Report This report lists the effective fuel rate price records for the location(s) requested.
- Obtain a listing of fuel charges billed to the customer on each RA.
- Obtain a listing of fuel charges by vehicle number or license plate number.
- Compare the fuel charges on RAs to what would be the fuel charge for the amount of fuel used to fill the tank when the vehicle was washed and prepped immediately following the close of the RA.
- Audit fuel charges with a manually written refueling log kept by the lot personnel.
- Determine if the fuel charge should be corrected on a RA
Prepaid Fuel Report Use this program to obtain a report of prepaid fuel sales on closed and posted RAs.