The purpose of Fleet management is

The purpose of Fleet management is simple, it aims to ensure that a company only pays the appropriate and reasonable running costs. These purchase and running costs are itemised to the company on a monthly basis, a feature that allows you to monitor the status of your existing fleet, track any costs incurred and the savings you make.

In practice, fleet services are provided alongside financing, with running costs and lease rentals being invoiced separately on a monthly basis. The fleet management company buys the car (acting as the agent of the user), pays all running costs and disposes at termination (acting again as an agent). The user is invoiced monthly with the actual costs incurred by the fleet management company. As a result, the outgoings can vary considerably from month to month.