This article provides fleet managers with an overview of how Ryder bills both contractual and rental units. It describes the usual fixed and variable billing methods for ChoiceLease–SelectCare vehicles, why it's important to send in meter readings using RyderGyde™ for correct billing, and how annual mileage, rate hikes, and extra charges are calculated based on the contract. It also outlines how different rental unit types—such as Lease Extra, Await New Lease, Accident Extra, and Sub for Maintenance—are billed in arrears according to negotiated rates, with billing frequency varying by rental purpose and duration.

Contractual Units

ChoiceLease - SelectCare: The standard billing frequency for contractual charges is monthly. The fixed charges are billed for the current month, and the variable charges are billed for the previous month. There are additional billing frequencies available, which may be set up based on your accounting calendar. Examples include:

• Monthly (Example: 1/01–1/31)
• 4 weeks, 4 weeks, 5 weeks
• 13 months (every 4 weeks)
• Weekly

Submitting readings through RyderGyde™ is considered the best practice to ensure proper and timely billing of variable charges. Variable charges include miles/kilometers, refrigeration hours, standby hours, and yard tractor hours. Submitting readings through RyderGyde™ is considered best practice to ensure proper and timely billing. The due date is visible, and the user can set up an alert or email reminder. If readings are not provided, the Ryder sources used for billing are repair orders, fuel, and Rydesmart. If a current reading is not available, units are billed an estimate based on the annual rated miles/km/hours in their agreement.

Annual Rated Mileage

Each Ryder-leased vehicle or vehicle listed under a maintenance program contains an estimated annual mileage provision. You may operate any vehicle only up to XX% above the estimated annual miles for any 12-month period, as listed on each vehicle schedule. If during any 12-month period, the actual mileage on any vehicle exceeds the estimated annual usage listed on the Schedule A by XX%, then in addition to all other rights and remedies hereunder, Ryder will assess a surcharge of $0.XX per mile for all miles over the original estimated annual allowance.

Rate Increase: The agreement and schedule dictate the increase in fixed and variable rates. Ryder utilized the index published by the Bureau of Labor Statistics to calculate the percentage increase. Apply the change based on the most current index available for the months prior to the effective date of the rate change. Example: the October index will be used for the January rate change. Use the initial rate and the base index, which is the unit's in-service month and year, to increase.

Surcharge Billing: If a unit runs in excess of the annual rated mileage/hours, a surcharge billing will be assessed. The language on the agreement determines the allowable miles/hour and the surcharge rates. The miles billed on your fixed and variable invoice will be utilized to determine the number of miles run during the reconciliation period. Providing readings in RyderGyde™ will assist in capturing the true number of miles/hours running during the reconciliation period.

Rental Units

Billing setup varies depending on the rental unit. 

• Lease Extra is a vehicle available for short-term use, charged only for the actual time and mileage used, and covered by a signed agreement. Billing for Rental vehicles occurs in arrears. Billing can be set up as daily and occurs in arrears. Example: Billing occurs on December 1st for charges from November 1st to November 30th (if the customer is set up for monthly billing). The amount billed is based on negotiated rates.
• Await New Lease vehicle is a rental vehicle used by lease customers as a substitute until their new lease vehicle is received. Billing can be set up as daily, weekly, and monthly and occurs in arrears. Example: Billing occurs on December 1st for charges from November 1st to November 30th (if the customer is set up for monthly billing). Please note, the timing of the new lease and your new vehicle going into service may result in two months of billing in one invoice. For example, rental fixed charges for February and Lease charges for March will be on the same March invoice. The amount billed is based on negotiated rates. 
• Accident Extra is a rental vehicle used by lease customers when their vehicles are down due to accident repairs. Billing for this service occurs in arrears, where the billing cycle can be set up as daily, weekly, or monthly. The amount billed is based on negotiated rates. 
• Sub for Maintenance is a rental vehicle provided to a lease customer as a substitute for the lease vehicle while it’s in the shop for a PM or other maintenance. This service can be set up as daily, weekly, or monthly. The amount billed is based on negotiated rates.

For inquiries related to fixed variable billing, please contact NOW@ryder.com.

Common Questions