Monthly Lease Vehicle Program (MLVP)

Monthly Lease Vehicle Program (MLVP)

September 12, 2013

UCLA Fleet utilizes working capital to acquire long-term usage vehicles for campus departments who elect not to use departmental funds. UCLA Fleet collaborates with campus departments in developing the appropriate vehicle configurations and specifications, based on vehicle usage, route requirements and application needs.

All monthly leased vehicles are required to be covered by a Maintenance Service Contract and be insured through the Office of Insurance & Risk Management. Campus Parking Permits for University vehicles are obtained by departmental parking coordinators.

Lease Process

An internal lease contract is developed which includes terms, conditions and monthly charges. The terms of the lease are consistent with the life-cycle of the vehicle. UCLA Fleet utilizes a Lease Rate Worksheet to calculate monthly departmental recharges comprised of depreciation, STIP and UCLA Fleet Management Fees.

There are three phases to the lease contract:

  1. Initial Lease Option (ILO) – Monthly charges begin the first day of the month following delivery of the vehicle to campus and continue to the end of the ILO period.
  2. Extended Lease Option (ELO) – At the end of the ILO period, monthly charges are reduced over an additional three years, unless the lease is terminated by the department.
  3. Post-Extended Lease Option (PELO) – At the end of the ELO period, monthly charges are further reduced until the lease is terminated by the department.

Near the end of each lease phase, UCLA Fleet sends a letter to the department offering them the choice to return the vehicle, retain the vehicle or retain and purchase the vehicle.