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What Is a Fleet Vehicle?

Lauren Clifford
Written by Lauren Clifford
Jessica Sain-Baird
Edited by Jessica Sain-Baird
Updated on: April 28, 2025 Content was accurate at the time of publication.
We are committed to providing accurate content that helps you make informed money decisions. Our partners have not commissioned or endorsed this content. Read our editorial guidelines here.
Key takeaways
  • A fleet vehicle is a car owned or leased by a company, organization or government agency rather than a person. 
  • You can customize, or “upfit,” a fleet vehicle with features that help you do the kind of work you need your vehicle to do, like pick up trash cans or plow through snow.
  • It’s possible to buy a used fleet vehicle, but you should weigh the cons and get a thorough inspection before you do.

What is a fleet car?

Fleet cars are owned or leased by businesses or government agencies instead of individual people. Multiple fleet vehicles managed by the same company or agency are called a “fleet.”

Some fleet vehicles look like typical passenger cars, but others are used for specific purposes like hauling goods or rescuing people.

Types of fleet vehicles

Companies have different kinds of fleets depending on the work they need to do. Fleet vehicles can be:

  • Passenger cars used by employees or rented out to customers (think Enterprise or Hertz)
  • Service vehicles like ambulances and police cars
  • Commercial vehicles like buses, cargo trucks or construction vehicles

One business or agency can have several different types of fleet vehicles, or they can fill a fleet with a particular type.

Fleet vehicle benefits

Business owners who buy their fleet from the same manufacturer can take advantage of benefits like:

  • Discounts and warranties. Manufacturers often offer discounts for buying multiple fleet vehicles — think of it as a fleet vehicle sale. They also offer fleet-specific warranties.
  • Fleet management software and services. You can manage your fleet from your computer with fleet management software, which comes standard with most fleet vehicles (though you’ll likely have to pay a fee or subscription). Manufacturers like Ford also offer fleet management services to help you renew registration and manage tolls and traffic violations.
  • Special incentives. Automakers often offer incentives like free, limited-time roadside assistance and maintenance plans on fleet vehicle purchases.

How fleet vehicles are used

Put simply, fleet vehicles are used for work. 

Construction companies own a fleet of construction vehicles, rental car companies own a fleet of passenger cars and police departments own specialized police service vehicles.

Businesses can customize or “upfit” their fleet cars with parts that help the vehicle perform specialized jobs — think cranes and dumps on construction vehicles and partitions inside ambulances.

Buying a fleet car for business

If you’re a small business owner buying your first fleet, do some research before getting a business auto loan. Here’s a quick checklist to reference in your search:

  • Research multiple manufacturers. Each automaker offers different fleet vehicle benefits and incentives, so get quotes from several before making a commitment.
  • Choose how you’ll pay. Depending on the manufacturer, you can buy the vehicles outright, take out an installment loan or lease your new fleet. Discuss your options with the manufacturer and run the numbers to see which option suits your budget and business needs.
  • Optional: Find an upfitter. Manufacturers work with different upfitters, or third-party companies that manufacture parts to prepare fleet vehicles for specific types of work. Ask your manufacturer for a list of recommended upfitters for the type of work you need done.

Buying a fleet car for personal use

Used fleet vehicles often come with low price tags, but take precautions before buying one. Even if the fleet car you’re eyeing looks like the other used cars on the market, it may have been through the wringer before it made it to the car lot. 

Some fleet cars have had multiple drivers, like different employees or rental car customers. There’s no guarantee that these drivers reported accidents or other incidents that affect the condition of the car.

Plus, when you buy a rental car or other used fleet vehicle, you won’t get the chance to ask the driver questions about the vehicle’s history and maintenance.

Avoid buying a lemon

It’s even more important to know what to look for in a used car when you’re buying a used fleet vehicle. At the very least, get a prepurchase inspection and take it for a test drive to avoid getting a lemon.

Frequently asked questions

Ford’s F-Series trucks are a popular choice for fleets, according to Kelley Blue Book, but sedans in general are also popular. Learn more about what car you should buy.

Buying fleet vehicles for your business may help you save money with discounts and other benefits, and companies like Nissan allow you to take advantage of these benefits with as few as two fleet cars.

But used fleet vehicles come with more risks than other pre-owned cars, so do a VIN check and have a trusted mechanic inspect the fleet vehicle before you buy it.

Fleet vehicles depreciate faster than other cars. In other words, they don’t retain their value because they’re used frequently for business purposes rather than more occasionally for personal use.

If you see the term “fleet vehicle” on your Carfax vehicle history report, that means the car was used for business purposes. There are many different ways to use a fleet vehicle, but sedans are commonly used as rental cars or company cars for employees of a particular business.

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