When configuring your Cost Recovery Settings, there are three separate options to set: Fuel, Fuel Convenience Fee, and Fuel Charge Allowance.
Fuel:
Charging Fuel allows your dealership to recover the cost for fuel used. The amount is set per gallon, so the charge collected will vary depending on the amount of fuel used by your customer.
Fuel Convenience Fee:
This is a flat fee applied if the customer returns with less gas than they started out with. The fee stays the same, whether they used one gallon or the whole tank.
Fuel Charge Allowance:
A minimum dollar amount required before a fuel charge is processed.
Example A (without Fuel Charge Allowance):
Your dealership has enabled charging for Fuel at $3 per gallon and a Fuel Convenience Fee of $5.
A vehicle is loaned out with a full tank of gas and is returned with 4 gallons less.
The charges are calculated as follows:
(Fuel Charge x Fuel Used) + Fuel Convenience Fee = Total Charge
($3 x 4) + $5 = $17
When the contract closes, there will be a $17 balance.
Example B (with Fuel Charge Allowance):
Your dealership has enabled charging for Fuel at $3 per gallon, a Fuel Convenience Fee of $5, and a Fuel Charge Allowance of $10.
A vehicle is loaned out with a full tank of gas and is returned with 1 gallon less.
The charges are calculated as follows:
(Fuel Charge x Fuel Used) + Fuel Convenience Fee = Total Charge (only applicable if total charge is less than $10)
($3 x 1) + $5 = $8
When the contract closes, the customer will not owe any money because the total charge was less than the $10 Fuel Charge Allowance.