Toll-Management solution

Dealership Toll Management Program

Managing toll road expenses can be a significant challenge for dealerships, particularly those with a fleet of service vehicles or loaner cars. Without a streamlined system, tracking these costs can quickly become cumbersome, leading to lost time, increased administrative work, and potential errors in billing. Software designed specifically to manage toll road expenses offers a solution that automates the tracking, recording, and reporting of these costs. This not only reduces the burden on dealership staff but also ensures that expenses are accurately captured and easily accessible for financial reporting and customer billing.

Additionally, using software to manage toll road expenses helps dealerships avoid the pitfalls of missed payments or late fees, which can quickly add up and affect the bottom line. Automated payment processing ensures that tolls are paid on time, while detailed reports provide a clear view of expenses associated with each vehicle. This level of transparency and control allows dealerships to manage their budgets more effectively, allocate costs appropriately, and ultimately, improve overall financial management.

Toll Roads differ by State

Toll roads are a common feature in many states across the United States, with each state managing and implementing them differently. These roads are typically used to help fund the construction and maintenance of highways, bridges, and tunnels. States like Florida, Texas, and California have extensive toll road systems, reflecting their significant investment in infrastructure to manage high traffic volumes. However, the cost of using these toll roads and how drivers are notified of tolls can vary widely from state to state.

In Florida, for example, toll roads are prevalent and cover a vast network across the state. The state has adopted a modern approach with systems like SunPass, which allow for electronic toll collection. The cost of using these roads varies depending on the specific road and the type of vehicle, with fees generally ranging from a few cents per mile to several dollars for longer stretches. Florida is known for clearly marked signage that informs drivers of upcoming tolls, along with frequent reminders about the availability of SunPass for easier payment.

Texas, with its expansive toll road system, offers a different experience. The state’s tolls can be slightly more expensive than those in Florida, particularly on newer roads in metropolitan areas like Dallas and Houston. Texas uses the TxTag system for electronic toll collection, but it also accommodates other payment options like EZ TAG and TollTag, which are interoperable with systems in neighboring states. Texas tends to use a combination of electronic signs and physical toll booths to notify drivers of upcoming tolls, with some roads offering variable pricing based on traffic conditions.

California, known for its congested highways, has also embraced toll roads, particularly in the southern part of the state. The cost of tolls in California can be among the highest in the country, especially on routes like the 91 Express Lanes in Orange County. California uses the FasTrak system for toll payments, and like Texas, some tolls can vary depending on the time of day and traffic levels. The state is proactive in notifying drivers of tolls, with ample signage and electronic message boards that update drivers on current toll rates.

In contrast, states like New York and New Jersey, while also heavily reliant on toll roads, tend to have more traditional toll collection methods, though they are rapidly modernizing. These states have some of the highest toll rates, particularly on major bridges and tunnels entering New York City. They have historically used a mix of cash lanes and electronic toll collection systems like E-ZPass, but there is a strong push towards fully electronic tolling. Signage is prominent, especially in congested areas, ensuring that drivers are well aware of the upcoming charges.

Overall, while many states in the U.S. use toll roads as a means to fund transportation infrastructure, the cost and notification methods vary significantly. States like Florida and Texas offer relatively affordable tolls with modern, driver-friendly notification systems. In contrast, states like California and New York might present drivers with higher costs, but they compensate with detailed and timely notifications. Understanding these differences is crucial for drivers who frequently travel across state lines, as it helps them anticipate expenses and choose the best routes for their journeys.

Drivers May Not Be aware Of Impending Toll Charges

Despite the widespread use of toll roads across the United States, drivers may not always be aware that they are incurring tolls. This can happen for several reasons, including inadequate signage, unfamiliarity with local tolling practices, or the increasing use of electronic toll collection systems that do not require drivers to stop and pay at a booth. As a result, drivers may unknowingly pass through toll points, only to receive a bill weeks later or find unexpected charges on their electronic toll accounts.

One common scenario where drivers might miss toll notifications is when they are driving in an unfamiliar area. Many states have adopted electronic toll collection systems like E-ZPass, SunPass, or FasTrak, which rely on overhead gantries to read transponders in vehicles or capture license plate information for billing. These systems are highly efficient, but they can also be less noticeable to drivers compared to traditional toll booths. If a driver is not familiar with the local tolling system or does not notice the signage, they might not realize that they have entered a toll road until after the fact.

Another issue arises from the variation in toll road signage across different states and regions. While some states, like Florida, are known for their clear and abundant signage, others might have less obvious notifications, particularly in congested urban areas or on newly implemented toll roads. In some cases, tolls might be charged on express lanes or high-occupancy vehicle (HOV) lanes that run parallel to non-toll lanes, further adding to the confusion. Drivers who are not actively looking for toll signs or who are focused on navigating complex traffic patterns might inadvertently enter a tolled lane without realizing it.

The rise of all-electronic tolling (AET) has also contributed to the issue. With AET, there are no toll booths where drivers stop to pay, and all tolls are collected electronically, either through transponders or license plate billing. While this system is convenient, it can be easy for drivers to miss the fact that they are on a toll road, especially if they do not have a transponder or are traveling in a rental car. This can lead to surprise charges later, which may come as an unwelcome shock, especially if the driver was unaware of the toll in the first place.

Toll Charges Are The Responsibility Of the Vehicle Owner - Not the Driver

Toll charges are typically billed to the car owner through electronic toll collection systems, which automatically charge toll fees based on the vehicle’s license plate or an onboard transponder linked to a payment account. When a vehicle passes through a toll point, sensors capture the transponder’s signal or take a photo of the license plate, and the corresponding toll is deducted from the owner’s account. This method is widely used because it is efficient and minimizes traffic congestion by allowing vehicles to pass through toll points without stopping. However, the specifics of how these charges are processed and billed can vary depending on the toll agency.

For instance, in states like Florida and Texas, toll agencies operate systems like SunPass and TxTag, where drivers must set up a prepaid account linked to a transponder. When a vehicle equipped with a transponder passes through a toll point, the toll fee is automatically deducted from the prepaid balance. If the balance falls below a certain threshold, the account is automatically replenished using a linked credit card. In cases where the vehicle does not have a transponder, the toll agency may use a “pay by plate” system, where a bill is sent to the registered owner’s address based on the license plate captured at the toll point. This method usually incurs additional fees to cover the cost of processing and mailing the bill.

On the other hand, toll agencies in states like California and New York might use slightly different approaches. In California, the FasTrak system also relies on transponders and prepaid accounts, but the state offers more flexibility in how tolls are paid, including options for one-time payments or post-payment within a specified period after traveling on a toll road. New York’s E-ZPass system, which is part of a larger network used across several states in the Northeast, similarly deducts tolls from a prepaid account. However, in areas like New York City, where tolls are high, failure to pay via E-ZPass or receive a bill by mail can result in significant fines. These differences in toll billing practices highlight the importance of understanding the specific policies of the toll agency in each state or region where a driver may travel.

Drivers are not always Aware

A driver may not always be aware that they have incurred a toll charge due to the increasing prevalence of electronic toll collection systems and the subtle nature of tolling infrastructure. In many states, toll roads are no longer marked by traditional toll booths where drivers stop to pay. Instead, overhead gantries equipped with cameras and sensors automatically capture license plate information or read transponders as vehicles pass beneath. This seamless process, while convenient, can lead to situations where drivers pass through toll points without realizing it, especially if they are unfamiliar with the area or the tolling system in use.

One common scenario where this occurs is on highways that have both toll and non-toll lanes, such as express lanes that run parallel to regular lanes. Drivers may unintentionally enter a toll lane, especially during heavy traffic when they might be focused on navigating rather than noticing subtle signage. In some cases, these lanes might be marked with variable pricing signs that change based on traffic conditions, adding to the confusion. Without the clear visual cue of a toll booth, drivers might not realize they’ve incurred a charge until they receive a bill in the mail or see a deduction from their toll account.

Another factor contributing to this unawareness is the inconsistent signage across different states and regions. While some areas have prominent and frequent signs warning drivers of upcoming tolls, others may have less noticeable notifications, particularly in urban areas where signage competes with other traffic information. Additionally, when traveling on unfamiliar roads, drivers might miss toll signs altogether if they are distracted by navigating or dealing with traffic. This is particularly true for tourists or out-of-state drivers who may not be familiar with the local tolling practices and the presence of electronic toll systems.

Furthermore, the use of rental cars can complicate matters. Many rental vehicles are equipped with transponders, and toll charges incurred during the rental period are often passed on to the renter, sometimes with additional processing fees. If a renter isn’t aware that they passed through a toll or that the rental car company will handle the payment, they may be surprised to see extra charges on their credit card statement days or even weeks after their trip. This lack of immediate feedback at the time of the toll makes it easy for drivers to remain unaware that they’ve incurred a toll charge, leading to confusion and frustration when the charges are eventually billed.

Dealerships May not Find out for Months

When a dealership loans a vehicle to a customer, there is often a time lag between when the toll is incurred and when the dealership is billed for it. This delay can stem from the way toll collection systems process charges, particularly in regions that rely heavily on electronic tolling. When a customer drives a loaner vehicle through a toll point, the charge is typically recorded via the vehicle’s license plate or a transponder associated with the car. However, the billing process can take weeks or even months to complete, depending on the tolling agency’s billing cycle and processing times.

This delayed billing is especially common in states where toll agencies use a “pay by plate” system. In this system, the toll agency captures a photo of the vehicle’s license plate as it passes through the toll point and later sends a bill to the registered owner—in this case, the dealership. The time it takes for this bill to be generated and mailed out can vary. If the customer incurs multiple tolls over a short period, these charges may be grouped together and sent in a single invoice, further delaying the dealership’s awareness of the expenses. By the time the bill arrives, the loaned vehicle might have been returned, and the dealership could face challenges in determining which customer incurred the charges.

Moreover, if the customer drove through toll points in different states or regions, the dealership might receive separate bills from multiple toll agencies, each with its own processing timeline. For example, a customer borrowing a vehicle in Texas might incur tolls in both Texas and a neighboring state like Oklahoma if they travel interstate. Each state’s tolling authority would process and send the bill independently, potentially leading to a staggered receipt of charges that complicates tracking and reconciliation for the dealership. This fragmented billing can make it difficult for the dealership to immediately identify and attribute the charges to the correct customer.

The delay in billing not only affects the dealership’s ability to recoup the toll costs from the customer but also poses accounting challenges. Dealerships may need to track outstanding toll liabilities over an extended period, which can complicate financial reporting and cash flow management. If a significant amount of time passes before the toll charges are billed, the dealership may struggle to recover the costs from the customer, particularly if the customer is no longer in regular contact or disputes the charges. To mitigate these issues, dealerships often rely on detailed record-keeping and may implement policies requiring customers to sign agreements acknowledging responsibility for any toll charges incurred during the loan period.

In addition, the possibility of additional fees or penalties for late toll payments can further complicate the situation. If the toll agency does not receive payment in a timely manner, it may add fines or late fees to the original toll amount. These additional costs can increase the financial burden on the dealership, especially if they are unaware of the toll charges until months after the vehicle was loaned out. By the time the dealership receives the bill and contacts the customer, it may be difficult to resolve the situation amicably, potentially leading to customer dissatisfaction or loss.