Understanding Road User Charges (RUCs) and Handy Rentals’ KM Packages
Overview: What Are RUCs? If you’re driving a diesel vehicle in New Zealand, you’ve probably heard of Road User Charges (RUCs). These are government-mandated fees applied to diesel and heavy vehicles because they don’t contribute to road upkeep through fuel taxes (like petrol vehicles do). Instead, they pay based on how far they drive.
RUCs are collected by the NZ Transport Agency (NZTA) and go directly into the National Land Transport Fund, which helps pay for:
- Maintaining and upgrading roads
- Constructing new infrastructure
- Improving safety features on highways
- Funding public transport projects
- Cycling and pedestrian path developments
- Supporting regional and rural transportation needs
In short, RUCs help ensure everyone using the roads is contributing to their upkeep, regardless of what type of fuel their vehicle uses. This funding supports a safe, reliable, and efficient transport system across the country.
How RUCs Are Measured RUCs are tracked through a couple of methods:
- HUBODOMETER (HUBBO): A device fitted to the vehicle that tracks distance travelled. It’s tamper-proof and provides an accurate reading of how far a vehicle has gone.
- NZTA Records: These are linked to your vehicle’s registration and RUC license. They ensure that vehicle usage and RUC payments are properly recorded and tracked.
- RUC Label: Displayed on the windscreen, it shows the distance covered and how much you’ve paid for. It must always be visible and up to date to avoid fines.
So, when you’re on the road, every kilometre counts!
Are RUCs Included in Your Hire? Yes! At Handy Rentals, our per kilometre charge includes your RUCs. But it doesn’t stop there—this fee also covers:
- Tyre wear and tear
- Vehicle servicing and maintenance
- General vehicle depreciation
- Windscreen and minor damage cover (within reason)
- Cleaning and vehicle prep costs
So while it may seem like you’re just paying for distance, you’re also contributing to keeping our vehicles in top condition and ready for the next trip. It’s a cost that reflects all the behind-the-scenes work that keeps Handy Rentals running smoothly.
Why KM Charges Are Higher Than Just RUCs
We often get asked, “Why is the per kilometre charge higher than the actual RUC fee?” Great question. While the RUC itself is a set rate by the government, our KM charge includes much more than just that. Every kilometre you drive puts wear on tyres, adds hours to engine use, and brings us closer to our next service interval. The KM charge helps cover these real costs so you’re always in a clean, well-maintained, roadworthy vehicle.
This also includes the cost of maintaining our support systems—like customer service, roadside assistance, and vehicle availability tracking. We aim to deliver not just a vehicle, but a complete, reliable rental experience.
Handy Rentals KM Packages: Saving You Money To help you budget better, we offer a couple of distance-based packages:
- 100 KMs/Day: A good fit for short trips, errands, or local jobs around town. It keeps things flexible and affordable if you don’t plan on going far.
- 500 KMs/Day: Ideal for longer journeys, road trips, delivery runs, or multi-stop moves. This package gives you the freedom to travel more without worrying about running up a huge bill.
Both options are designed to be fair and easy to understand, so you can pick the right plan for your trip and avoid surprises when it’s time to return the vehicle.
The key takeaway? Every kilometre is more than just distance—it’s value. And we’ve designed our KM charges and packages to keep things fair, clear, and simple.