This report identifies the current state of the practice regarding fleet replacement management and financing methods by departments of transportation (DOTs). A primary objective of this study is to identify methods currently used to manage asset replacement, including the financing of replacement expenditures. The report also provides a discussion of the perceived strengths and weaknesses of different management and financing methods. Information used in this study was acquired through a review of the literature and a survey of DOT representatives in all states. Paul T. Lauria, Mercury Associates, Inc. and Donald T. Lauria, University of North Carolina at Chapel Hill, collected and synthesized the information and wrote the report. The members of the topic panel are acknowledged on the preceding page. This synthesis is an immediately useful document that records the practices that were acceptable with the limitations of the knowledge available at the time of its preparation. As progress in research and practice continues, new knowledge will be added to that now at hand."--Preface.