Rural public transportation providers face several challenges when determining the proper mix of vehicle types and sizes for their operations. They need to consider the demand for service, passenger characteristics, the types of trips they are providing, service area size and characteristics, trip pattern type, availability of drivers, vehicle cost, and other factors. Cost is important because funding for replacement vehicles is limited, and finding local matching funds can be a challenge. Therefore, it may be logical for agencies to select smaller, less expensive vehicles, given funding constraints. However, these vehicles need to have the capacity to meet the needs of the agency and its users, and both capital and operating costs must be considered. Ideally, an agency would operate a mix of vehicles that minimizes total costs, including both capital and operating costs, while meeting the needs of the agency and its users and providing an acceptable quality of service.