Grey Fleet - Select Fleet Solutions
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Grey Fleet

The term ‘Grey Fleet’ describes the use of personal vehicles for business purposes. That means Grey Fleet vehicles can fall into a number of different categories, including privately owned cars, personal lease vehicles and vehicles enjoyed through an affinity scheme.

Grey Fleet Explained

Want to know more about grey fleets? We'll talk you through the pros and cons, and help give you all the information you need to decide if a grey fleet is the fit for you.

Running a Grey Fleet

When an employee is using their own personal car for business travel, it’s up to an employer to make sure those journeys are being managed responsibly.

Grey Fleets have their advantages, including potentially lower costs and overheads for companies, but businesses still have responsibilities when employees are using their own car for travel. There are cost implications, legal ramifications and servicing and maintenance issues to negotiate. As a result, a Grey Fleet can often be a tricky and complex thing to manage.

That’s where Select Fleet Solutions comes in. We can help you meet all of your Grey Fleet responsibilities while continuing to drive your business forward.

Responsibilities when running a Grey Fleet

When employees travel for work purposes using a personal vehicle, businesses usually provide some sort of cash allowance, such as mileage or expenses. However, business’ responsibilities run much deeper than that.

Businesses also have a duty of care to ensure Grey Fleet vehicles are properly maintained and fit for purpose, which can be a particular issue if older vehicles are in use. Businesses should be aware of service schedules and MOT test statuses for all vehicles on their fleet. It’s also important to make sure mileage is tracked effectively, so safety is ensured and neither the employee nor the employer is left out of pocket.

Should the worst come to the worst, companies can be prosecuted if an employee dies while driving a Grey Fleet car on a business journey, so it’s important to manage the fleet correctly.

Advantages of a Grey Fleet

The advantages of a Grey Fleet are particularly attractive for businesses where employees do not regularly have to drive long distances on business.

If vehicles are only used on short work trips or are seldom used at all, it can be cheaper for a business to simply reimburse employees for work travel. Not only will the expenses be relatively low for each trip, but businesses will not have to pay for the cost or upkeep of company cars.

When business journeys are short or infrequent, it’s also less likely that accidents or vehicle damage will occur, further reducing companies’ costs and reducing the likelihood of a business being liable for any incident.

There is also some anecdotal evidence to suggest employees tend to take better care of their own vehicle compared with one supplied by the company.

Disadvantages of a Grey Fleet

In certain situations, Grey Fleets can be more expensive than other forms of fleet management. For example, businesses might find it cheaper and easier to simply rent vehicles for employees – especially when business travel is infrequent. Doing so will also reduce the need for management of vehicles in the Grey Fleet.

Grey Fleet management also requires clear and fair rules that ensure employees and employers know where they stand. Employees need to know what will be expected of them, while employers must make it clear that they understand their responsibilities and will reimburse employees fairly.

To ensure compliance and minimise risks, Grey Fleets should be managed like any other fleet, with businesses investing time and effort to ensure vehicles are safe and responsibilities are being met. Although companies will not necessarily be responsible for paying insurance premiums or for MOT tests, they need to know when policies are due for renewal and when MOT tests should be carried out, as well as considering other policies such as breakdown cover.

Select Grey Fleet Management

Select will ensure you are fully compliant in all areas relating to Grey Fleet Management.

We can help you ensure drivers are properly licensed and insured, as well as helping with driver training, risk assessments and policy advice, should any be needed. In short, Select Fleet Management can make sure employers are fulfilling their legal Duty of Care to ensure all employees and vehicles tasked with driving for business purposes are safe and legal to be on the road.

Our friendly and professional team is always here to help, and sound advice is just a phone call away. We can tailor a scheme to suit the needs of your business and staff, and it’s easier than you might think.

How can Select help you?

Select can help you fully manage your obligations to all drivers, including:

  • Driver licence checks
  • Insurance checks for cash takers and non-car eligible drivers
  • Online risk assessments
  • Driver training, where appropriate
  • Fleet policy advice and enhancement to ensure legal compliance

Want to know more about our fleet solutions? Get in touch now with our fleet solutions team on our dedicated phone number 0118 304 8690 or simply email them at corporatefleet@selectfleetsolutions.co.uk.

Grey Fleet Frequently Asked Questions

A Grey Fleet is a term used to describe a fleet of drivers who use their own personal cars for business purposes. That car might be privately leased, or owned, and might include cash allowance cars or those leased through an affinity scheme.

Operating a Grey Fleet can have real benefits for a business, particularly those whose employees are not tasked with driving huge distances each year. It’s potentially cheaper than using company cars, and anecdotal evidence suggests Grey Fleet drivers take better care of their personal vehicles.

Grey Fleet vehicles are company-managed vehicles - and as such, a business has a responsibility to ensure they are compliant with all the necessary legislation. If a grey fleet driver has an accident while on the road for business purposes, the business could be liable.

Select Fleet Solutions will work to ensure a business is fulfilling its many obligations to its Grey Fleet drivers. That includes accident management guidance, risk assessments, legal compliance, and help with the tracking of mileage.

That depends largely on the needs of a business. If the overheads involved with a business fleet seem overwhelming and the expenses involved with Grey Fleet vehicles will be lower, then it might be a useful way forward. However, it comes with risks and other solutions should be considered before taking the plunge.

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