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Managing grey fleet – what you need to know

When it comes to fleet vehicles, it’s estimated that there are more than three times more ‘grey fleet’ vehicles than company cars in the UK*.

But what exactly is ‘grey fleet’ and what should you be considering if you operate it within your small business? You might even be operating grey fleet without knowing it.

What exactly is grey fleet?

Put simply, grey fleet is any car or vehicle used for business travel that does not belong to your company. A grey fleet vehicle could include one that is purchased through an employee ownership scheme, or a vehicle that is privately financed or owned by one of your employees.

If these vehicles are then driven on company business (normally in return for fuel expense or a cash allowance), they’re then known as ‘grey fleet’ and come under your responsibility as an employer.

How can you manage grey fleet?

Grey fleet vehicles can bring benefits as a flexible and cost effective solution for employee transport. However, you need to remember that you don’t own and control the vehicles – and this can make manging them complex.

You should be aware that health and safety legislation applies to employees making work-related journeys, so it makes a lot of sense to treat grey fleet as you would with regular company cars.

How do I know if my grey fleet is safe?

Fleet managers within larger companies need to show that any grey fleet vehicles have followed relevant safety policies and that they have been included in any risk assessments. A detailed record of vehicle details also needs to be kept including information on servicing and MOT, insurance and tax and driving licence checks.

This can sometimes be difficult to achieve if you are running a small business without the dedicated resource and knowledge, so considering alternatives such as short term leasing to reduce the need for grey fleet could be well worth it.

What are the alternatives?

As we’ve mentioned above, smaller companies often don’t have the time or skills required to keep on top of a grey fleet and ensure everything remains compliant.

Alternative solutions such as our short term leasing model allow you to access vehicles for your business as and when you need to give them to your employees, and you can sleep easy in the knowledge that all your vehicles are up to date when it comes to the relevant safety and maintenance certification.

So, if we’ve got you thinking about the potential problems of grey fleet within your business, contact us today and find out how what we do could work for you.

*according to the Energy Savings Trust

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