What Is Grey Fleet?
In simple terms, Grey Fleet is the use of an employee’s own vehicle for business travel. This can include privately owned vehicles, those bought through an employee ownership scheme or those leased or rented by the employee. When such vehicles are driven for business purposes, they fall under a company’s Grey Fleet and are the responsibility of the employer.
Having a Grey Fleet can be especially beneficial to employers who operate a smaller fleet of vehicles, with lower business mileage. However, Grey Fleets can present a number of issues for employers when managing a fleet of vehicles.
Managing a Grey Fleet
Is often cheaper to reimburse employees for business mileage rather than providing and maintaining company vehicles, however, because Grey Fleet vehicles are not owned by the employer, it is harder to ensure that vehicles are properly maintained, meet legal insurance, road and safety requirements.
It is also important that employees are aware of their obligations if using their vehicle for business purposes. To run a successful Grey Fleet, employees and employers must work together to ensure vehicles are up to the job. As an employer obligations under the Health and Safety at Work Act 1974 are applicable to Grey Fleet vehicles, a big consideration to the safety and reliability of a vehicle is its age and for this reason, many businesses enforce age limits on vehicles that can be used as part of their Grey Fleet.
Owning a Grey Fleet vehicle
For employees who own a vehicle that they use for business purposes, there are some key things to consider. Although employees who are expected to use their vehicles for business travel will often have a car allowance and/or mileage expenses paid, it is important to remember that the vehicle is ultimately in the employees’ name and therefore their responsibility.
Employers are responsible for ensuring vehicles are in a good enough state of repair to meet the requirements of the business, but all other use falls under individual responsibility. If using a vehicle for business travel, employees must ensure the car is insured for business use, is properly maintained and has all necessary documentation.
How we can help
Whether you are an employee driving their own car for business or employer operating a Grey Fleet, you must be aware of your obligations and how they may affect you. At 360 Autoleasing we are always here to help our customers make the best choice for them. We can help advise on buying or leasing options and discuss what might be best for you or your business.
Get in touch on 0330 057 7360 or email us at email@example.com and we can help you make an informed choice on your motoring requirements.
Email : firstname.lastname@example.org
Telephone : 0330 057 7360
Company Address :
360 Autoleasing East Midlands
Office 11, 6 Frederick Street
360 Autoleasing East Midlands is a trading name of DMA Vehicle Solutions Ltd. We are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 798165
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