Grey Fleet Leasing: Your Requirements as a Business Owner

 As a commercial leader, there are times where you may need to allow employees to use their private cars for business travel. If your company does not have a fleet of vehicles, then empowering staff to use their own transportation means that meetings and events can be attended without causing disruption to the productivity of the business.  It is estimated that grey fleet vehicles make up approximately 57% of total public sector road mileage, while also accounting for an increasing percentage throughout the private business world.

Understanding your Duty of Car as a Business Owner

While the use of personal cars for commercial purposes may make sense, however, it is important to understand your duty of car as a business owner. Consider the following: –

• Road Safety and Vehicle Performance: While a grey fleet consists of individually owned vehicles, as a business owner you are responsible for their performance when they are used to fulfill a commercial purpose. Therefore, you will need to ensure that each car is fit for purpose before it takes to the road, paying particular attention to its MOT validity, levels of insurance and the eligibility of your employees driving license.
• Your Social and Environmental Responsibility: The concept of socially responsible brands has come into its own during the last few years, as consumers have changed their philosophy and begun to consider the moral and ethical credentials of businesses. It is therefore worth remembering that grey fleet vehicles are likely to be older than standard company cars, which means that they will generate higher CO2 emissions over time. This may be an issue, especially if its goes against your businesses underlying social values.
•  The Cost of Operating Grey Fleet Vehicles: As a business owner, one of your primary concerns is the overall cost of all operational processes. In terms of grey fleet vehicles, you will be required to refund the cost of fuel in relation to all business excursions. This may ultimately cost a considerable sum, and for journeys of 80 miles or more it is generally considered cheaper to provide a daily rental vehicle to fulfill company requirements. This is only a general rule, however, so seek out professional guidance from industry experts such as Hitachi Grey Fleet Leasing.

The Bottom Line

While it may occasionally be convenient to let staff use their own vehicles for business purposes, remember that as a commercial leader you will retain a duty of car while they are on the road. With this in mind, you will need to consider the practice carefully to determine whether it is a viable, safe or cost effective solution for your business.