What is a Grey Fleet and how should it be managed?

What is a Grey Fleet?

Grey Fleet is a term that describes private vehicles that are used for business journeys. These journeys may be short and infrequent, or regular trips that cover thousands of corporate miles annually. In each case, although the vehicle belongs to the employee (through purchase or a funding option such as leasing) the employer remains responsible for the safety of the employee, and the public, when that vehicle is used for business.

It is estimated that there are 70 million Grey Fleet cars, costing employers around €91 billion a year in the biggest European markets*. Sometimes seen as an inferior fleet and as such often neglected by businesses, but through clear identification and proper management of Grey Fleet, cost savings can be made and advances towards a more sustainable fleet can be achieved.

Here we cover off what a Grey Fleet is, what the associated corporate responsibilities are and provide advice on how to manage a Grey Fleet.

What are my Grey Fleet responsibilities?

If an employee is driving for business, the employer has a legal obligation to check the employee is properly licensed to drive and that the vehicle being driven is roadworthy (taxed, MOT’d and insured for business cover).

A Grey Fleet driver policy is essential for businesses that have employees that drive their personal cars for work reasons.

How do I manage a Grey Fleet?

Identifying the scale of Grey Fleet

Firstly, it’s essential that you understand the scale of your Grey Fleet in today’s landscape. It’s likely that the circumstances of your employees have changed in recent years and driving patterns should be evaluated for you to understand the size and estimated cost of your grey fleet. DAVIS offers a Driver Audit service which surveys drivers to gain up to date information about your employee’s driving patterns to help quantify your Grey Fleet.

Carrying out Grey Fleet checks

Once you know exactly which drivers are Grey Fleet drivers, you will then need to carry out the appropriate checks. You may wish to use a driving risk software provider, such as DAVIS, to automate the licence checks and vehicle checks saving you hours of work and providing piece of mind that the checks are being continually processed in the background.

Not forgetting to check the insurance

Business use insurance is not normally included in a car insurance policy without a specific request. Whilst it is the responsibility of the driver to obtain the insurance policy, the employer should check not only the certificate of insurance, but also the policy to ensure that business miles are covered.

Consider the environmental impact of a Grey Fleet

Research suggests that the Grey Fleet is an ageing fleet, with the average age of a grey fleet vehicle estimated at 8.2 years old, compared with 1.6 years for a lease car and 0.7 years for a rental. Generally speaking, the older the vehicle, the less carbon efficient it is and as a result the Grey Fleet can be a high polluting form of travel which can be detrimental to businesses wishing to improve their carbon footprint.

The good news is that using a service such as DAVIS enables you to reject certain models from being accepted as Grey Fleet vehicles. This gives your business the opportunity to update your grey fleet policy to become more environmentally aware by restricting certain vehicles based on their CO2 emissions or the vehicle’s age as an example.

Adopt and communicate the policy

It’s no good making changes unless they are communicated. With DAVIS you have the option to share policy documentation and capture a driver declaration, evidencing that the driver has read and agrees to the changes.

To find about more about our Grey Fleet module, please click here. If you are interested in having DAVIS manage your Grey Fleet for you, please get in touch with us to arrange a demo or request a free, no-obligation quote.

*Source: Bynx. European markets are France, Germany, Italy, Spain, UK