A Grey Fleet vehicle is one that is used for business travel but is owned by the employee instead of the company. Grey Fleet can pose a risk for businesses when the company and/or employee does not understand the level of responsibility that they have. Health risks may also be a concern with Grey Fleets as personally-owned vehicles typically have a much lower NCAP rating, as well as a higher average fleet age and greater CO2 emissions. Find out more about potential risks here.
Enterprise Rent-A-Car and National Car Rental can work with you to develop effective Grey Fleet strategies. We have a range of options available which can be tailored to your specific objectives to provide the most cost-effective and efficient business rental solutions for you.
What are employer's responsibilities?
The difference between Grey Fleet and company cars is the way the vehicle is funded, however the employer's duty of care remains the same. As an employer you need to consider several factors, including:
- Policy - A clear policy is needed on the type of vehicles approved for business travel. This should include the maximum age of vehicle permitted. It is vital that vehicles approved are fit for purpose and you do not authorise a vehicle whose age, type, or condition could impact its road worthiness.
- Driver licence inspections – These are a legal requirement under the Road Traffic Act, and it is a criminal offence for anyone to drive without a legal licence. Not only would the Grey Fleet driver be uninsured, but the company could be heavily fined for not having the appropriate processes in place.
- Insurance - Vehicles must carry the correct business insurance for the journeys they are completing. This is particularly important post-Covid. If your employees only have commuting on their policy, but now work from home, a trip to the office becomes a business journey for which they are no longer insured.
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What are alternatives to Grey Fleet usage?
A good solution to Grey Fleet management can be the use of rental vehicles and car clubs.
Daily rental and car club vehicles are typically newer, cleaner and safer than private vehicles; this means they are more efficient, have reduced emissions, and comply with health and safety regulations. In addition, the rental company has responsibility for taxation, NCTs and maintenance of the vehicles, rather than that being an added administrative task for your company.
Objectives you should consider when reviewing alternative solutions:
- CO2 emissions & Grey Fleet mileage reduction
- Reduced cost of travel
- Compliance with duty of care policies & Irish Revenue
- Improvement of service delivery
- Reduction in congestion
- Encouraging use of public/shared transport & active travel
- Improving employee efficiency & benefits
What are the benefits to using alternative solutions?
The main benefits of effectively managing your Grey Fleet policy through the use of rental vehicles and car clubs are:
- Cost control
- Rental vehicles are typically newer, cleaner and safer
- Reduction in vehicle emissions
- Health and safety of staff
- Increased vehicle choice
- Reduced risk to the employer
- Reduced parking costs
- Improved environmental credentials
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The complete guide to grey fleet alternatives
To find out what the best mobility option is for you besides operating a Grey Fleet, download The Complete Guide to Grey Fleet Alternatives.
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If you want to find out more about grey fleets and discuss any of your business mobility requirements, contact us today.