Some astonishing research has arrived from one of our funding partners, Arval UK.
Each year it undertakes its Mobility Observatory Barometer, a weather check if you like on the state of fleets and their attitudes to fleet management.
In its latest edition, the leasing and mobility provider asked a new question regarding grey fleet policy. It found that six out of 10 companies had no formal policy in place regarding grey fleet.
Grey fleet, if you have not come across the term before, is the use of employee-owned cars on business.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said:
“This is a new question that we have added to our annual research in 2023 and probably the single most worrying finding, given the widespread prevalence of at least occasional and often regular use of privately-owned cars for business journeys.
“It shows that a huge proportion of companies don’t have any formal structure in place for handling this crucial safety issue which, if it is not taken seriously, not only increases the chances of accidents, but could even see directors of companies being liable in the event of a serious incident.
“Any vehicles driven for business bring the same level of responsibility for the employer, whether a company car or a privately-owned vehicle used by a member of staff for a work-related journey. That means a grey fleet vehicle needs to have the same level of risk management attention – covering everything from the driver to the suitability of the car to how it is maintained – as a company car provided by the business.
“To see so few fleets having a grey fleet policy in place is a major concern and suggests that much work needs to be done to raise awareness among businesses when it comes to their legal obligations.”
Salary sacrifice – find out more
Electric car salary sacrifice is an ideal method of providing all your employees that drive private cars on business with an electric vehicle at a significantly lower cost than if they were leasing the same car on the same terms privately. It is highly effective in managing grey fleet drivers and employer duty of care. Employees sacrifice part of their gross salary for a fully maintained electric car.
What’s more, there was little difference in the size of business in the attitude to grey fleet policy provision. Among the smallest companies with fewer than 10 employees, 34% said they had a policy, while among the largest with more than 1,000 employees, the figure was 39%.
Salary sacrifice is an option to grey fleet
One way for businesses of all sizes to approach improved management of employee-owned cars on business use is to provide salary sacrifice schemes, reckons Managing Director of CBVC Vehicle Management, Mike Manners. He said:
“It provides access to electric cars at a much reduced price than if they were to lease them privately, assists companies in their ESG agendas,
and provides a valued benefit. Perhaps an unrecognised benefit is that it also de-risks a company from running grey fleet.”
With an electric car salary sacrifice scheme, an employee sacrifices gross salary for a company provided vehicle that is fully insured and fully maintained. All the driver needs to do is fill the car with electricity. Thanks to a variety of tax breaks, it works out cheaper than if the driver were to lease the same car privately on a fully insured and maintained basis.
“While using employee-owned cars for your business purposes might seem an easy route for your mobility requirements, it is fraught with duty of care issues,” Mike continued. “There are also corporate manslaughter implications too if the vehicles are found to be unroadworthy and are involved in a fatal accident. At a stroke, salary sacrifice does away with those issues and provides your business with professional management of your employees and their cars.”
Would your business like assistance with its grey fleet?
We can help your company manage your grey fleet through the provision of electric car salary sacrifice. If you would like to understand more about how to do this, contact us now.
Call us on 01283 351200 and talk to one of our fleet experts.
