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A new survey conducted by leasing and fleet management company ‘Alphabet’, revealed the size and extent of the so called ‘Grey Fleet’. This refers to private vehicles used for business, as opposed to company cars or hire cars. The grey fleet is generally considered less eco friendly as a substantial amount of privately owned cars are older than 7 years, making them less energy efficient. Privately owned vehicles are often not maintained to very high standards, and employers find it more difficult to keep track of things like, service history, MOT and insurance. These factors have led to grey fleet travel being viewed as risky, but despite this, 2012 saw a 32% rise in grey fleet mileage.
The cost of grey fleets has reportedly risen year on year as companies increasingly reimbursed mileage at the 45p per mile AMAP rate. Businesses have difficulty estimating and calculating unpredictable and vague grey fleet costs, which is why there are grey fleet management tools around to help with this. Feedback suggests that a large amount of additional costs go unseen. Based on the total yearly mileages reported by respondents to the survey, employees of the 250 organisations questioned could be clocking up nearly 450 million business miles a year in their own private vehicles. With 60% of companies paying their drivers the 45p or more rate, it follows that this sample of 250 operators alone could be open to ‘unmanaged’ grey fleet miles per year numbering over 130 million, at a cost of at least ┬ú60 million.
Some local authorities have been studying possible savings by replacing their company car schemes with a cash allowance. This would look good politically and financially in the short term, but experts believe all things considered, it would have negative long term effects.
A positive vehicle hire experience is offered by Allied Self Drive Vehicle Hire, Chelmsford, where high quality cars, vans, minibuses and trucks are available at competitive prices. With all the latest technology, these vehicles are energy efficient and reliable, helping the environment and assisting in keeping customers blood pressure down!. They can be used at home or abroad for holidays, relocation or general convenience. Call Allied Chelmsford on 01245 496 155
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