Benefits of Grey Fleet Drivers

29 May


Many businesses use them but what is a ‘grey fleet’ and what are the benefits of having one?

The term ‘grey fleet’ refers to drivers who drive their personal vehicles for business purposes. They work as employees of organizations, corporations or businesses but use a personal vehicle to complete any business mileage.

Companies often prefer grey fleet drivers over other drivers, especially if the company does not have high mileage in terms of business travel. They use these ‘grey fleet’ vehicles for business travel purposes and since the ‘grey fleet’ car is not a company car, there are several benefits for the company.


  • They are beneficial for companies that want to expand their fleet of cars at a lower cost.
  • They help companies pay lesser taxes or avoid excessive taxes.
  • They are beneficial for companies that do not have sufficient funds to operate a fleet of their own.
  • ‘Grey fleet’ drivers are helpful for companies that do not require a driver or car for business travel on a regular basis. They help such companies save money by being able to hire a ‘grey fleet’ driver only when the need arises.
  • Companies can save money from having to lease or buy a car when they employ ‘grey fleet’ drivers who have their own car.
  • Companies can save on additional expenses such as repairs, maintenance, and fuel when they hire a ‘grey fleet’ driver.
  • ‘Grey fleet’ drivers take care of their vehicle better because it is their own vehicle, compared to drivers employed by companies to take care of company vehicles. This is an advantage in terms of maintenance and service costs which come down when the vehicle is well looked after.
  • ‘Grey fleet’ drivers can also help the environment as they are more likely to buy cars that are fuel efficient and environmentally friendly since they get benefits from the company to do so in terms of lower taxes or benefits-in-kind taxation.

Although the car or the driver is not under the employment of the company, the laws state that it is still essential to make sure that the vehicles are checked and maintained to assure that they are compliant with the standards set by the government. It is also mandatory for companies to ensure that the ‘grey fleet’ cars have proper insurance.


‘Grey fleet’ drivers who are employees of the company and who use their own car to travel for business purposes will need to be adequately compensated in terms of mileage and any other additional travel claims.

Dependant on the type of vehicle or fuel used, the amount that will need to be reimbursed to the employee may vary, so costs and cash flow could be an issue. Also, money should be set aside or earmarked for business trips taken by the ‘grey fleet’ on a regular basis so there are no surprises at the end of the month.

So, as you can see here, ‘grey fleets’ are used by many companies for their cost saving and efficient management. So long as managed carefully, these ‘grey fleets’ can provide companies with an easy and simple way of running a fleet.

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