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.

Benefits

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.

Negatives

‘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.