GREY FLEETS – CASH FOR CARS
If choosing a company car is too hard, then – if you can – why not take the cash alternative instead?
Increasing numbers of employees are doing so, but many forget the convenience of a company car. After all, somebody else pays servicing and running costs, insurance and road tax, and for incidentals such as punctures.
Opt out of the company scheme, though, and your private car, used for company business, is known in the industry as part of the “grey fleet”. The advantage is that you can choose your own model, rather than pick from a list and maybe even have some money left over.
While this option makes more sense for those who have a car as a perk, as opposed to higher annual mileages, it’s not without problems. For the employee, there are the costs listed above, on top of the burden of having to take responsibility for your own transport.
Employees who opt out are often driving older cars (the average grey fleet car is eight years old), which usually means higher emissions and lower reliability – not great if you’re heading to a meeting to represent your company. Some industry experts worry this may become a health and safety issue in the future, too.