Research warns of ‘grey fleet’ dangers

INCREASING use of ‘cash for cars’ schemes are potentially creating a duty of care nightmare for businesses, according to a new study from Europcar.

Changes in Benefit in Kind tax rules means many employers now give staff money to run their own vehicles for work, yet these so-called 'grey fleets' present a legal headache unless they are properly maintained, taxed and insured. Europcar research suggests one-third of businesses now utilise grey fleets, yet many do not have systems to monitor if the vehicles are safe.

The average grey fleet vehicle is older and more polluting than a company car, and is also more prone to breakdowns.

“The high usage of grey fleet vehicles underlines the importance of monitoring employee travel,” says Gary Smith, Managing Director, Europcar Mobility Group UK.

“Worryingly, nearly one in five said they don’t monitor employee travel at all. Only 45% of businesses monitor fuel expenses.”