We recently read an article written by Andy Bland on five questions to help identify if your business has a hidden grey fleet problem, following on from this we decided to take a look at possible solutions for companies and how we already help businesses in the UK with short-term solutions.
What is a grey fleet?
In a nutshell, grey fleet is where an employee uses their own personal car to carry out duties or trips for your business. In return they may receive mileage costs via the payroll.
The downsides is that as the business, you are responsible for the car they drive on behalf of the company. You can read more about this on our Grey Fleet page.
Things to look at...
With regards to grey fleet, the article asks various questions. This includes how large your actual grey fleet is, how much you have paid out in mileage reimbursements, are the vehiles being used on the grey fleet serviced and properley maintained, are they insured for business use.
Whilst the article does cover other subjects with regards to journey efficiency and do you have a grey fleet policy.
Alternatives to Grey Fleets...
Businesses have moved away from company cars due to tax and cost implications, usually these are taken on a 2/3 year lease or even purchased, if the employee leacves they are still left with a car or an ealry termination fee to send the car back early.
Some firms offer cash car allowances instead, these still fall under grey fleet if the employee users their vehicle for your businesses purposes.
The positive is that we deal with different businesses each week all with different criteria. Some are companies who need multiple vehicles for their sales staff to work on seasonal campaigns, some just need a car to sit in the yard as a pool car. Sometimes the CEO wants a car for the summer.
Whatever you need, we should have a short-term solution that could help.
Business Car Subscriptions
Think of business car subscriptions as more of a long-term car rental but more cost effective. Vehicles can be taken out for 1-month plus (best prices for those who take the vehicle for the minimum qualifying period) and returned when they are no longer required.
The positives to these vehicle subscriptions is that you are tied into a longer period of time, the cars are readily available and the initial costs are lower. In fact if you compare some of the cars against loger term leases, there isn’t much in the price.
Most subscriptions come with maintenance as standard, as well as manufacturers breakdown assistance, warranty and road tax. All you need to do is make sure the car is on your fleet insurance policy and off you go.
Short-Term Car Leasing for Business
Short-Term Car Leasing is effectively like traditional contract hire products. But instead of taking a vehicle over 2 or 3 years, contracts vary in length from 6 to 12 months with a few in-between. The make/model of the car dictates the contract length, but the pricing is extremely competitive and mileage allowances can be up to 2,000 miles per month on most of the contracts we have available.
Maintenance is optional on our short-term leases, but depending on the length of time and the mileage requirements, it might not be neccessary. Breakdown assistance, road tax and manufacturers warranty is also included for peace of mind.
Lead times are slightly longer on these fixed contracts, ranging from 1-3 weeks when in dealer stock. Specification or colours cannot be chosen due to the nature of the product.
More Information
If you would like any further information on how our car subscriptions or short-term car leases could help you and any grey fleet problems, please speak to the team on 01332 290173 or use the ENQUIRY FORM at the bottom of this article.
