Fleet News

Getting a handle on grey fleet key for SMEs

Cars parked in a car park

Grey fleet is vital to SMEs, but needs to be correctly managed, according to the BVRLA's director of policy Jay Parmar.

Speaking at Fleet Management Live's Insight Theatre, Parmar outlined the organisation's grey fleet report, and emphasised the ways SME businesses can help to reduce the costs and risk associated with drivers using private cars for business.

The average grey fleet vehicle is more than eight years old, with average CO2 emissions of 152g/km - not as clean or green as the average fleet car, so Parmar called on SMEs to measure mileage, cut excess travel, and look to make the most of existing company vehicles.

Other speakers included Simon Down, tax director at Deloitte, who explained that, in real terms, company car tax has stayed broadly static, thanks to reducing CO2 emissions of vehicles. He warned that the current company car tax consultation was likely to increase costs for both businesses and drivers.

Parmar also covered the consultation, saying the BVRLA and the fleet industry was calling for a clear five year tax band cycle, to allow for four year vehicle replacement cycles, and ensure drivers were aware of their tax liability for the entirety of the vehicle term.

LeasePlan Go's Dan Abbott, said that for SME's, fleet was the 'hot potato' that can be passed around as often as a business likes, but warned that fleet decisions have to be made and 'do not go away'.

Lesley Upham, commercial director at IAM RoadSmart, explained the importance of  targeted actions when it comes to driver training – not necessarily a blanket approach. She said that a businesses staff needed to be 'prepared for learning', and that senior managers should lead by example.

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