Grey fleet has been growing, but the low BIK on BEVs may reverse that
More people are wanting to travel on their own in their own vehicle due to Covid-19, leading to an increase in private car usage for business journeys, says Jaama.
Company car drivers wanting to switch to a cash allowance is a temporary response to the Covid-19 situation and not a long-term trend.
By Andy Jackson, head of finance at Imosphere
The latest data from the Department for Transport (DfT) shows car use was at 85% of what would typically be expected on Monday (July 20).
Electrifying fleets remains a priority among fleet decision-makers as the new benefit-in-kind (BIK) tax rates and an increasing focus on environmental issues continues to influence company policies.
Long-term changes to the way people work could result in more employees becoming grey fleet drivers.
The Highland Council has reduced annual business mileage by more than 825,000 miles, since introducing Enterprise Car Club to reduce grey fleet use.
Fleet decision-makers speak of the increasing challenges placed on them by increased focus on the management of the fleet, BIK pressure - and driver rebellion
Companies are generally comfortable with grey fleet as long as they have all the checks in place within a policy that mirrors/is the same as the company car policy.
Increase in grey fleet exposing drivers and employers to greater risk
A third of grey fleet drivers say their cars are not insured for business
One in six at-work drivers says they have been involved in an accident when taking a call from a colleague, new research suggests.
Company cars are still the preferred method of travel by the majority of companies that operate fleets, according to Arval.
Fleets have seen an increasing number of drivers opting out of company car schemes to instead take cash allowances.
Businesses must act now to ensure they include the energy used by all fleet vehicles within overall compliance calculations, says Cenex.
The Urban Mobility Partnership is urging all 44 public bodies in Wales to ban the use of private cars for business purposes.
By Richard Evans, head of business development at Jaama on Grey Fleet Management
Licence Check is backing a call by fleet body ACFO for enhanced grey fleet management services due to a rising number of grey fleet drivers.
The rising trend of employees opting for cash in lieu of a company car, due to a perceived rising tax burden, makes grey fleet management ever-more critical, according to ACFO.
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