Companies need to have a central view of mileage and business travel expenses by setting a mileage limit and emissions baseline whilst identifying any driver and vehicle issues, according to Matt Dyer, vice chairman of the British Vehicle Rental and Leasing Association (BVRLA).He was commenting in response to last week’s BVRLA report on Britain’s 14 million-strong ‘grey fleet’ amid claims that the associated costs were “invisible” to UK company bosses (see https://www.jaama.com/blog/the-hidden-cost-of-grey-fleet-need-not-be-invisible/).
Mr Dyer said: “There is an absolute need for business owners to realise the requirement to manage their ‘grey fleet’, both in terms of the true monetary cost to their organisation, through mileage claims and car allowances, but also the significant environmental impact it is having.
“‘Grey fleet’, in the form of cash allowances, seem on the surface to be a convenient, low-intervention solution. However, few organisations are exercising any significant degree of control over them. Privately owned vehicles can be poorly managed, are older, built to have outdated emissions standards and are without modern safety features, never mind whether there is a valid MoT, business insurance and service records.
“Companies need to have a central view of mileage and business travel expenses by setting a mileage limit and emissions baseline whilst identifying any driver and vehicle issues. But even without this in place there are more simple measures out there that can be enlisted such as car scheme salary sacrifice, pool cars and daily rental vehicles. These measures and innovative ways of thinking will help staff make better choices.”