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Licence Bureau warns of increasing grey fleet problem

Date: 28 January 2019   |   Author: Sean Keywood

The challenge posed to UK companies by grey fleet is reaching epidemic proportions and is unlikely to improve any time soon, according to licence checking firm Licence Bureau.

It says continued growth in personal leasing and an increase in tax costs for some company cars following the partial introduction of WLTP are further adding to the issue, which many organisations are struggling to come to terms with.

Licence Bureau says it is concerned about companies' inability to adhere to their duty of care obligations when employees use their own cars on company business.

It warns that the increase in personal leasing has caused challenges around vehicle maintenance, with industry experts predicting fewer vehicles being maintained in accordance with official manufacturer service schedules, as drivers take a more relaxed approach to these and even MOT renewals.

The firm warns that the growth in grey fleet affects management and risk profile, with insurance cover, vehicle condition, suitability for journey and fuel efficiency all outside of an organisation's control. 

Licence Bureau sales director Steve Pinchen said: "The first questions we ask fleets is how many company cars and grey fleet drivers they have. The majority cannot answer the latter part of the question, so we know many companies' duty of care is out of control. 

"Generally, it's not because the companies are complacent, but because the grey fleet part of their business is changing at such a pace, many don't know where to start to control it on a daily basis to keep compliance at 100%. 

"We already know that of the estimated 14 million vehicles in business use across the UK, only around one million are company cars and this is forecast to reduce by a further 11% over the coming 12 months. 

"What this means is there are a huge amount of grey fleet vehicles in circulation and organisations need to be aware of how this impacts their employee duty of care."