Businesses are increasingly onboarding short-term lease cars to address grey fleet issues as part of a pool car arrangement.

Businesses are addressing their grey fleet issues by onboarding short-term lease cars as part of a pool car arrangement

Vehicle procurement company Liquid Fleet has reported increased demand from its clients for such a set-up, which it said delivers a number of benefits.

Providing staff with a nearly new car for work travel not only circumvents the risk management issues inherent to the grey fleet, but it also means businesses can manage their car numbers up or down depending on the volume of grey fleet journeys.

It also helps avoid the time, cost and hassle of grey fleet management. In a recent analysis of two separate corporate clients, Liquid Fleet looked at the actual cost of the grey fleet miles and the additional management time spent on ensuring vehicles that are on average 8.2 years old are insured for business use and are in a roadworthy condition.

The analysis of the number of trips and miles being travelled by grey fleet users quickly established that companies using short-term lease cars reduced costs and cut their carbon footprint. Such cars can also ensure the company is represented in a much better light when used on business trips.

Ismael Aumeerally, Liquid Fleet’s MD

Liquid Fleet typically supplies hybrid five-door hatchbacks to its customers, also helping to reduce grey fleet emissions.

On average, companies rent cars for up to 12 months to trial the grey fleet pool car approach, some of which are now on their second 12-month cycle due to the success of their initial trial.

Ismael Aumeerally, Liquid Fleet’s MD, said: “A short-term lease car makes sense as it provides a new or nearly new car in A1 condition that is adequately insured for business use. It gives peace of mind to managers that their employees who travel sporadically on company business are driving a well-maintained car which is something more difficult to manage when they use their own private car.

“An extra bonus for customers has been our ability to get them into hybrid cars which also supports their sustainability commitments. A growing number of companies are also now requesting full EVs, particularly from when they have electric charging points installed on site.”