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Grey Fleet

Understanding Grey Fleet

In the scope of fleet management, the term "grey fleet" refers to a unique category of vehicles owned by employees but used for business purposes. Unlike company-owned or leased vehicles, grey fleet vehicles are personally owned or leased by individual employees, who then use them for work-related activities. While this arrangement provides a degree of flexibility, it also presents certain challenges for businesses to navigate.

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Characteristics of Grey Fleet:


Employee-Owned Vehicles

Grey fleet vehicles are owned or leased by employees themselves, and they are often used for both personal and business-related travel.


Reimbursement Model

Instead of providing company vehicles, businesses typically reimburse employees for the expenses associated with using their personal vehicles for work purposes.


Diverse Vehicle Types

Grey fleet vehicles can vary widely in make, model, age, and condition, reflecting the diverse preferences and circumstances of individual employees and the business requirements.

Challenges and Considerations:

Risk Management

Businesses must address issues related to liability, insurance, and duty of care when employees use their own vehicles for work. This includes ensuring that grey fleet vehicles meet safety standards and are adequately insured.

Cost Management

While grey fleet arrangements may seem cost-effective on the surface, managing reimbursements, fuel expenses, and maintenance costs can become complex. Businesses need transparent systems to track and reimburse expenses accurately.

Environmental Impact

The environmental impact of grey fleet vehicles can be challenging to manage. Unlike a standardized company fleet with eco-friendly options, grey fleet vehicles may vary in terms of fuel efficiency and emissions.

Compliance and Regulation

Businesses must navigate the legal and regulatory landscape associated with grey fleet vehicles, including taxation, reporting, and compliance with health and safety regulations.

We at SMC can effectively manage your grey fleet by crucially establishing clear and comprehensive policies, this includes setting out guidelines for vehicle condition, safety checks, insurance requirements. We will have transparent communication with your employees about grey fleet polices and the importance of maintaining their vehicles for business use, meaning you can concentrate on more important matters, your business.

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What Our Customers Say

28 March 2023
The Cowdray Estate have been using Southern Motor Contracts for a number of years. They provide us with an exceptional service, in regard to our Vehicle Leasing and Hire needs. We are very impressed with the professionalism and efficiency demonstrated by your whole team. The range of vehicles we are offered by SMC is extensive, which caters for all our personal preferences and needs, from a basic service vehicle to a top of the specification Range Rover. Together with the exemplary customer service which reflects SMC’s commitment to quality and aftercare maintenance, an aspect that truly sets SMC apart from its competitors. We can confidently recommend Southern Motor Contracts services as a hassle free, cost effective and reliable company in vehicle leasing solutions.

Peppi Cella, Estate Manager, Cowdray Estate

12 July 2023
We have relied upon Southern Motor Contracts to provide flexible, cost-effective solutions to our Car and Van needs since 2006. Their customer centered approach makes them a trusted and valued supplier of over 100 vehicles to the Day Group.

Chris Cooling, Group Transport Manager, Day Group Limited

21 September 2023
We have been working with SMC for the last 5 years and has been a pleasure, the team are friendly and experienced. Tracy has been incredible turning our fleet around, we went from an aging fleet to brand new fleet where all the maintenance is taken care of. Their ‘one stop shop’ approach has taken the hassle out of fleet management for us. Highly recommended!

Joanna Karikos, Head of QHSE, Aurora

21 September 2023
Our company is very impressed with the service that we receive from SMC. The team are very friendly, helpful and efficient. We would therefore recommend SMC to anyone looking for help to run their fleet vehicle administration.

Lesley Alexander, PA to Chairman, Carmel Group Limited

29 February 2024
SMC provide us with an excellent and comprehensive fleet management service. They ensure that our fleet of over 100 vehicles are managed and well maintained to meet the ever changing and demanding needs of our business. SMC are innovative, reliable and above all trustworthy. I have no hesitation in recommending their services to others.

Richard Cooper, Group Executive Manager, Comserv UK Ltd

27 March 2024
We have used Southern Motor Contracts Ltd for a number of years for sourcing and supplying our Company vehicles. SMC have always provided us with an excellent service by listening to our needs and we love that they find what we want. Everyone we deal with at SMC is always very professional and their response is second to none. We would highly recommend that you give them a try.

Heather Lunt, Finance Controller / HR & Payroll M Spur Electron

28 March 2024
As one of the world's largest producers of quality wood flooring, with a proud heritage dating back to 1847, it is vital that the partners we work with are able to match our high standards for quality and professionalism. Working with Southern Motor Contracts has been a revelation; their ability to understand our requirements, manage our vehicles and build in the flexibility to change and grow our company fleet has enabled us to concentrate our efforts on developing the business rather than spending time and effort on non-productive activities. With their attention to detail, pleasant attitude and customer focus, I would have no hesitation at all in recommending SMC to other companies and individuals

Harvey Booth, Country Manager, UK & IE Kährs (UK) Ltd

Registered address: Southern Motor Contracts Limited, Unit B2, Endeavour Business Park, Penner Road, Havant, Hampshire PO9 1QN, United Kingdom.

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