A decline in the number of company cars on the nation’s roads is leading to considerable growth amongst grey fleets…
Grey Fleet Growth
The decline of the company car is leading to considerable grey fleet growth, according to Fleet Check. Indeed, new data from the HMRC has revealed that the number of company cars on the road network has declined by 80,000 in just a year. That means there are now just 720,000 company cars in total. This is down from 960,000 in 2015/16.
Tellingly, this decline took place despite the zero percentage Benefit in Kind tax rate being introduced for electric vehicles. That said, the rate does seem to have encouraged the take up of EVs. For instance, all-electric cars made up 7% of car benefit recipients. Indeed, leasing companies have experienced a record number of enquiries concerning EVs – so the number is likely to continue to rise.
‘A Complex Picture’
Peter Golding, FleetCheck managing director, commented on the situation. He explained, “there’s a relatively complex picture emerging here. Over the next few years, we expect overall company car numbers to grow as low taxation electric vehicles (EVs) come to form the majority of fleets. However, it also makes sense that in recent times, drivers who have been spending little time on the road because of lockdowns would want to opt out of the fleet and take a cash allowance, even if only temporarily”.
He continued, “what this means is that we are going through a phase where a relatively large number of people have moved out of fleet schemes – 80,000 according to the HMRC numbers – and are using their own vehicle for work purposes. This means a substantial growth in grey fleets and potentially also an increase in the proportion of drivers who are using their own cars quite intensively for business, rather than on a more occasional basis”.
Golding concluded that the growth of grey fleets will produce more work for businesses, especially as many are unprepared for managing non-company vehicles.
Noise Cameras To Be Trialled In The UK – https://autoservefleet.co.uk/latest-news/noise-cameras-to-be-trialled-in-the-uk/
Three Hydrogen Fuel Stations Close Down In The UK – https://autoserve.co.uk/motoring-news/three-hydrogen-fuel-stations-close-down-in-the-uk/