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Managing private cars on business – don’t get stumped!

BUSINESSES wanting to tackle the use of private cars on business could learn from the cricketing world, says Mike Waters, director of market insight at fuel and fleet management company Arval. And hit management issues for six.
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Think cricket to manage private cars on business

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6 August 2010

Business woman in private car used for business purposes
Think cricket to manage private cars on business

BUSINESSES wanting to tackle the use of private cars on business could learn from the cricketing world, says Mike Waters, director of market insight at fuel and fleet management company Arval. And hit management issues for six.

 

HOW do you manage drivers using their private cars on business? As an employer, you have legal occupational road risk management responsibilities for those drivers.

However, the up-front costs of providing a company car, using contract hire or short-term lease rental might be off-putting.

But rather than ignore it, or try and tackle the issue with a one solution fits all, break down your areas of operation into smaller units. I’ve used a cricketing analogy to help explain this approach more fully.

For example, there are many varied formats of cricket – five day Test matches, shorter one day games or speedy 20:20 shoot-outs – and all require different planning, tactics and often players. This thinking can be applied to managing those drivers of yours who drive their own private cars on business.

Test Match drivers

Drivers undertaking frequent, long distance journeys for business using their own vehicles. These members of your staff will submit regular high mileage reimbursement claims based upon HMRC’s tax-free Approved Mileage Allowance Payments (AMAPs): 40p per mile.

These high-mileage business drivers also bring with them increased risks of employer duty of care and legal responsibilities around vehicle suitability, reliability, ongoing maintenance, road worthiness and appropriate insurance and MOT cover. In this instance considering the merits of a company car together with fuel card support provides cost effective high mileage driving solutions that tackle duty of care and overall cost issues.

One Day drivers

Employers who ask employees to drive to regular off-site meetings, but who do not necessarily incur high mileage, could see benefits from either a mini-lease product, daily rental, short-term hire or even a pool car solution.

Twenty/Twenty drivers

Typical employee business related travel could involve short, local journeys in a vehicle which may well be old and therefore carry with it increased corporate liability. Providing a short-term rental vehicle or using a local car club could prove beneficial.

Don’t be hit for six

The ongoing management of your business drivers using their private cars can present real financial and duty of care challenges for organisations of all sizes. But as in the modern forms seen in the cricketing world, ‘one size does not fit all’. That same flexible thinking should be applied to your organisation’s business related driver travel support.

Editor’s note: You might sometimes see the industry shorthand of ‘grey’ drivers or ‘grey fleet’ used in connection with the above issue. This refers to private vehicles used on business – and not to the age of the drivers or vehicles!

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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