What Are the Different Types of Fleet Cars & How They Are Changing

What types of fleet car are there and how are they changing? Discover now what can work for your business today.
Different types of fleet cars

There are many schemes for how a company structures their fleet. These differences can affect taxes and regulations. But regardless of the fleet setup, it is important to understand what a fleet car is and differences between the available types of fleet cars.

Recently businesses are having to face a new reality for what defines a work environment. The result is a need to pay closer attention to the structures of their fleets and how it affects business expenses. This piece will look at the different types of fleet cars and how companies can better manage business travel, considering the changing meaning of the term.

What Is A Fleet Car?

In the corporate world, companies can choose from three different fleet cars, including:

1. Company Car

A company car is owned or leased by an employer for the use of a single employee. The employee assigned the company car can use the vehicle for personal and business purposes. They are responsible for recording business and personal mileage for legal and tax reasons.

What is a fleet car

With a company car the business will maintain and fuel the car for business-related use. This puts the company in control of their fuel costs. The vehicle makes the employee’s work easier and helps portray the organisation as a good place of work.

Get A Free Company Car Policy Template

2. Pool Car

Unlike a company car, the pool car is available to different employees. Pool cars are used by different employees for diverse business-related needs. These vehicles are essential tools and attract lower taxation. It is important to classify company cars and pool cars properly to avoid stiff legal and financial penalties.

Read more: What is a fleet pool car?

3. Grey Fleet

If a company uses a grey fleet, its employees use their personal or hired cars for business travel. If employees purchased the vehicles under company-sponsored ownership schemes or claim cash-back allowances or fuel expenses, the cars are considered a grey fleet. This type of arrangement is ideal for organisations with low mileage where maintaining a fleet will be too expensive.

Many companies will have to depend on grey fleets for their employee business travel needs because of the peculiarities of remote work. So long as employers comply with industry and legal regulations, a grey fleet is an effective way to increase business operations and lower running costs.

Read more: Is a grey fleet right for your business?

The Changing Definition “What is a Fleet Car” & Business Travel

A recent Fleet News article raised concerns about how more companies are embracing work from home policies and the effect on the use of fleet cars. According to a BT Skills for Tomorrow and Small Business Britain survey, 37% of SMEs in the UK expect their employees to continue working from home and want to reduce face-to-face contact in their business operations.

What is a fleet car when you are working from home

This has the potential of making almost every home-based employee’s vehicle trips business-related. Placing the responsibility for road safety and expenses on the employer.

Want advice on how to better manage your fleet? Our fleet experts can give you a free consultation!

For companies that depend on a grey fleet, a large proportion of home-based employees can create financial challenges. Because employees do most of their work from home, they can classify any work-related trips as a business journey. Employers who rely on grey fleets need to ensure their employees only use safe and fit-for-purpose vehicles to complete business travels.

Considering the legal, financial and ethical implications for employers, it is important for fleet managers to identify the potential issues that could arise over the mass adoption of work from home policies. 

Doing this will allow management to create proactive measures such as the use of fleet management software with vehicle tracking capabilities. It will also help managers reposition their organisations to leverage home-based employees for improved operational efficiency.

There is a lot to consider when structuring a company fleet scheme. Times are changing and while some are driving less, many more companies are looking to invest more into their fleets. Adopting innovative fleet management solutions can help companies get the best out of their fleets.

Benefits of Tracking Fleet Cars

Tracking is important for fleet cars, more so for Electric Vehicles. The latter are more expensive than their gasoline-powered siblings and require top-tier safety. You don’t want to spend on a costly Tesla and get it stolen, do you?

Get a Beginners Guide to Tracking Fleet Cars:

Theft Prevention

A lock

Fleet tracking helps curb theft by monitoring the vehicle’s location in real time. You can recover a fleet car if anyone steals it. All you need do is share the location with the police.

Enhance Safety

GPS tracking also enhances employee safety. Drivers can reach out to dispatchers for help in dangerous situations. And the dispatcher can send help quickly, knowing the driver’s location.

From the above points, you’ve likely got reasons to buy an electric vehicle as your next fleet car. However, ensure you use the services of a reliable fleet tracking company like Vimcar so you can get optimum value from the electric car.

Improve Efficiency & Fleet Cars

Tracking electric fleet cars ensures they are used efficiently. A GPS tracker can reveal if a vehicle is in use or not and for what purpose. That way, you can keep employees accountable and ensure they use these vehicles properly.

The Rising Trend of Electric Vehicles (EVs) as Fleet Cars

Fleet cars charging

EVs are changing everything about the automotive world, including the composition of company fleets. Forced to meet sustainability guidelines, companies have adopted EVs to cut back on their carbon footprint.

Are you thinking of adding EVs to your fleet? Here are some thoughts to guide you along the way.

Should I Buy An EV Fleet Car?

There are reasons to buy an EV — and reasons you should not. We’ll start with the latter, the first of which is that EVs are expensive. Yes, government subsidies are making EVs cheaper; still, an electric car costs more than a gas-powered model.

A fleet car drawn on the floor

Also, EVs have range problems. While batteries have improved, they still require frequent recharging for decent mileage. This can discourage businesses that have employees that have to make long business trips.

Even with all these, an EV can be a beneficial addition to your fleet. An EV has less moving parts than a gasoline car and faces less wear-and-tear. This decreases maintenance costs and reduces fleet running costs.

Electric fleet cars attract incentives and benefits, especially from the government. For example, EV owners pay lesser benefit-in-kind charges. That, combined with zero fuel costs, makes EVs more affordable to own in the long run.


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