In Talking Automotive with Mark and John Ep 14, Mark Palavestra and John Sinclair talk to Mat Prestney, Director from Plumfleet. Mat shares insight into the difference between a traditional fleet and a grey fleet. How customers in traditional fleets turn their vehicles over between 48 and 60 months and normally controlled by the employer, whereas with grey fleet employees turn their vehicle on average at 7.8 years and controlled by the employee.
He delves into how the market has changed and that grey fleet is growing. He talks through some of the risks with employees working from home and what are the implications of employees driving their own vehicle on behalf of the company.
He addresses what an employers responsibility is if an employee drives a vehicle on behalf of a company and how this falls under work safe requirements. With more than 50% of work safe accidents a result of driving a vehicle.
He talks through what employers “Duty of Care” and “Chain of responsibility”. That if an employer does not have a “duty of care” criminal charges or large fines can be brought against the directors. Directors insurance does not protect a Director from criminal charges.
He details out the need for polices and procedures to be in place and acknowledged by all car allowance employees. These need to be reviewed on a regular basis. They need to cover all aspects of the vehicle including servicing, checking tyres and vehicle replacement. He also details the need to address points pertaining to the driver including valid drivers licence, demerit points, eye care etc. Mat describes some of the solutions Plumfleet offer in this space.
Lastly he looks into pool vehicles and implications under Covid including regular sanitation of vehicles to protect employees.
Mat suggests that car allowance is a great opportunity for dealers/ OEM’s to build programs for car allowance buyers not just novated lease.
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Production and editing by Ky Sinclair.