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Andrew Leech
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Mercia Fleet Management Identifies Savings on Grey Fleet
Fleet Evolution’s dedicated fleet division, Mercia Fleet Management, is urging UK companies to rethink their approach to managing grey fleet usage – and start saving.
By ditching automatic mileage payments under the Approved Mileage Allowance Payments (AMAPs) scheme and implementing smarter alternatives, organisations could cut grey fleet reimbursement costs by up to 25%, according to Mercia Fleet Management, the fleet management arm of EV salary sacrifice specialists Fleet Evolution.
“Grey fleet remains one of the biggest hidden costs and risk exposures for many UK businesses,” said Andrew Leech, Managing Director of Fleet Evolution and Head of Mercia Fleet Management. “Most organisations aren’t managing it effectively, which leads to unnecessary spend and unacceptable risk levels for employees.”
The Hidden Costs of Grey Fleet
There are an estimated 14 million grey fleet vehicles on UK roads. According to the BVRLA, they cost businesses around £5 billion in the private sector and £786 million in the public sector annually due to mileage reimbursement under AMAPs.
Under the scheme, employers can reimburse up to 45p per mile for the first 10,000 miles, dropping to 25p thereafter. For companies with high numbers of grey fleet users, this quickly becomes a major cost centre.
But the financial cost is just part of the puzzle.
Risk vs Reward: The Employee Safety Factor
Beyond cost, risk looms large. Many employee-owned vehicles used for business are over eight years old, not maintained to manufacturer standards, or lack adequate business insurance.
Leech paints a stark picture:
“Imagine asking an employee to drive a 150-mile round trip in an ageing personal vehicle during peak hours. You’re not just spending £67.50 on AMAP reimbursement – you’re taking on considerable risk, both financially and in duty of care.”
A Smarter Alternative: Mileage Decision Tree in Action
To counter this, Mercia Fleet Management has developed a mileage-based decision tree, built into its client portal. It recommends transport options based on journey distance and cost-effectiveness:
Under 5 miles: Bus, cycle, or taxi
15–25 miles: Own vehicle (after safety & insurance checks)
25–100 miles: Train or taxi (cost-dependent)
100+ miles: Hire car via Mercia Fleet’s admin team
For example, a 150-mile trip via AMAP costs £67.50. With a hire car, the total (rental + fuel) is around £50, saving over 25% while ensuring the vehicle is modern, insured, and safe.
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Full-Service Grey Fleet Management
Mercia’s approach goes beyond recommendations. It includes:
Fleet policy development
Licence and risk checks
Vehicle acquisition and scheduling
Full logistics and daily rental
Grey fleet data capture and reporting
“It’s not just about cost, it’s about confidence,” says Leech. “You know your employees are in safe, compliant vehicles, and your business is in control of the fleet spend.”
A Client-Driven Solution That’s Scaling Fast
What began as a response to demand from salary sacrifice clients has grown into a fully-fledged operation.
“We launched Mercia Fleet Management to meet a need for smarter, more personal fleet services,” said Leech. “Its success shows businesses are ready to solve the grey fleet puzzle, not just tick boxes.”
About Mercia Fleet Management
Mercia Fleet Management, a division of Fleet Evolution, provides tailored fleet solutions across grey fleet, employee mobility, and risk management. Its services are designed for businesses that want high-touch, cost-efficient fleet support without compromise.
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