Affinity Schemes: Tackling Grey Fleet Risks and Shaping the Conversation

For many UK employers, the “grey fleet” remains a hidden challenge. Employees using their own cars for business mileage may seem cost-effective, but the reality is often very different. Older vehicles, patchy service histories, poor emissions performance, and the lack of central oversight expose businesses to financial, safety, and compliance risks. At the same time, the cost of reimbursing mileage at HMRC rates quickly adds up, draining budgets that could be better invested elsewhere.

This is where affinity schemes offer a powerful solution. By partnering with OEMs through structured programmes, businesses can encourage employees to access new vehicles at preferential rates, often directly through their employer. The benefit is twofold: staff enjoy a cost-effective path into a brand-new car, while employers reduce the reliance on unmanaged grey fleet vehicles. The result is safer, cleaner, and more predictable mobility.

With the UK pushing ahead on its road to net zero, the timing could not be better. Electrification is already reshaping fleet and retail markets, and affinity schemes are ideally placed to accelerate adoption. Employees gain the opportunity to move into EVs or low-emission vehicles with manufacturer support, while employers strengthen their ESG credentials by cutting scope 3 emissions linked to business travel.

For OEMs, this channel also makes commercial sense. Affinity sales provide a reliable route to incremental volume—often up to 10%—at a time when private retail demand is softening. Conversion rates are higher than other channels, and because schemes are fully controlled by the manufacturer, OEMs decide which partners to approach, which models to feature, what discounts to apply, and where to focus their efforts, whether that’s driving EV uptake or managing older stock. Affinity also offers greater flexibility than salary sacrifice or company car schemes, with a wider mix of models and fuel types available. Together, these benefits help OEMs improve sales quality, protect brand value, and strengthen relationships with current and future fleet customers.

These themes are set to be discussed at Fleet & Mobility Live 2025, taking place at the NEC this October. The event is the UK’s largest gathering for fleet, mobility, and corporate transport decision-makers, bringing together OEMs, leasing providers, and service specialists. Key topics this year are expected to include fleet electrification, workplace charging, mobility budgets, and the future of benefit-in-kind taxation.

VPS believes affinity schemes deserve a prominent role in this conversation. They represent the bridge between fleet and retail, enabling OEMs to extend their influence beyond corporate fleets and into the wider employee base. In doing so, they help employers tackle grey fleet cost and compliance issues, while giving manufacturers a controlled way to sell more cars to more people without eroding brand equity or residuals.

At VPS, we specialise in running end-to-end affinity programmes that take the complexity away from OEMs. Every scheme we deliver is backed by a branded centralised platform, a dynamic configurator with CRM integration, a dealer portal for seamless enquiry management, robust authorisation controls, and comprehensive marketing and partner engagement. This ensures OEMs can focus on growth while we handle delivery with speed, efficiency, and compliance.

VPS will be tracking the debates closely in October. One thing is certain: with grey fleet risks mounting and electrification accelerating, affinity schemes are no longer a nice-to-have—they are fast becoming an essential tool in the mobility strategy toolkit.