Why car subscriptions make sense for growing businesses
For SMEs, flexibility, cash flow management, and employee satisfaction are crucial. Car subscriptions provide an adaptable alternative to traditional leasing or company car schemes, offering benefits such as:
- Short-term contracts with no long-term debt exposure.
- Fixed monthly costs for easier budgeting.
- Fast access to vehicles for new hires or project teams.
- Option to scale your fleet up or down as your company evolves.
- Maintenance, tax, and breakdown cover typically included.
Wagonex — Great for Managing Multiple Subscriptions
- Acts as a platform connecting SMEs with multiple vehicle suppliers nationwide.
- Ideal for growing companies needing to manage several subscriptions at once.
- Simple digital onboarding and transparent pricing system.
- Wide range of vehicles from city cars to business SUVs.
- Flexible contracts starting from one month upwards.
- Customisable business packages available for fleet managers.
Cocoon Vehicles — Best for Established SMEs and Credit-Line Flexibility
- Cater to SMEs with flexible contracts from 1–12 months.
- Mileage options from 666 to 6,000 miles per month for different business demands.
- Fast vehicle delivery — typically within 3–5 working days once approved.
- Allows companies to use their own fully comprehensive insurance policy, often cheaper for fleets.
- Ideal for businesses that prefer to keep vehicles long-term — up to 3 years old.
- Family-run business with proven support for SMEs and start-ups.
Flexigo — Premium Subscription Service Covering England and Wales
- Specialises in business-ready car subscriptions with premium brands.
- Wide range including Audi, BMW, Mercedes-Benz, Land Rover, and Volvo.
- Supports companies across England and Wales with quick, personalised service.
- Offers scalable solutions for businesses expanding regionally.
- Business-friendly approvals — even for younger SMEs.
- Allows corporate insurance use or direct coverage through Flexigo.
Flexed — Practical Short-Term Solution for Regional SMEs
- Based in York, offering UK-wide delivery.
- Ideal for local SMEs wanting predictable, monthly budgets.
- Contracts from 1–12 months with 1,250 miles per month included.
- Perfect for smaller firms hiring vehicles for project staff.
- Strong customer support for new business accounts.
Ezoo — Electric-First Provider with Salary Sacrifice Options
- Focused entirely on electric vehicle subscriptions for SMEs.
- Offers Salary Sacrifice solutions for companies seeking tax-efficient EV access.
- Insurance, maintenance, and servicing included in the monthly price.
- Flexible contracts suitable for company directors and employees alike.
- Perfect for sustainability-focused businesses and those meeting ESG goals.
- Offers Tesla, Polestar, BMW, and other leading EV brands.
Evogo — Best for Affordable Company Car Alternatives
- Budget-friendly provider with a focus on value for SMEs.
- Access to popular brands like Ford, Vauxhall, and Kia.
- Ideal for companies needing affordable transport for sales or operations staff.
- Short-term and medium-term contracts available.
- Straightforward approval process for limited companies.
Drive Fuze — Modern Subscription Model for Business Users
- All-inclusive subscription with insurance, servicing, and tax covered.
- Offers a wide mix of cars, including BMW, Renault, and MG.
- Ideal for small business owners wanting simplicity and clear costs.
- Digital-first platform with fast onboarding and clear billing.
- Flexible enough to cover both personal and company use.
Mocean — Best for Simple All-Inclusive Contracts
- Run by Hyundai UK, offering business-friendly EV and hybrid models.
- All costs included — insurance, tax, maintenance, and breakdown cover.
- Perfect for smaller firms that want a single monthly payment with no surprises.
- Easy to scale vehicle numbers as your business grows.
- No long-term credit commitments required.
Pivotal — Premium Subscription for Executive and Fleet Use
- Backed by Jaguar Land Rover, offering prestige vehicles such as Range Rover and Defender.
- Ideal for directors, consultants, and client-facing professionals.
- Full maintenance and servicing included in all plans.
- Flexible rolling monthly contracts with luxury fleet support.
- Excellent for companies looking to enhance brand image.
Compare all UK business car subscription providers
Compare the leading options for growing companies using our Car Subscription Comparison page. Easily review mileage limits, contract flexibility, and pricing side by side before making your choice.
Frequently Asked Questions (FAQ)
1. Can SMEs claim VAT back on car subscriptions?
Yes, in many cases. If the vehicle is used solely for business purposes, SMEs may be able to reclaim VAT on the monthly car subscription payment. Always confirm with your accountant, as mixed personal and business use may limit the reclaimable amount.
2. Do car subscription providers offer fleet management for SMEs?
Yes. Providers such as Flexigo and Cocoon Vehicles offer flexible business accounts and can manage multiple vehicles under one agreement, making it easy to scale as your company grows.
3. Are car subscriptions tax-deductible for limited companies?
Generally, yes. Most car subscriptions are considered operational expenses, meaning they can be claimed as a business cost. It’s advisable to verify the specific tax treatment with your financial adviser.
4. Can employees or directors use car subscriptions personally?
Yes. SMEs can allocate cars to directors or staff for both business and personal use. Some providers, such as Ezoo and Flexed, also offer Salary Sacrifice options for electric vehicles to make this more tax-efficient.
5. How quickly can a business get vehicles delivered?
Many providers, including Cocoon Vehicles and Flexigo, can deliver in-stock cars within 3–5 working days once business approval and payment are confirmed.
