Despite difficult trading periods for many businesses in 2024 and the aftermath of the recent General Election, it has been reported that more companies are turning to a more flexible approach to traditional car leasing and purchasing, these are called Car Subscriptions.
What is a Car Subscription?
Very much like you subscribe to your music or TV streaming service, a car subscription is very much the same. You subscribe to a particular car for usually 1-month or more and then you have the ability to swap and change the cars with ease.
Not only is it easy to drive the latest cars on a flexible basis, but that monthly payment usually includes the motoring essentials including the rent, maintenance, servicing, road tax, breakdown assistance and in most cases the manufacturers warranty.
How can these Benefit Businesses?
Whether you run 1 car or 1,000 cars, flexible car lease arrangements such as these can help you increase or decrease your company fleet with ease and without the long-term commitments you get with a traditional contract hire or lease.
Lower upfront payments can help with cash flow, allowing you to utilise capital elsewhere in your business and if the car is for a new start employee who doesn’t make it through their probation period, you can send it back with no early termination charges.
Also, as maintenance is included, you no longer have to worry about budgeting for routine servicing or tyres. You literally add the vehicle to your fleet policy and fuel or charge it.
What are the Other Benefits of Vehicle Subscriptions?
Most vehicle subscription providers in the UK offer the very latest models, this means that you could utilise electric vehicles in your fleet to see how they fit into your workflow without the commitment of purchasing or a car lease. You also gain access to the latest technology be it Apple CarPlay and their continuous updates or safety features such as lane assist and intelligent speed assist.
One invoice for multiple vehicles to help streamline accounting processes and payments are available from most providers along with dedicated account managers to make new additions to the fleet easy and quick.
What Size of Business do I need to be?
It doesn’t matter if you are a one man business owner or you are a large corporate company with hundreds of employees, car subscriptions can work for most companies either as an additional service to car rental and/or car leases, or for you to purely run these flexible vehicle options.
It may also be a benefit to new start-up businesses who can obtain a credit line through the larger funders, car subscriptions give that avenue to allow you to take a vehicle even with no accounts filed or negative shareholder funds.
Overseas parent companies can also take advantage of a team of underwriters who understand the complexities of running such a business, enabling credit lines for vehicle subscriptions for UK offices.
How do I Get Car Subscriptions for My Business?
Just google “Business Car Subscriptions” and take a look through the multiple listings that it throws at you, read the reviews, look at the business on companies house and ensure that you choose a company that would fit in with your own ethics.
Applying for a car subscription is a pretty simple process with most flexible vehicle providers and ID/Documentation may need to be provided for compliance, but a credit line can be set-up with 24 hours in most cases.
Conclusion
There is a reason why so many businesses are turning to Car Subscriptions for their company fleet requirements, flexibility is key with any business and these services allow for quick changes to help seasonal trends in business or new employees.
Benefitting from one payment covering all of the essentials, it also helps cut down in administration work and accounting processes, really every vehicle you have within your business would benefit to being on one of these ultra-flexible solutions.
Cocoon Vehicles
Cocoon Vehicles is a family-owned business that started in 2007, providing the very best customer service they can really help support you and your business with their flexible approach to traditional car leasing.
Find out how Cocoon can help you by calling 01332 290173 or by visiting their website: https://cocoonvehicles.co.uk/business/
