New car subscriptions are growing rapidly in the consumer car market, and van subscriptions for businesses are starting to do the same. And as demand grows, there are several companies all trying to establish themselves in the market.
Subscription schemes go under many different names: flexible lease or rental; long-term rental or long-term hire. The essential idea is that you have a vehicle for as long as you like; from one month to several years. There is either no fee or a small charge to sign up and you can end the contract or swap the vehicle when you feel like it, subject to conditions.
Subscriptions are one of the fastest-growing segments of the automotive market, and it is a product that is certainly suitable for small businesses whose workload fluctuates by season or crucial times of year. The idea of being able to source a van or pick-up for a few weeks or months, rather than commit to a long-term lease, has obvious attractions for many business owners.
The other obvious use for a van on subscription is if you’re facing a long waiting period for a new vehicle you’ve ordered and need another vehicle to fill the gap in the meantime.
For a full explanation of all the pros and cons of subscription services, our sister site The Car Expert has a comprehensive guide. We have a more specific small-business version of this guide coming to The Van Expert soon.
What kind of subscriptions are on offer?
In the LCV market, there are a few specialist providers that have vans and pick-ups available on subscription – and the number is growing all the time.
Unlike passenger cars, there are no vehicle manufacturers currently offering subscription services in the UK, but this is likely to change over the next year or two. We will also start to see dealers offering vehicle subscriptions, thanks to new technology that effectively allows them to become subscription suppliers themselves (see more detail below).
Most vehicles on offer will be diesel or petrol, but there will inevitably be attention on electric vans as more models become readily available. In the car market, buyers have used subscriptions as a ‘try before you buy’ service, so customers can live with an EV for a few months to decide whether it will be suitable in the longer term before committing to a three- or four-year finance contract.
These are the top UK-based van subscription providers available as of August 2022. We’ll keep updating this list over time as it will evolve rapidly.
Myvandirect*
URL: mycardirect.co.uk
Myvandirect is the LCV sister of Mycardirect, one of the UK’s leading car subscription services offering new and used vehicles from a number of different brands. Its team has extensive backgrounds in finance and leasing with major car companies, and has expanded rapidly.
Claiming to offer an all-inclusive and easy experience, Myvandirect has four locations in England but offers nationwide delivery. Because it’s all one company, you can easily switch between a van and a car every few months to suit your needs at the time.
Insurance isn’t included in the advertised prices – Myvandirect can help you with that or you can sort it out yourself if you prefer. As of August 2022, prices start at £436 + VAT/month for a Vauxhall Combo Cargo on a 24-month contract, but you can go as low as six months if you prefer.
- The Car Expert interviews Mycardirect/Myvandirect CEO, Duncan Chumley
- Have a look at the range of vans that Myvandirect currently has available*
Wagonex*
URL: wagonex.co.uk
Wagonex is one of the original vehicle subscription providers, founded in London in 2016 and now based in Cardiff. The company has a selection vehicles available from more than 20 different manufacturers, although at the moment there are only about half a dozen vans to choose from as the industry continues to battle supply shortages.
Like other subscription offerings, there’s no hefty upfront payment. Instead, there’s a small refundable deposit. Road tax and maintenance are covered, although insurance is not included in the monthly fee. Terms can be anything from one month to two years.
Wagonex also powers Myvandirect’s platform and also display’s Myvandirect’s stock, so prices are the same as you’ll see at Myvandirect. Wagonex will usually have vehicles from other providers available as well, although when we checked in early August 2022 there were no others on offer as everyone continues to struggle with ongoing vehicle supply woes.
Cocoon*
URL: cocoonvehicles.co.uk
Cocoon Vehicles describes itself as a family business based in Derbyshire and operates short-term leases for all kinds of vans, as well as subscriptions for cars. You can choose between six-month and 12-month contracts, so are perfect for short term projects, probationary staff or seasonal businesses.
Prices start at £579+ VAT per month on a Renault Trafic or Ford Transit Custom. Delivery is free to England and Wales.
Flexed
URL: flexed.co.uk
Flexed can offer rolling subscription terms on both cars and commecial vehicles from one to six months. At this stage there are only a few LCVs to choose from, but this is likely to grow once vehicle supply returns to normal.
As of August 2022, prices start at £674 + VAT per month for a Toyota Hilux on a 28-day rolling contract. Insurance is available for an additional charge.
* The Van Expert has commercial partnerships with Cocoon, Myvandirect and Wagonex. If you click through to their websites and/or proceed to take out a subscription contract, we may receive a small commission. This does not affect the price you pay.
