Car Subscriptions on the rise
While car ownership remains on the decline,
the subscription model is accelerating with
providers such as Carbar, GoGet and Carly
reporting “staggering growth”
“The flexibility and ability to pay as you go
provided by a subscription is working to our
advantage in these conditions,” Des Hang, cofounder
and CEO of subscription service Carbar,
told Business Insider Australia earlier this month.
“Australians are reassessing their finances and
are realising the true cost of car ownership.”
The model has seen so much growth that
Carbar has even seen a four to six-week waiting
list emerge.
“We were always bullish on our growth, but this
has outstripped anything we expected or have
seen abroad,” Hang said.
According to Hang, Carbar has grown more
than 160% since the beginning of the year, at
the same time that sales continue to decline.
Meanwhile, growing at almost 80% year-on-year
is Carly, operated by Collaborate Corporation.
“[The economic downturn] presents an
opportunity for Carly car subscription to provide
consumers and businesses with vehicles
without the long-term financial commitment
and risk normally associated with lease, loan
and outright purchase,” Collaborate CEO Chris
Noone said, noting new enquiries were up 60%
in May.
“It is likely that concern about the economy will
accelerate the shift to car subscription.”
With car sales considered a key economic
indicator of consumer confidence, the latest
stats hardly provide much immediate hope.
8 ISSUE 23 2020 / WWW.AFMA.ORG.AU