Thepros
- Easyonlineshoppingtakesthefootworkand
stressoutofbuyinga car.Someproviderswill
evendeliverit toyou. - Flexibilityto changevehiclesto suitlifestyleor
differentneeds. - A singlepaymentcoverseverything.Nomore
forgettingtopayyourregoorinsurancebill. - Theabilitytonotpayfora carwhenyoudon’t
needone,suchaswhentravellingoverseas. - Thepromisethatallcars,includingusedones,
willbeingoodshape. - It allowsyoutotrya modelortypeofvehicle
beforecommittingtobuyingone.
Thecons
- Upfrontpaymentswhentakinga subscription.
- Yoursubscriptionmayincludeconditionssuch
aslimitedkilometresandrestrictionsonadditional
driversorusingthevehicleforbusiness. - Theweeklypaymentmayfactorin depreciation,
meaningyou’repayingfordepreciationfora car
youwon’town. - Carmanufacturersubscriptionwilllimitthe
typeofvehiclesonoffer. - Aswithrentinga house,youcan’tmakeany
modificationstothevehicle. - Car subscriptions may not be available in^
your area, particularly if you live outside the eastern
states. M
David Bonnici is a senior writer at WhichCar.com.au.$269 a week with an up-front fee of $1699 should
you want to hang onto this car for the term of the
subscription, which has no minimum term.
Alternatively, you can opt for a flexible Shift sub-
scription, which will let you swap from the CX-5 to
another vehicle every three months for $379 a week
with a $2000 upfront fee. This is great if you really
like that new car smell.
These prices include insurance (subject to
liability excess), registration, roadside assistance
and maintenance. And for many people this would
also include the cost of financing a vehicle, which
in the case of a $30,000 unsecured loan would be
about $155 a week over five years based on an 11.9%
interest rate.
Manufacturers are also adopting the subscrip-
tion model, though so far this is mostly confined
to luxury brands. Audi will be one of the first to
introduce the concept in Australia with its Audi
on Demand service that from next year will pro-
vide subscribers with a selection of models to suit
their lifestyle.
Other brands such as BMW, Mercedes-Benz,
Porsche, Volvo and Lexus, which also have sub-
scription services overseas, will look closely at how
Audi fares in Australia before fully committing to
the concept here.
Such subscription rates will cost anywhere from
$1500 to $4000 a month, and even more for high-end
sports cars. It’s hoped more mainstream brands
such as Ford and Toyota will enter the market to
offer more affordable options.
Audi will
be one of
the first to
introduce
the concept
in Australia
from next
year