Car subscription services are booming in Victoria, giving drivers new options beyond traditional ownership. With companies like Carbar, Carly, Karmo, and Motopool expanding rapidly, more Victorians are considering subscriptions as a flexible, hassle-free alternative.
Dylan Anderson
What Is a Car Subscription?
A car subscription works like Netflix for your car. You pay a set fee to use a vehicle, and that fee typically covers everything except fuel, tolls, and sometimes minor wear and tear.
Included in most subscriptions:
- Registration
- Insurance
- Servicing
- Roadside assistance
In return, you get the flexibility to swap vehicles, upgrade, or cancel with relatively short notice.
Why Car Subscriptions Are Growing in Victoria
Industry forecasts predict that by 2032, 10% of all new cars will be on subscription models globally. In Victoria, rising living costs and urban lifestyles are making subscriptions more appealing.
According to Carbar CEO Des Hang, “Subscription offers peace of mind. Maintenance, insurance, and registration are all bundled in – it’s a simple way to run a car without surprise expenses.”
A 2024 Deloitte report found one in five consumers would prefer a subscription service to owning a car. Families, young professionals, and retirees are all driving this trend.
How Much Does a Car Subscription Cost in Victoria?
Costs vary based on the vehicle type and provider. Here's what you can expect:
| Provider | Car Model | Weekly Cost | Minimum Term |
|---|---|---|---|
| Carly | Kia Rio | $231* | No minimum |
| Carbar | Hyundai Kona | $279* | 1 month |
| Karmo | Hyundai Venue | $230* | 4 months |
*Each subscription provider has their own terms, read them before making a decision.
While subscriptions may seem expensive at first glance, they often compare closely to the actual running costs of ownership once you factor in depreciation, insurance, and maintenance.
Who Should Consider a Car Subscription?
Car subscriptions are ideal if you:
- Want short-term flexibility
- Don’t drive every day
- Prefer an all-inclusive monthly payment
- Want to test-drive an EV before committing
Heavy commuters should be cautious, though. Many subscriptions include mileage caps, and exceeding them can lead to additional charges.
Dylan Anderson
Subscribing to an EV in Victoria
Car subscriptions also offer an easy path to test electric vehicles (EVs). Providers like eCar Subscription note that living with an EV for several months gives drivers a better sense of real-world range and charging habits compared to short-term rentals.
Ben Whitmore from eCar said, “You need to experience your commute, family trips, and regular charging routines to know if an EV is right for you. Subscription offers that flexibility without the long-term commitment.”
Car Subscription vs Leasing vs Renting
- Car Rental: Short-term (days or weeks), higher daily rates. Ideal for holidays.
- Car Subscription: Medium-term (months), with maintenance included. Flexible.
- Car Lease: Long-term (2-5 years), often cheaper per week but includes fewer services.
Subscription offers a "best of both worlds" approach: flexibility like rental, but with stability and cost-efficiency closer to leasing.
Business and Salary-Sacrifice Subscriptions
Subscriptions are not just for individuals. Victorian businesses are turning to fleet-based subscription models to manage costs without adding assets to their balance sheets.
According to Karmo, fleets under subscription can operate vehicles off-balance-sheet if terms are under 12 months. The ATO has also allowed salary packaging for car subscriptions, making it a tax-efficient option for employees.
Des Hang from Carbar noted, “SMEs can now flex their fleets up or down based on business needs without the financial risk of long-term leases.”
The Future of Car Subscriptions in Victoria
With ongoing mergers like Carly and Carbar, and growing consumer appetite, car subscriptions are expected to surge across Victoria in 2025 and beyond.
More competition will likely lead to better deals, more EV options, and even more flexible terms for Victorian drivers.
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Dylan Anderson
Dylan Anderson
