Karmo was featured on the Channel 7 Morning show in a segment about the rising popularity of streaming-style car subscription services and how motoring memberships can soon become the norm in Australia.
The rise of car subscriptions
The Channel 7’s tech editor Shaun White highlighted how car subscriptions are emerging as an affordable flexible alternative to car leases. “We’re subscribing to everything, so no surprise to me this came along,” he said, detailing how you can subscribe to a car by just putting your card down and completing a few financial checks.
Karmo – the biggest car subscription service in Australia
Being Australia’s biggest subscription service with a pan Australia presence, Shaun explored pricing of budget SUVs and the minimum subscription terms. Most Karmo subscribers opt for a 4 month subscription and prices for cars start as low as $230/week.
Car subscriptions vs Novated leasing vs Short term rentals
Often comparisons between car subscriptions and novated leasing are made. While novated leasing is cheaper, it doesn’t offer the flexibility of car subscription where you can cancel or upgrade to a new car after every term. Novated leasing usually has a 3-5 year term and comes with a hefty exit fee. Shaun also made comparisons to other short term rental providers like hertz and Go get which offer shorter terms but are more expensive.
Testing a new car? Subscriptions are the way to go
Another interesting aspect of car subscriptions like Karmo is that it’s a perfect opportunity to try a car. Because of the flexible terms, Shaun highlighted how car subscriptions don’t require you to take on debt and can be a great option when you have other financial commitments like a mortgage.
You can watch the full segment here.
