What is the novated lease model?
A novated lease is a three-way agreement where an employee leases a car, and their employer makes payments and covers running costs from the employee’s pre-tax salary. This salary sacrifice mechanism reduces taxable income, offering significant tax benefits and simplifying vehicle budgeting for employees
Novated leases are becoming more accessible with more Australians employers adding it to their benefits package. However, because the model is centred around cost savings, it often results in employees having to compromise with cars that don’t suit their needs.
Novated leases are often all-inclusive and cover the cost of maintenance, registration, insurance and service. However, most novated providers charge steep management fees and early termination fees that can quickly make novated car plans expensive.
Considering a novated lease?
Why choose a car subscription over a novated lease?
- You’re in control
Unlike a novated lease which is a three-way agreement between you, your employer and the novated lease provider, a car subscription with Karmo is just between you and Karmo. By keeping your employer and car plan separate, you have the ultimate control over both your car plan and career. Based on where life takes you, you are free to swap both your job and your car without any awkward paperwork.
- Don’t settle for a car you don’t like
Most novated providers match you with a car you don’t like by promising maximum savings. Over time this can become a burden and you’ll find yourself having to make more and more compromises and adapt to your novated lease. A car subscription puts you in the drivers seat by giving you the option to choose from a wide variety of EV and non EV cars and adapts with your changing lifestyle. Whether you’re making room for a new addition to the family or moving to a new city for a job, a car subscription has you covered.
- Avoid long-term commitments
Most novated leases require a minimum term of at least two years and don’t offer a swap before the end of the minimum term. Car subscriptions with Karmo start from just 4 months. This gives you the opportunity to try out a car and make adjustments to your car plan with every term. You’re not tied down to a single car and drive a car that suits your needs at every stage of your life.
- No hidden costs
Novated leases promise tax savings but often have hidden costs such as administration fees, ongoing management fees and high early termination fees. This can make your car access costs significantly higher than what you’ve budgeted for. A car subscription bundles the cost of the car, maintenance, insurance, rego and roadside assistance into one single transparent fee which ensures you never have any unexpected car costs. Novated leases provide a pathway to eventually own the car but since the residual value you are required to pay is calculated based on the car’s initial value, most novated lessees lose money because of the increased depreciation the automotive market is witnessing now.
Why Choose Karmo as your novated lease alternative
- Trusted by customers
Karmo is Australia’s largest car subscription service. In 2024, our customers travelled over 60 million kilometres. With over 1000 5 star reviews on Google, Karmo is committed to making your car subscription as convenient as possible. Our easy no credit check application and one simple weekly fee model ensures complete transparency every step of the way.
- Car access made easy
At Karmo we aren’t just another lease provider, we’re reimagining what it means to own a car by simplifying access to new and reliable cars. By partnering with over 130 dealers across Australia we’re helping thousands of Australians skip long waitlists and drive a car of their choice today.
- Specialist teams that care.
We have dedicated teams in Melbourne, Sydney, Adelaide, Brisbane and Perth that are available to assist every step of the way. Unlike leases and rentals, our car subscription model has the customer at the centre and not the car. This ensures great customer experience throughout your subscription journey.
Karmo vs Other subscriptions vs Novated leases
Karmo car subscriptions, other subscriptions and novated leases both offer car plans. Compared to novated leases Karmo has no joining fees or swap fees and offers significantly more flexibility. Karmo car subscription is all-inclusive, flexible and transparent, making it an excellent choice for salaried employees looking for simplified and affordable car access.
Features
Other Subscriptions
Rent to own
New cars
No application, sign up or swap fees
No credit check
Fuel
Registration & Insurance
Maintenance & servicing
No long-term commitment
No hidden costs
Features
Other Subscriptions
Leasing
New cars
No application, sign up or swap fees
No long-term contracts
New car rotation
Registration
Maintenance & servicing
Insurance
No hidden costs
Our subscription cars
View All Vehicles
Hyundai
Venue
$230
Per Week
Hyundai
i30 Sedan
$269
Per Week
Hyundai
i30 Hatch
$289
Per Week
Smart
#1
$289
Per Week
Smart
#3
$299
Per Week
Hyundai
Tucson
$355
Per Week8,000+ satisfied drivers on the road
With flexible and all-inclusive plans, there is only one thing to worry about, enjoying every drive. Here’s what our customers say about Karmo car subscriptions.
What do we mean by all-inclusive?
New car experience
The cost of your vehicle is included. Karmo ensures that our vehicles are always new, with mileage limited to 15,000km, providing you with a permanent new car experience.
Vehicle registration
Karmo takes care of all the necessary paperwork and registration costs ensuring that each car is properly registered.
Maintenance & servicing
All servicing, maintenance and tyre costs are covered by Karmo, ensuring that your vehicle remains in optimal condition and saving you money.
Roadside assistance
Karmo offers 24/7 roadside assistance, ensuring that help is just a phone call away in case of emergencies.
Vehicle insurance
Full insurance coverage is included, providing you with financial protection in the event of an accident or damage.
Flexible plans
No more 3 year contracts! You can sign up for the duration you need and have the option to stop or swap at the end of your plan, providing you with flexibility and freedom from lengthy commitments.
Generous mileage
Karmo’s car subscription plans include a generous allowance per week of driving. Any overages are simply charged per KM.
Less fees & no hidden costs
Unlike competitors, Karmo won’t charge you for choosing us! At Karmo you will enjoy zero application, signup and swap fees, making it more accessible and cost-effective compared to other providers.
No long-term commitments
We believe a car subscription service should be just as flexible as any other subscription service. That’s why we provide our drivers a convenient cancellation policy.
New car experience
Vehicle registration
Maintenance & servicing
Roadside assistance
Vehicle insurance
Flexible plans
Generous mileage
Less fees & no hidden costs
No long-term commitments
What do we mean by all-inclusive?
New car experience
New car experience
The cost of your vehicle is included. Karmo ensures that our vehicles are always new, with mileage limited to 15,000km, providing you with a permanent new car experience.
Vehicle registration
Vehicle registration
Karmo takes care of all the necessary paperwork and registration costs ensuring that each car is properly registered.
Maintenance & servicing
Maintenance & servicing
All servicing, maintenance and tyre costs are covered by Karmo, ensuring that your vehicle remains in optimal condition and saving you money.
Roadside assistance
Roadside assistance
Karmo offers 24/7 roadside assistance, ensuring that help is just a phone call away in case of emergencies.
Vehicle insurance
Vehicle insurance
Full insurance coverage is included, providing you with financial protection in the event of an accident or damage.
Flexible plans
Flexible plans
No more 3 year contracts! You can sign up for the duration you need and have the option to stop or swap at the end of your plan, providing you with flexibility and freedom from lengthy commitments.
Generous mileage
Generous mileage
Karmo’s car subscription plans include a generous allowance per week of driving. Any overages are simply charged per KM.
Less fees & no hidden costs
Less fees & no hidden costs
Unlike competitors, Karmo won’t charge you for choosing us! At Karmo you will enjoy zero application, signup and swap fees, making it more accessible and cost-effective compared to other providers.
No long-term commitments
No long-term commitments
We believe a car subscription service should be just as flexible as any other subscription service. That’s why we provide our drivers a convenient cancellation policy.
Apply for Karmo's car subscription service
Karmo’s car subscription application process is quick and easy, just like a car subscription service should be. With no credit checks or finance required, the application can be completed in under 5 minutes with the added bonus of accessing pre-approval instantly. With no application fees and a convenient cancelation policy, you can subscribe to your dream car risk free with Karmo.
- Apply in minutes
With no credit checks or finance required, the application can be completed in under 5 minutes with the added bonus of accessing pre-approval instantly.
- We get in touch
Your preferred hub will contact you to find a suitable car and subscription plan for your needs.
- Drive away, within a day
If your car is in stock, you can drive away the same day and begin your subscription journey!
- 5 min to complete
The latest news
10 June 2025
EOFY Fleet Subscriptions: How to Upgrade Your Fleet Before Tax Time
10 June 2025
EOFY Fleet Subscriptions: How to Upgrade Your Fleet Before Tax Time
The latest news
Need a hand?
We’re here to help! If you have questions or need advice, you can easily reach out to us via email or give us a call. Prefer to find answers on your own? Check out our FAQs for quick solutions and helpful tips. Whatever you need, don’t hesitate to contact us—we’re ready to support you every step of the way.
Managing toll payments for your Karmo subscription vehicle
Karmo’s terms and conditions require that tolls be paid directly to the toll operator. This helps keep variable weekly costs to a minimum and help our customers budget for their subscriptions with ease. To make it easier for you, we strongly recommend fitting a toll tag to your vehicle. An administration processing fee is applicable to any unpaid tolls, that we receive on behalf of your vehicle. In such cases, you will be charged the unpaid toll charges and the administration charging fee on your next weekly payment.
How much is the administration processing fee for tolls and how can I avoid it?
The administration processing fee is $5 for each notice we receive. We have reduced the administration fee to $0.50 until November 14, 2024 to keep your costs as low as possible and to allow you time to order and install a toll tag. To ensure a seamless experience and avoid incurring the administration processing fee, we kindly request that you have a toll tag in the vehicle at the earliest.
Why are we moving to toll tags? What’s the difference?
Unfortunately as of October 11, 2024 Karmo cars will need to stay on the Karmo account to ensure there is a fall-back for unpaid tolls. You will need to get a toll tag to ensure tolls are nominated to you before they reach us. Unlike toll tags, a toll account is linked to the rego and you risk accidentally receiving toll charges even after you’ve moved into another car. So, if you’ve already linked your car to your toll account you will need to unlink it and get a toll tag moving forward.
Need more information or have additional questions?
If you have any questions or require further information about the administration processing fee or getting a toll tag, our dedicated customer support team is ready to assist you. Please feel free to reach out to us, and we’ll be happy to help.
What is the eligibility criteria for car subscription?
To qualify for a car subscription, you need to meet the following requirements:
- Age: You must be between the ages of 25 and 75.
- Proof of Serviceability: You need to provide evidence of your ability to cover the subscription costs.
- Valid Driving Licence: You must possess a valid and unrestricted driving licence.
- Driver Declaration: You are required to pass the driver declaration, which ensures compliance with our safety standards.
If you have any questions or need further clarification regarding these criteria, please feel free to reach out to our customer support team.
Does Karmo perform a credit check for a car subscription application?
At Karmo, we understand that everyone’s financial situation is unique, and we aim to provide our services to as many customers as possible. We do not require a traditional credit check as part of our application process. Instead, we focus on assessing your ability to pay for the service.
To ensure we can make an informed decision and tailor our offerings to your specific needs, we kindly request that you provide us with a copy of your pay slip and a copy of your bank statement as part of the application process. These documents help us evaluate your financial capability to meet the payment requirements of the service.
We value your privacy and treat all personal information with the utmost confidentiality. Rest assured that any documents you provide will be handled securely and used solely for the purpose of assessing your eligibility for our service.
Our aim at Karmo is to make our services accessible to individuals from various financial backgrounds. By considering factors beyond just credit ratings, we strive to provide an inclusive and fair experience for all our customers.
If you have any concerns or questions regarding our application process or the information we require, please don’t hesitate to reach out to our customer support team at Karmo. We’re here to assist you and provide the necessary guidance throughout the application process.
Thank you for considering Karmo. We look forward to helping you enjoy our services without the stress of credit checks!
Who is covered by Karmo provided insurance in my subscription car?
To ensure compliance with our insurance policy, it’s important to note that coverage is limited to the person listed on the contract, as well as any additional drivers who are explicitly mentioned on the subscription agreement.
This means that only the primary subscriber and any additional drivers specifically listed on the contract will be covered by our insurance policy during the subscription period. It is essential to adhere to this requirement for the protection and safety of all parties involved.
If you have any questions or need to add an additional driver to your subscription contract, please reach out to our team. We will be glad to assist you in updating the necessary information to ensure proper coverage.
Please remember that driving without the appropriate coverage may result in liability and potential financial risks. It is always our priority to prioritise the safety and security of our subscribers and provide comprehensive insurance coverage as per our policy guidelines.
How am I charged for my Karmo car subscription plan?
To streamline the payment process and ensure convenience, all payments for our car subscription service are charged directly to the credit card that you have allocated. This allows for automated and hassle-free transactions, eliminating the need for manual payments or invoices.
If you have any questions or need assistance regarding the payment process or updating your credit card information, please don’t hesitate to reach out to our customer support team.
What is included in a Karmo car subscription plan?
At Karmo, we take pride in offering comprehensive car subscription plans that cover various services and expenses related to your vehicle. Our subscription plans include:
- Cost of the Car: The subscription fee covers the cost of the vehicle itself, allowing you to enjoy driving without the burden of car ownership.
- Registration Fees: We handle the registration fees associated with the vehicle, ensuring that it remains legally compliant throughout your subscription period.
- Roadside Assistance: Our car subscription plans include roadside assistance services, providing you with peace of mind in case of any unexpected breakdowns or emergencies on the road.
- Karmo Provided Damage Cover: We provide damage coverage for the subscribed vehicle, safeguarding you against potential damages and accidents.
- Servicing and Maintenance: Servicing and maintenance of the vehicle are included in the subscription plan, ensuring its optimal performance and reliability.
By bundling these services and expenses together, we aim to offer a hassle-free and all-inclusive car subscription experience. If you have any specific inquiries or require further details about our subscription plans, please don’t hesitate to contact our customer support team.
Frequently Asked Questions
Karmo’s all-inclusive car subscription model, unlike other subscriptions, only provides new cars with the option of upgrading or swapping to a new car every four months.