Turners Automotive Group is collaborating with Australian-listed Collaborate Corporation to introduce a car subscription service to New Zealand.
Customers can take up a car for a minimum of a month, then hand it back or switch to driving another one.
Collaborate Corporation, a tech-focused car-sharing and vehicle subscription business based in Australia, launched its first flexible car subscription offering called ‘Carly’ earlier this year.
Turners Automotive Group invested in Carly, acquiring a 12.13% stake in Collaborate Corp and investing $1 million.
“People nowadays are more focused on lifestyle, they may contract or relocate, they may take extended leave, or their circumstances may change in a way they don’t need a car all the time,” Collaborate chief executive Chris Noone says.
“A monthly subscription makes sense. You can upgrade or downgrade the car or hand it back when you don’t need it.”
Turners chief executive Todd Hunter likes what Collaborate is doing and sees an opportunity in New Zealand.
“I have every confidence the subscription service will work in New Zealand because of the flexibility, and I’d like to think it will be up and running this year,” Hunter told NBR.
The Carly service works with customers selecting a car online and pays the monthly subscription. The payment depends on the value of the car, customer age and driving experience, with prices starting at AUD $115 (NZD $119) a week or $17 (NZD $17.69) a day.
A flexible car subscription is an alternative to leasing or owning a car, says Noone.
“With a lease you are locked in for three or four years and you can’t change your car. If your circumstances change, then it’s expensive to break the lease and hand it back.”
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