A brief look at Malaysia’s car subscription plan

Car subscription service is trending in Malaysia. It’s an industry which has seen quite a growth recently. Today, there are various such service providers available in the country; Renault being one of the first carmakers in Malaysia to introduce a subscription service and Flux being the most recent one to hop on board during the end of 2019. So what do these car subscription services offer that they are in such high demands? We try to figure that out and have a brief look at Malaysia’s car subscription market.

Basically, a car subscription service is like a typical phone rental contract. You pay a certain monthly amount to the service provider and avail the benefits for the term of the contract. So, these car subscription service providers thought that when there can be a subscription plan to music, television, and various other media, why not for cars?

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Malaysia's car subscription plan advantages-

A relatively small initial investment

Well, the biggest advantage of a car subscription plan is that you don’t need to invest a huge amount to buy a car, either it’s direct or via a bank as a loan. If you feel like you need a ride, all you have to do is take a car subscription plan as per your requirements, pay the related amount, and drive off.

Good short-term plan

This should prove to be very handy for people who are looking to ‘own’ a car for a short period, say 1-3 years. They don’t need to take the burden and responsibilities of actually owning a car like insurance, maintenance, and road tax. Such duties are taken care of by the car subscription service provider. And once you are done using a particular car, you don’t need to worry about selling it off to get a new one. Just return it to the service provider and sign up for a different one of your choice.

Easily switch cars

These services should also tempt enthusiasts or car lovers who like to switch their rides every now and then. Changing cars frequently isn’t a privilege everyone has. So by opting for a car subscription plan, you can do that. Drive a BMW for some time and then switch to a Kia later on. It all depends on you.

Malaysia's car subscription plan disadvantages-

Not 'your' car

Of course, like everything else in the world, car subscription services also have their own set of disadvantages. To begin with, getting a car under such a service, isn’t actually your ‘own’ car. It doesn’t matter that you drive it to work every day or take your family out on the weekends in it. At the end of the day, that ride of yours is kind of a rental car.

Bad long-term plan

While car subscription services sound like a great proposition for a short term, they aren’t that great in for a long shot. Instead of paying a monthly subscription fee to a company for providing you with a set of wheels, it would be more sensible to use that sum of money to pay the EMI of your car loan which will eventually be cleared off and you still get to keep your car and perhaps sell it off one day to get back at least some percentage of the original amount. In case of a car subscription service, no matter how much money you give for how many years, you don’t own the car.

Mileage limit

Another aspect of car subscription services that we would like to shed light upon is the mileage limit. Although it would depend on each service provider, most of them force a mileage limit which means you can’t drive more than the preset or agreed upon number during the subscription plan. This caps on the limit on how much can you drive the car that you love so much. There could come a time when you have exhausted your mileage limit. So even if you have a beautiful car parked right outside your home, you can’t really take it out for a spin. Thankfully, there’s no such thing as a mileage limit if you have your own car. So, people who like to drive a lot, be aware!

Considering the growing demand for car subscription services, we wouldn’t be surprised to see more players jumping on the same boat. And it might also affect car sales in the country and overall car ownership experience. However, the market could fluctuate at any moment. Having said that, most of the people like to ‘own’ things, assets; which makes us believe nothing can replace the feeling of driving your ‘own’ car.

What do you think about car subscription services in Malaysia? Do let us know in the comments.

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