Say Goodbye to Loan and Lease Hassles: Choose a Car Subscription Service for Transportation on Your Terms

In a Nutshell: Consumers accept the inconvenience of owning a car because they need transportation at a moment’s notice. But the inflexibility and financial hurdles of auto leasing and financing can be dealbreakers for some people. That’s why Carly is making inroads in the emerging market for car subscriptions in Australia. Drivers who subscribe to cars through Carly choose and switch vehicles as if they were streaming services.

Times and lifestyles have changed for many since the COVID-19 pandemic taught managers and workers that they didn’t always have to be in the same room.

Indeed, COVID may be why more consumers are realizing that the conveniences of car ownership come with consequences even when they’re regularly driving to and from the office like in olden times.

Increasingly, people dealing with short-term life arrangements — contract workers on location, digital nomads, executives, and others — question why they should accept the insurance and maintenance responsibilities (and the financial strictures) of traditional car ownership.

Others realize that what they need out of an auto may change with the seasons or as family members come and go. In these more dynamic modern scenarios, renting a car for a few days doesn’t make any more sense than owning or leasing one and is probably even less convenient.

Between short-term rentals on one side and long-term financing or leasing on the other, Carly sits in the middle as a cost-effective alternative for those interested in accessing the car they want when they want it. CEO Chris Noone said Carly’s growth since its founding in 2019 shows that car subscriptions are an apt solution for the times.

“Our use case is any person or business that needs access to a quality vehicle but doesn’t want a long-term financial commitment,” Noone said. “If you find you no longer need your vehicle or your financial circumstances have changed, you can give us 30 days’ notice to return the car, and we all walk away friends.”

It took us a few minutes to wrap our brains around the concept, but once we did, we realized the substantial advantage a car subscription could have over purchasing or leasing. Carly is available to Australians in the Sydney, Central Coast, Melbourne, and Brisbane areas. If that’s not you, use this article to point you toward a similar service in your neck of the woods.

“Get the car you want that is absolutely perfect for your needs right now,” Noone said. “And if those needs change, change the car.”

We’re impressed with Noone’s frankness regarding Carly’s suitability in the market. He said company data shows it’s much cheaper to subscribe to a car —  rather than to finance or lease — for periods of up to about 18 months. It’s undoubtedly cheaper than breaking a finance or lease agreement within the same time frame.

“That year and a half mark is a real sort of tipping point,” Noone said.

However, those who intend to own their vehicles for more than 18 months may still consider themselves at a disadvantage when they consider the potential financial downsides of buying and selling. They also must take into account costs separate from those associated with maintenance and insurance, which can be considerable.

First, they accept the often extremely time-consuming hassle of choosing a car among many competing for their attention and hoping they find the best deal at the best rate.

Then, they accept the hassle of getting rid of it when it’s time to move on. The break costs we referred to above — associated with many finance agreements — can make or break a deal.

Plus, everybody knows that cars begin to depreciate as soon as you move them off the lot. It’s a straight-up losing proposition to buy and sell when time is a factor.

“It’s when you need the car that’s important,” Noone said. “Many people now have much more flexible lives where they’re working in a certain job in a certain location for a few months and then in a different role in a different location at other times.”

To illustrate, Noone said many Carly customers are contract workers who benefit from car access on location but don’t need an extra one sitting around when they get back home.

Then, their next location may have excellent access to public transportation. The desirability and availability of transportation solutions change with location and circumstance. Carly is along for the ride to help when needed.

“People love the idea of a subscription when they realize they pay zero when they don’t need a vehicle,” Noone said. “Car owners still pay for insurance, maintenance, and registration even when their vehicle’s sitting in the driveway.”

Netflix, Spotify, and all the other media subscription services we love the world over have evolved to cope with what industry pundits refer to as churn.

For example, if what Aussies call footy is your thing, you might subscribe to a video streamer to watch the games but opt out during the off-season. Or, you might save up Netflix shows to binge-watch for a month or two but choose to keep that subscription fee in your pocket for the rest of the year.

That type of off-and-on behavior works for some but not for others. You know who you are if it does. The bottom line is Carly brings that option to what we should probably call car “users” as opposed to owners or renters.

“It’s as simple as giving that 30 days’ notice and talking to our customer service team,” Noone said. “We’ll make sure we find you the right new car.”

Carly offers three plans to help “users” make the switch. Change your car once a month on the Entry and Medium plans and twice monthly on the Large plan.

Family holiday gatherings are a prime season for vehicle switches, where an everyday sedan moves aside in favor of an SUV capable of seating extra children and grandparents. COVID may have ushered in the realization that today’s car owners have more complex needs, but hindsight is 20/20 regarding an issue with an extended pedigree. It just took consumers — aided by creative entrepreneurs like Noone — a while to catch up.

Carly makes it easy by including maintenance and servicing in the weekly subscription fee. All vehicles receive service according to the manufacturer’s instructions. Carly also provides roadside assistance. Cars receive repairs at no cost to the customer.

You can change cars on a dime, as the Americans say.

“You could earn a bonus and say, great, I’ll treat myself to a better car for a few months,” Noone said. “Or, you could suddenly decide to save some money and opt for a smaller, cheaper vehicle than the one you’ve been driving.”

Carly pays the utmost attention to customer feedback, as one would expect. In fact, customer demand led Carly down the road to an EV fleet. In the process of meeting customer needs, Carly proves another use case for cleaner, greener transportation.

Noone said some particularly tech-savvy Carly customers have been happy to be early adopters and get into EVs right away. The majority, however, are fence-sitters.

“They’re saying they think it makes sense to get an EV but don’t know how much they’ll enjoy the vehicle or whether there will be difficulties in operating and charging it,” Noone said.

It turns out that saving money and acting on behalf of a cleaner environment is a compelling lure when part of a car subscription. Carly’s EV Trial product allows people to experiment with the electric lifestyle before they buy.

It’s a validation of the notion that real-world experience with a vehicle “in the wild,” so to speak, allows you to answer questions you didn’t even know to ask.

Carly doesn’t mind acknowledging it has helped some customers get into EV ownership. Others turn to Carly’s short-term model to deal with the quick pace of industry progress.

“It is a different way of fueling and maintaining a vehicle, and there are pros and cons,” Noone said. “It can be a much bigger transition than people think.”

Meanwhile, Carly continues to add vehicles to a service that advertises itself as providing cars for everyone. Along with EVs, Carly provides subcompact hatchbacks for tooling around, versatile SUVs, and luxury sedans that put customers in familiar surroundings.

Vehicle discovery is as seamless as picking a new program to binge-watch on Netflix. Regardless of your credit history, it’s just a matter of choosing between several equally good options.

“If you want the red SUV with the black wheels, that’s the car you’ll get,” Noone said.