Avoiding the dangers of financing with balloon payments through flexible car subscriptions

Avoiding the dangers of financing with balloon payments through flexible car subscriptions

The pandemic has had a devastating effect on people’s lives, jobs, and finances, savvy customers are opting not to be locked into traditional car finance with balloon payments offered by banks and other financial institutions. Instead, people are considering more flexible solutions such as car subscriptions to tailor their vehicle needs to their lifestyle and financial situation.   

Recently launched FlexClub, a car subscription marketplace offers customers a variety of cars for a flexible monthly feel, with an experience that is fully digital, simple and convenient. In just a few clicks, members can order their car and have it delivered to their door. 

FlexClub has partnered with reputable brands such as Avis, Barloworld, Europcar and Motus, to offer car subscriptions to its members. 

What is a car subscription?

A car subscription is a flexible all-inclusive monthly subscription to access a new lower mileage vehicle, without the need to purchase an additional maintenance plan, roadside assistance service or insurance, as all of the risks are covered in the monthly price. While car subscription prices might appear higher at face value, consumers should remember that they are all-inclusive. Financing the same model of car, along with the insurance premiums, maintenance plan, roadside assistance and vehicle tracking, will all add up to a total cost that is comparable to a car subscription, without the flexibility.

“With a car subscription, customers have no obligation to buy the car or to keep it longer than they want or need it for, which allows for a myriad of use cases. For instance, someone who is looking to purchase a new vehicle for their family, but cannot decide between an MPV or SUV can subscribe to such a vehicle for a month before trialing the next one the following month to make up their minds,” explains Tinashe Ruzane, CEO and Co-Founder of FlexClub.

Car subscription for all needs and budgets

Furthermore, people who just don’t want to finance a vehicle using balloon payments, but rather want the flexibility to change their car when and how it suits them, will like the car subscription offering. They can for instance opt for a perfectly practical family sedan, but if they are promoted or their side-gig turns into a fully-fledged business, they can choose a luxury sedan or SUV for a month or two as a spoil for themselves and their loved ones.

“FlexClub is pioneering the most flexible way to get a car and we are backed by leading technology investors Kindred Ventures, to change how people shop for cars. The FlexClub marketplace also offers members the ability to earn valuable rewards over time, based on their driving behaviour. Members can redeem these points in a variety of ways, including by making future subscription payments cheaper,” concludes Ruzane.