The future of car ownership in Malaysia
Car subscription service is for Malaysians who want this flexibility and convenience but who do not want its associated debt and maintenance burden.
A CAR is probably the second most expensive asset that a household purchases. It is, however, a depreciating asset.
From a financial perspective, when buying a car an individual needs to take into account the total cost of ownership.
And yet for so many Malaysians today, access to mobility is to enter into a debt for the acquisition of such an asset. This is because there aren’t many competitively priced alternatives in the market.
As a result, this financial burden falls upon the household.
Although the debt to gross domestic product ratio of households has continued to decline over the recent few years, it is still elevated relative to our regional neighbours. What is needed is a financial product that delivers the benefits of having a car in your driveway, without the debt burden.
A car subscription provides exactly that.
A true car subscription empowers consumers to have greater control with greater flexibility when managing their personal finances with respect to their car.
During periods of financial hardship, a car subscription enables consumers to swap out of their existing car subscription to something more economical. Conversely, when times are good, consumers can upgrade their car according to their preference.
Flux is a car subscription technology startup in Malaysia that provides this service.
It is an all-inclusive monthly car subscription service that involves a simple flat fee, which covers the insurance, road tax and maintenance. Zero downpayment with no hidden charges. We believe transparency is key.
Consumers can switch cars as their needs change.
Car subscription service is for Malaysians who want this flexibility and convenience but who do not want its associated debt and maintenance burden.
Expatriates are another segment of potential consumers who will benefit from the service. Usually on contract in Malaysia for three to five years, expatriates no longer need to go through the hassle of buying and selling a car.
With Flux, they will be able to activate and terminate the subscription seamlessly.
Companies can also capitalise on a service like Flux. Corporations no longer need to purchase a fleet of cars and have the depreciation hit their balance sheet. With this service, companies can outsource the fleet management to a specialist with flexible contract terms and pricing.
Again this flexibility gives businesses greater agility when dealing with economic cycles.
While Flux serves the people, it also has the potential to serve Malaysia. The service aspires to leverage on technology to create safer roads with lower drivingrelated incidents.
Using data through vehicular telematics installed in all our cars, the aim is to incentivise better driving behaviour.
Nevertheless, in the event of an acccident, the device immediately dispatches emergency services to the location to render assistance.
Flux offers more than just cars, but mobility as a service, working collaboratively with innovative automotive retailers who share this vision of the future of mobility. The way that car ownership is viewed is changing. Consumers want greater flexibility and convenience.
The automotive industry needs to adapt and evolve to leverage on cutting-edge technology that enables inventory to become more productive.
Fleet management can become more efficient at generating financial returns.
By no means will traditional car ownership become obsolete. But in a future that points towards a world where consumers can enjoy choice with flexibility, car subscriptions present an exciting opportunity for innovation in this evolution.
The writer was part of the pioneering team to establish Flux, registered in January 2018, prior to being appointed to any other position. She viewed Flux as an exciting proposition that leveraged disruptive technology to provide an innovative solution in the mobility space.