Pros and cons of car subscriptions: ‘A car is not an asset, it’s a utility’

Pippa Hudson on CapeTalk speaks to Tinashe Ruzane, mobility innovator and CEO of FlexClub about car subscriptions.

Buying a car is not the only way to access to private transport.

For a monthly fee, car subscription services allow customers to access a car when required.

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FlexClub was one of the early players on the scene providing subscribers access to thousands of vehicles.

A positive is you only pay for using the car and don’t need to worry about insurance, maintenance, or other obligations.

It also gives more flexibility as you are not locked into a long-term contract.

“It offers a lot more control over your spending on a car.”

- Tinashe Ruzane, Mobility innovator and CEO of FlexClub

You can also easily swap out cars if your needs change, according to Ruzane.

On the downside, you pay monthly with nothing tangible to show for your investment.

You trust your vehicle is being maintained properly because that is not under your control.

Ruzane says this option is popular among freelancers with inconsistent income, people who travel often for work, and people who struggle with vehicle finance.

He adds that many have found that a car is not worth owning as it is a rapidly decreasing asset.

“The idea of ownership is great in concept but not in practice… it is not an asset it is a utility.”

- Tinashe Ruzane, mobility innovator and CEO of FlexClub

Scroll up to the audio player to listen to the interview.