The new Turners Subscription service, which initially launched in Auckland, is being powered by the platform and systems pioneered and developed in Australia by Carly; a division of listed Collaborate Corp.
Turners says it believes that car subscription “will play a big part in the future of mobility.” It plans to expand the service across various NZ cities, eventually making car subscription available to all New Zealanders.
Carly, a leading Australian car subscription service, is providing Turners with its online car subscription platform under a licensing agreement. In July last year, as part of the agreement, Turners made a $1 million strategic investment in Carly.
Turners Automotive Group is one of New Zealand’s most well-known automotive and finance players and is the country’s largest seller of cars.
Under the deal with Turners, the implementation of which was delayed by Covid-19 restrictions, Carly will generate income from a platform licence fee based on subscription revenue, from custom technology development and from the provision of customer service assistance to Turners Subscription operations.
Turners Automotive Group CEO Todd Hunter said in a statement: “Turners Subscription is about offering flexibility and convenience to New Zealand drivers.
“We really liked the industry-inclusive approach Carly has taken in Australia, which we have mirrored by offering consumers an alternative to a loan or finance, while creating a new and recurring revenue stream that can acquire customers online and at the dealership.”
Carly CEO Chris Noone said in a statement: “Car subscription is growing rapidly in the Australian market. Our figures show that Australians are increasingly interested in car subscription, with a 64 per cent increase in Subscription Transaction Value September 2020 vs June 2020 Quarter and 218 per cent increase September 2020 vs September 2019 Quarter.”
Recent research undertaken with Omnipoll found that as many as 38 per cent of Australians would now consider subscribing to a car rather than purchasing or financing a vehicle.
“This shift in consumer preferences towards flexible car access is on a rapid trajectory in Australia as the conventional wisdom of long-term car ownership is fast losing ground,” Mr Noone said.
“A similar shift toward car subscription is expected in New Zealand as spending big on material possessions like cars – or taking out loans to eventually own them – is increasingly being viewed as a risky move by consumers.
“As restrictions ease, Kiwis will be looking to get out and about in the ideal car and many will see the advantage of avoiding long term financial commitments. Turners Subscription offers the flexibility of being able to access a vehicle to suit their travel and lifestyle requirements,” Mr Noone said.
Like the Carly model, Turners Subscription offers consumers flexible access to a car, with the cost of registration, insurance, maintenance and roadside assistance included – customers just need to add fuel.
Subscriptions can be stopped with 30 days’ notice without any financial penalty and there is no upfront deposit. Subscribers have the option to switch cars monthly, depending on their changing lifestyle and needs, and can choose from a range of vehicles; from economy hatches through to SUVs and even electric vehicles.
“We are really excited to be powering Turners Subscription in New Zealand. Just as Australians have responded to Carly’s service, we believe Kiwis will embrace it too, as they discover car subscription is an easier, low-risk alternative to car ownership,” Mr Noone said
“It’s a smart lifestyle choice that affords them the freedom to change vehicles to suit their needs and to pause or stop the subscription as determined by their personal financial circumstances.”
By John Mellor