KUALA LUMPUR, Oct 22 -- Flux, an all-inclusive monthly car subscription service, is set to change traditional car ownership by offering consumers greater flexibility when managing personal finances with respect to their car.
The car subscription technology startup in Malaysia, founded in 2018 by Aziz Ayman and Tan Sri Dr Zeti Akhtar Aziz, involves a simple flat fee, which covers the insurance, road tax and maintenance, as well as zero down payment, with no hidden charges.
In a statement, Zeti said a car is probably the second most expensive asset that a household purchases despite being a depreciating asset and an individual needs to take into account the total cost of ownership.
“For so many Malaysians today, access to mobility is to enter into a debt for the acquisition of such an asset because there are not many competitively priced alternatives in the market. 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,” she said.
Besides individuals, expatriates are another segment of potential consumers who would benefit from the service Flux offers as they would no longer need to go through the hassle of buying and selling a car during their service in the country.
Zeti said companies could also capitalise on a service like Flux as they would no longer need to purchase a fleet of cars and have the depreciation hit their balance sheet as they could outsource the fleet management to a specialist with flexible contract terms and pricing.
“Flux works 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,” she added.