Car Subscription; What It Is and Who It’s For

Are you dreading your morning commute with the bus, train or both? Do you find that owning a vehicle is too expensive?

As an immediate alternative, Grab and Go-Jek provides us with a quick and affordable solution. Now, with a few taps on our mobile phones, a ride appears within minutes.

It’s now quick and easy to book a ride. When you compare it to 5 years ago, convenience is an understatement.

Yet, with surge pricing, the constant need to look for the vehicle at the pick-up point, a couple of minutes wait and the occasional small talk with the drivers, ride-hailing applications can be frustrating to some of us.

No matter how convenient ride-hailing is, it’s missing a crucial component to personal transportation – the sense of freedom and control.

We do not feel we have autonomy over what happens. So naturally, ride-hailing leaves us wanting more. 

No doubt, bad traffic is frustrating for all. It’s inevitable; even if we drive. But driving does provide us with a greater sense of control over what happens because we are behind the wheel.

However, driving is no cheap option on this hot and sunny island. Especially the 30% to 40% down payment for purchasing a vehicle can be a significant deterrent for many of us.

Additionally, we might not want to deal with the hassle of servicing and buying/selling a car. 

So the question is – is there a perfect mobility solution? One that grants us freedom and control over our commute without us incurring the burden and commitment of owning a vehicle.

Sounds too good to be true? With Carro’s car subscription service, the perfect mobility solution has arrived. 

What is Car Subscription?

Let’s begin with what this service entails. 

We watch movies/TV shows on Netflix and listen to our favourite tunes through Spotify. Car subscription is the Netflix and Spotify for cars.

Similarly, you pay a fixed and affordable monthly fee for a vehicle. As part of the fee, it comes with road tax, maintenance and insurance.

What this means is that you have neither the hefty 30 to 40% down payment nor the long-term financial commitment to worry about – start and terminate the service to best fit your financial goals.

Now, you can balance your financial goals and personal mobility at will. 

Naturally, this benefits those who do not have enough cash to pay for a down payment and those who need flexibility.

Even if you do have the cash, it might be wise for you to go with car subscription. Which is especially applicable if you are a millennial or an expat.

Here’s why. 

For Millennials, Save for What Matters

As a millennial, we are approaching or have approached the age of financial independence.

Some of us might be considering buying a home or starting a family. These are all important financial decisions, and they require cash, lots of cash.

So, even if we can afford the payment for a vehicle, it might be unwise to do so. A car is always going to be a depreciating asset. In our early twenties and through our thirties, the cash would certainly be better used for housing or investments.

Besides, the initial down payment is just the beginning of your financial headaches. As many of us cannot afford to pay for a vehicle outright, we would have to take out a mid-term car loan and pay monthly instalments. 

This sort of commitment can seriously hinder our financial progress – we direct our income towards paying off monthly instalments instead of devoting them to savings and investments.

Affordable & Commitment-Free Experience

But that’s not the case with car subscription.

It provides you with a commitment-free experience. As you stabilize your career and face uncertainty, this no restriction option gives you the flexibility you need.

Perhaps you are thinking of switching jobs, and you want to be conservative with your expenditure. Simply stop the service. You can reengage the service when you have found your dream job.

Such flexibility gives us freedom. We do not have to bound ourselves to a job we hate to make sure we can pay off our loans.

In a longer-term perspective, it could be what makes the difference in your life. Freedom, with good reason, is one of the most important factors for millennials. Now, you have more freedom with mobility. Let’s use it wisely. 

Also, a bonus you get is the freedom to try out different cars with car subscription. Maybe you are bored with the Vios? Well, you can’t really do anything about that with traditional car ownership unless you are willing to sell and buy a new car. And that takes up a lot of your resources. 

But with car subscription, you can upgrade to a better ride when you fancy a sublime ride.
This ability to change rides every month gives you a fun and exciting experience on top of the flexibility it provides you. 

Drive Here Like How You Would Back Home 

Living in a foreign country can be a very lonesome experience, especially when we have to assimilate to a new culture and way of being. If you are used to driving, adapting to a public transport system might be stressful for you.

You want to drive here. But you might not know how long you want to stay in Singapore. Perhaps it’s dictated by the company you work for. Or maybe you are undecided about your future here. So it might not be worth it for you to purchase a car here.

Additionally, you may have noticed that cars here are way more expensive than in your home country. Since you don’t know how long you’ll be here for, buying a car isn’t a logical choice.

For Expat families, having a car might be a necessity. Even though you need the car for practical reasons, paying a premium for a car is not a financially prudent decision.  

This is why car subscription makes perfect sense for you as an expat. You get to drive and fulfil your family needs without the commitment of owning one. Additionally, you might be unfamiliar in dealing with road tax and insurance in Singapore.

But don’t worry, car subscription takes care of all that for you.

The news gets better if your company provides you with transport allowance package –
utilize it on a top-notch vehicle. 

With a car subscription, you can drive like how you would at home. As you play reminiscing music in your sweet new ride, you might begin to feel that you have found a home away from home.  

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