This article was first published on PSFK, written by Cynthia Robinson.
Carro launches as Singapore’s first-ever subscription-based car service offering a flat monthly fee and flexible ownership options
Carro, Southeast Asia’s largest automotive marketplace, recently launched a subscription-based car service for the Singapore market. The company devised a flat monthly rate that will enable customer to enjoy the benefits of car ownership without the commitment.
The service’s downpayment-free system means customers can make use of their new car ownership without the worry of annual depreciation and unexpected expenses like raised insurance premiums, roadside assistance and repairs. In addition, customers aren’t required to adhere to the same type of car for the full period of 10 years: They can begin with a compact vehicle, then switch to an SUV or MPV and at the end of the term, return the car.
Consumers can choose from three separate subscription plans: A Daily ($1,199/month), intended to suit individuals or small families; Roomy ($1,499/month), targeted at larger families and those who may want to travel and fit more comfortably; and Fancy ($1,999/month), designed for luxury and sports cars.
The flat monthly fee covers all car ownership costs—insurance, road tax, 24-hour assistance and maintenance, building an inclusive ecosystem that streamlines the automotive experience for consumers. “A typical person takes nearly six years to pay off their car loan,” states Aaron Tan, founder and CEO of Carro. “Two-thirds of them even trade in their vehicle before they’ve paid it off, picking up yet another loan,” highlighting the advantages a car-rental marketplace can offer to the way today’s consumers buy and use vehicles.