A complete guide to car subscription services

What is a car subscription?

A car subscription is a flexible way to use a vehicle without owning it. Instead of buying or leasing, you pay a fee for an agreed upon amount of time and that typically covers the car, insurance, maintenance, and roadside assistance.

Subscriptions typically allow you to cancel or swap cars with short notice, making them a convenient option for individuals who want predictable costs and the flexibility to change vehicles without a long-term commitment.

How do car subscription services work?

Each car subscription service revolves around the same principle. For a weekly, monthly, or bi-annual subscription, customers have access to a range of car makes and models.

For example, if you’re heading off to the beach for the weekend, you may want a cool convertible to cruise around in. Back at home, a smaller passenger model may be more practical for your daily commute into the city. If you’re heading interstate on a family road trip, you may request a large SUV to carry all your gear.

While requirements may vary depending on the car subscription service you're availing, some common documents you may need to supply include:

• 100 points of ID (driver's license is a must!)
• Your latest utility bill or lease agreement with your most current address and your name on it
• A few months' worth of bank statements
• Driver history report
• Credit score

How do Australia's top car subscription services compare?

1. Carbar

Dubbed the ‘Netflix for cars,’ Carbar is available for subcriptions or leases across the major cities. 

With Carbar, on a month-by-month basis, customers have access to a range of car models, from Fords and Mazdas to Jaguars and Range Rovers – dropped off at your door.

Des Hang, co-founder and CEO of Carbar, told Savings.com.au that car subscription services like Carbar can help people save money on the rising costs of car ownership.

“A Carbar subscription includes all the hidden costs of car ownership, such as roadside assistance, maintenance, insurance and registration. We’re continually looking at new ways to add value to subscribers too, so you can expect more perks over time," Mr Hang said.

Key features:

• No minimum subscription duration
• Charge of $0.40 per km over the 20,000km allowance
• 24/7 roadside assistance
• Switch or cancel cars with 2 weeks' notice

2. Carly

What sets Carly apart is its marketplace approach. Instead of running a single in-house fleet, Carly connects individuals and businesses to cars from dealers, manufacturers, and fleet partners nationwide. This allows for a broad mix of new and used vehicles.

Carly is one of the few car subscription services in Australia that doesn’t require a deposit or upfront fees. Ongoing costs are limited to the weekly subscription payment, fuel, and tolls, which keep pricing straightforward. The service is available in Sydney, the Central Coast, Melbourne, and Brisbane.

Key features:

• Starts at $203
• 30-day minimum subscription period
• Inclusive of insurance, maintenance, and roadside assistance
• Switch or cancel cars with a 30-day notice

3. Karmo

Karmo offers petrol, hybrid, and electric vehicles with a straightforward subscription model that bundles insurance, registration, servicing, maintenance, and roadside assistance into a weekly fee.

Karmo reported a 500% increase in subscription demand over the past 3 years, citing growing interest in predictable expenses and flexible vehicle options.

Karmo CEO Nick Boucher said the company has focused on offering a smarter, more sustainable alternative to car ownership.

"Customers increasingly want flexibility and want to match their car use to their lifestyle, rather than commit to long-term finance," Mr Boucher said.

They promise an online application that only takes around five minutes and, if a car is available, often drive away the same day. Karmo operates in major Australian cities, including Brisbane, Sydney, Melbourne, Adelaide, and Perth. 

Key features:

• Access to 200+ models from 35+ brands
• New cars only
• Can source vehicles not in stock

4. HelloCars 

HelloCars, Australia’s first fully online car dealership, started offering subscriptions in Sydney to give drivers a flexible alternative to buying. Plans start with a three-month minimum and let you swap cars every 90 days.

You can choose from Economy, Cruise, or Explorer packages, plus the chance to earn a $50 Good Driver Discount for customers with a good driving history. Its premium service also lets you experience a brand-new luxury car without the usual expense, with subscriptions starting at a minimum of six months. 

Key features:

• Starts at $149
• Get on the road in under 48 hours
• Add up to five drivers to your plan for $15/week

5. MotoPool

Motopool is an Australian car subscription service offering flexible plans to suit different driving needs. Subscribers can choose from three tiers: Starter, Value, and Premium, each with weekly kilometre limits of 250 km, 500 km, and 750 km, respectively.

Motopool promises a two-minute online signup, with most subscribers able to drive their new car in under 48 hours. It also features a loyalty program that rewards long-term users, letting you save more the longer you stay subscribed.

Key features:

• 2-month minimum term
• One-off joining fee for non-premium plans of $250
• 24-hour roadside assistance + Motopool concierge

How car subscriptions differ from buying and renting cars

“A car subscription is cheaper than a typical car rental and more flexible and personalised than car sharing. It’s the next best thing to car ownership in terms of gaining access and use of a vehicle,” he said.

Mr Hang said by using a car subscription service, consumers can also escape the hidden ownership cost of car depreciation.

“Essentially, your car loses thousands of dollars in resale value from the minute you drive it out of the lot,” he said.

“They spend tens of thousands on a new car, but only see a return of thousands when they go to sell it.”

“Car ownership is ingrained in Australian culture, so it won’t entirely replace owning a car. Not overnight at least. But the market is shifting in line with global car ownership trends,” Mr Hang said.

Who benefits from a car subscription service?

Mr Hang told Savings.com.au that all kinds of people are using the car subscription service.

“Often, it’s just everyday people who want access to a high-quality car without the servicing fees attached to it,” he said.

“Another example is families that use more than one car. You can own one car, and then have another on subscription, so it gives you the flexibility to only spend on it when you need to.

“We also see a fair few business travellers who need a car for several months but don’t want to pay an exorbitant amount of money in rental fees or taxis.”

Pros and cons of car subscription services

Pros

• You can try before you buy
• Flexibility to change cars according to your lifestyle
• A single payment covers everything - no more to pay rego

Cons

• Just like with renting a house, you can’t make any modifications to the vehicle
• You’re limited to the types of vehicles on offer
• Your subscription may include conditions like limited kilometres and restrictions on additional drivers