Subscribe to Own by Flux
Flux, Malaysia’s truly multi-brand car subscription service, launches Subscribe to Own, a new product that makes a consumer’s path to car ownership simple, seamless, and financially accessible. Flux offers an all-inclusive service where by not only do you get a car, but Flux also covers the insurance, road tax, maintenance, and wear & tear. Flux even provides a concierge service to handle the administrative chores, so that you can simply enjoy the drive.
Flux’s Subscribe to Own ofering allows you to initially subscribe to a new or pre-owned car from the Flux collection with the option to purchase it at the end of your subscription. You can enjoy all the benefits of the standard Flux service, but with this new product, your monthly subscription payments can now also contribute towards the option to purchase the car.
HOW IT WORKS
Flux’s Subscribe to Own works much like the Flux that consumers are familiar with. Consumers choose their subscription plan (12, 24, or 36-months) and mileage package (1,250KM, 2,000KM or uncapped mileage per month) for a particular car. Based upon the car and subscription plan selected, Flux sets a unique Guaranteed Future Value 1 (GFV) for which you can purchase the car at the end of the subscription period (i.e. the shorter the subscription, the higher the GFV). Do note, Flux does offer a Month-to-month subscription plan (i.e. pay as you go) for greatest flexibility without the Subscribe to Own option.
1 GFV: The guaranteed price that a Flux member can purchase the car for, at the end of their subscription.
The GFV is predetermined and transparently displayed online during the checkout process. There will, therefore, be no need for the hassle of negotiations. You will have until 30 days prior to the end of your subscription before deciding to exercise the purchase option, which will give you maximum flexibility.
Flux’s GFV includes the processing fees for the transfer of ownership (i.e. Puspakom & JPJ), but excludes road tax and allows you the option to purchase the insurance of your liking. As always, Flux’s concierge will handle the entire process so that you can just sit back, relax, and wait for your newly purchased car to be delivered to your doorstep.
On top of the flexibility and convenience, there are several financial benefits to choosing Subscribe to Own when buying your next car.
■ LOWER UPFRONT FEES
When subscribing to own with Flux, you no longer need to pay a downpayment as you would with a car loan. Instead, Flux charges a start fee, which is at least 50% lower than the average downpayment. This helps to ease your cash- flow in your first year of ‘ownership’.
50% lower than the average downpayment.
■ NO SURPRISE EXPENSES
With Flux, maintenance, and wear and tear costs are included in your one simple subscription fee. As such, you will no longer get surprise expenses such as replacing tyres or brake pads. This gives you better visibility and opportunity for effective financial management.
■ PROTECT YOUR CREDIT SCORE
A Flux subscription does not impact your credit score. You are thus able to maximise your credit resources towards buying the home that you truly want. This is perfect for first time home buyers who have yet to build a credit history.
■ AVOID RESIDUAL VALUE LOSSES
Depreciation on a car is wildly unpredictable and will depend on various factors outside an individual’s control. Mitigate the risk of variable market prices with Flux’s GFV, and enjoy the full transparency of the value of your car at the end of your subscription.
■ NEVER GET STUCK WITH A LEMON
All Flux cars are independently inspected to ensure that you will receive only the best quality. With Flux’s 3-day Risk-Free Return policy, you can switch out your Flux car at the start of your subscription so that you will never be stuck with a bad car.
■ SWITCH YOUR CAR TO FIT YOUR BUDGET
With a Flux subscription, you will always have the option to switch cars as your needs evolve or budget changes. When times are tough, downgrade to a more economical compact car. In good times, you can enjoy life with a luxury coupe. Adjust your car expenses according to your budget.
SUBSCRIBE TO OWN VS. CAR LOAN
Let’s take a look at the numbers and see how Subscribe to Own compares to a 5-year car loan. Below shows a price comparison between buying a new Honda HR-V E (RRP = RM108,800) and acquiring the car via Subscribe to Own by Flux. The analysis shows a consumer’s total spend via a 5-year loan (3% interest rate) and the Flux 36 Months Standard subscription, with a GFV which the Flux member can purchase the vehicle for, after the 36-month period.
Save up to 33% on your first year’s total spend.
After the 36-months subscription period, Flux members have the option to purchase the car based upon the predetermined GFV. With the Flux GFV, members can mitigate the risk of market price fluctuations. This Honda HR-V example shows that currently, Flux’s GFV is 9% below forecasted market prices.
2 Comprehensive insurance inclusive of special peril and windshield coverage
3 Source: Authorised Honda Service Center and Independent Workshops
In order to make this directly comparable, the analysis benchmarks the total cost of ownership for the first 3 years, as the 4th and 5th year are identical for both options. For the Flux costing, interest charges have been included when purchasing the car after the 3rd year.
4 Source: Analysis of Carlist Malaysia
* = Annualised ownership costs multiplied by 3. Insurance cost for Y2 and Y3 is based on NCD 25% and 30% respectively
With Subscribe to Own by Flux, consumers pay 6% more than the traditional car loan. This translates to RM131 extra per month across the 5 year period. But with this premium, Flux consumers pay 58% lower upfront fees and enjoy the following benefits:
SUBSCRIBE TO OWN BY FLUX IS PERFECT FOR YOU
Flux offers flexibility in financing your car with unmatched convenience and utility. One subscription offers access to all of our cars, without long term commitment or financial rigidity. A service like Flux is perfect for home buyers looking to maximize their credit, ex-pats who find it difficult to get a car loan, business owners who want to manage their cash flow in the early years, or financially astute consumers who want greater flexibility in their car expenses.
Ultimately, Subscribe to Own by Flux is the best alternative to the car loan. One that offers simplicity, flexibility, convenience, and a lower financial barrier to ownership.
NOTE FROM THE FOUNDER & CEO
“In today’s current economic climate, consumers need to have better visibility and control of their financial management. Especially when it comes to big-ticket purchases such as a car. Subscribe to Own by Flux not only allows you to better manage your car expenses, but it also lowers the barrier to entry for car ownership.
With Flux, gone are the days where you have to spend tens of thousands of Ringgit on a 10% to 20% downpayment. Instead, consumers spend a fraction upfront via a Flux subscription and can still own the car at the end of the day. This new financial product allows car buyers to spread their expenditure more evenly across the ownership journey, whilst still having the flexibility to decide on owning the car in the long-run. Why lock yourself in a long-term, rigid financial commitment, when you can enjoy the freedom of choice and lower upfront fees with Flux,” said Aziz Ayman, Founder & CEO of Flux.