Are you a business looking to get a car for your company? 

Typically you would go to a bank and buy a car via a hire-purchase loan, but now there’s a new alternative where your business can access a fleet of company cars via a car subscription service.

You might be asking yourself: Why do we need an alternative to a car loan?

Buying a fleet of cars through a hire-purchase loan can be challenging. 

Your business may not have the cash flow needed for the upfront downpayment. You may not have the headcount or expertise required to manage the fleet effectively. Finally, there are always unwanted surprise expenses throughout ownership - maintenance, damage repair and parts replacement due to wear and tear.

This is why many Malaysian business owners would consider car subscriptions to meet their company car needs. In an online survey with over 2,200 respondents, it was found that the majority of Malaysians (48.61%) are open to car subscription/leasing, if the price is right. 

WHAT IS A CAR SUBSCRIPTION

A car subscription is a service where you pay a fixed monthly fee for the right to use one or more vehicles for as short as 1 month or as long as 5 years. Car subscriptions are typically all-inclusive where the recurring fee you pay covers the insurance, road tax, maintenance and wear & tear.

The upfront costs for a car subscription are significantly lower than a car loan, reducing the financial barriers of getting a car. In some cases, you can get a more expensive car via subscription than a loan. 

But there are mileage limits when subscribing to a car and throughout the subscription tenure, your company does not own the car and only has the right to use it. 

However, most car subscription companies allow you to swap cars when your needs change. This allows your business to refresh your fleet more frequently, reducing the switching costs in the process.

There are several trade-offs between a loan and a subscription. Let’s take a deeper look at car subscriptions and if it is right for your company.

KEY BENEFITS OF A CAR SUBSCRIPTION

1) Save Cash Flow Upfront

With no downpayment required, a car subscription is one way to save money upfront. You can cut expenses and focus on investing in growing your business instead. Your business can save between 25-40% in cash flow in the first year.

2) No Surprise Expenses

A car subscription is an all-inclusive fixed monthly expense. Your business won't incur unplanned expenses such as maintenance costs or tyre replacements as it's included in the subscription. Now you can plan all your car-related expenses accordingly, giving you greater control over your business' finances.

3) Outsource the Administrative Work

A good car subscription service includes a door-to-door concierge service to handle all the administration and maintenance of the car, on top of doing all the document renewals on your behalf. You won't need to hire additional headcounts to manage your company cars.

4) The Right Car At The Right Time

With a car subscription, you can swap cars so that you have the right car that matches your business needs throughout your tenure. You can easily downgrade your fleet to match your budget if you need to cut costs. This gives you ultimate flexibility, thus minimising potential losses.

5) Maximise Your Tax Savings

A car subscription is an LHDN tax-deductible expense that can give higher tax savings for your business. Depending on the cars your business is considering, you can save between 25%-56% in tax deductions.

WHEN A CAR SUBSCRIPTION DOESN'T WORK

1) Unpredictable Mileage Usage

Subscriptions have a mileage cap, and there are usually extra charges if you go beyond the limit. If you can’t estimate the mileage you need, you may incur incidental costs through excess mileage fees.

2) Lots of Cash To Spare

If you have the capital to purchase the car with cash, then you won’t fully benefit from the upfront cash flow savings a subscription can give to you.

3) You Keep Your Cars For More Than 6 years

If your company tends to buy and own the car for 6 years or longer, then subscriptions might not be you. After the loan tenure ends, you no longer need to pay the monthly instalments, but with a subscription, you do.

If you’ve read this far, you may wonder which subscription services are available in Malaysia…

Introducing FLUX: Malaysia's #1 Company Car Subscription

FLUX is Malaysia’s first car subscription platform, offering FLUX Business Class, a subscription service designed to help businesses save time and money on company cars.

WHY CHOOSE FLUX

1) Widest Selection Of Cars

FLUX offers subscriptions for new and pre-owned cars for both petrol and EV formats. You can find the perfect car that fits your budget - everything from a Perodua Axia to a Rolls-Royce Ghost.

2) Truly All-Inclusive

Not all car subscriptions are made equal - it is important to read the fine print of what costs are covered. The good news is that FLUX truly covers all aspects of the vehicle's maintenance and wear & tear.

3) Hassle-Free Concierge Service

FLUX offers a door-to-door concierge service to handle your fleet management - everything from scheduling service appointments, and renewals of insurance to sending your cars for maintenance. Outsource the administration and enjoy hassle-free “ownership”.

How to subscribe to FLUX Business Class

Discover how FLUX can help your business save time and money, get a customised quote at www.driveflux.com/business, or reach out to their friendly customer service at 

• Contact number: 03-6411 5611
• Email: support@driveflux.com
• Whatsapp: +60 17 708 8070
• Working hours: Mondays - Fridays from 9am - 6pm, excluding Saturdays, Sundays and Public Holidays for Wilayah Persekutuan.

FLUX is currently only available in West Malaysia.