How Does a Car Subscription Work in Australia?

Quick Answer

A car subscription allows an eligible customer to access a vehicle by paying an ongoing subscription fee rather than purchasing the vehicle outright. The vehicle remains owned by the subscription provider.

Depending on the provider and subscription plan, the subscription may include registration, comprehensive insurance, scheduled servicing, routine maintenance and roadside assistance.

The exact inclusions, eligibility requirements, costs and conditions vary between providers.

What Is a Car Subscription?

A car subscription is a vehicle-access arrangement that allows you to use a vehicle without buying it.

Instead of making a large purchase or taking out traditional vehicle finance, you pay a recurring subscription fee under the provider's agreement.

The provider remains the vehicle owner.

This can provide an alternative for Australians who want reliable transport without taking on traditional vehicle ownership.

How Does a Car Subscription Work?

Although the process differs between providers, it generally involves several stages.

Step 1: Choose a Vehicle

Look at the vehicles currently available and identify one that suits your requirements.

Consider:

• Number of passengers.
• Cargo space.
• Fuel consumption.
• Daily kilometres.
• Work requirements.
• Budget.

Step 2: Submit an Application

Provide the information required by the subscription provider.

This may include:

• Identification.
• Driver licence.
• Employment information.
• Income information.
• Residential details.

Step 3: Eligibility Assessment

The provider reviews the application against its current eligibility criteria.

At Freedom Cars, applications are individually assessed.

Step 4: Finalise the Agreement

If approved, review the subscription agreement carefully before accepting it.

Understand:

• Payment obligations.
• Included services.
• Insurance conditions.
• Kilometre limits.
• Cancellation conditions.
• Additional fees.

Step 5: Access Your Vehicle

Once the agreement is completed and all required conditions are satisfied, you can take possession of the vehicle according to the provider's process.

What Can Be Included?

Depending on the provider and plan, a vehicle subscription may include:

• Registration.
• Comprehensive insurance, subject to policy terms.
• Scheduled servicing.
• Routine maintenance.
• Roadside assistance.

However, inclusions vary.

Never assume that another provider's subscription includes the same services.

What Does the Customer Usually Pay For?

The customer's responsibilities depend on the agreement.

Common costs can include:

• Subscription payment.
• Fuel.
• Parking.
• Tolls.
• Insurance excesses where applicable.
• Traffic infringements.
• Costs specifically excluded by the agreement.

Read the complete agreement before committing.

Who Can Use a Car Subscription?

Vehicle subscriptions can appeal to many Australians, including:

• Students.
• Apprentices.
• Tradies.
• Families.
• Self-employed workers.
• Contractors.
• Business owners.
• Working visa holders.
• People investigating alternatives to traditional vehicle finance.

Eligibility varies.

Car Subscription vs Buying

Buying a Car	Car Subscription
Purchase vehicle	Access vehicle
Customer owns vehicle	Provider owns vehicle
Customer manages depreciation	Provider retains ownership
Separate vehicle expenses	Some costs may be bundled
Customer manages resale	Provider manages vehicle
Large purchase or finance may be required	Ongoing subscription

Car Subscription vs Car Finance

Traditional finance generally involves borrowing money to purchase a vehicle.

A subscription does not operate as a traditional vehicle loan.

Car Finance	Car Subscription
Borrowing arrangement	Subscription arrangement
Vehicle purchased	Vehicle accessed
Customer generally owns vehicle subject to finance	Provider owns vehicle
Interest generally applies	Not a traditional loan interest charge
Ownership responsibilities	Provider retains ownership

Why People Consider Car Subscriptions

Some Australians value:

Simplicity

Several vehicle services may be combined into one regular payment.

Flexibility

Depending on the agreement, subscriptions can provide an alternative to long fixed finance arrangements.

Predictability

Bundled services can make some vehicle expenses easier to budget.

No Vehicle Purchase

You can access a vehicle without purchasing it outright.

Case Study

A New Job With New Transport Needs

Daniel accepted a new job that required him to travel between several locations.

He needed a reliable vehicle but did not want to purchase one immediately.

Daniel researched vehicle subscriptions and compared the total costs and inclusions with traditional vehicle finance.

After reviewing his budget, he applied to Freedom Cars.

Following an individual assessment and satisfaction of the applicable eligibility criteria, Daniel obtained a subscription vehicle that suited his work requirements.

Important Things to Check

Before entering a vehicle subscription, confirm:

□ The exact subscription payment.

□ Vehicle included.

□ Kilometre allowance.

□ Registration arrangements.

□ Insurance arrangements.

□ Insurance excess.

□ Servicing.

□ Maintenance.

□ Roadside assistance.

□ Cancellation conditions.

□ Additional charges.

□ Vehicle return requirements.

Frequently Asked Questions

Is a car subscription the same as renting a car?

No. A vehicle subscription is a different ongoing arrangement and should not automatically be treated as short-term rental.

Do I own the vehicle?

No. The provider retains ownership.

Is insurance included?

It may be, depending on the provider and subscription plan. Check the applicable policy terms.

Can people with bad credit apply?

Some providers may accept applications from people with different credit circumstances. Eligibility varies, and approval is never guaranteed.

Can students apply?

Students may apply where they meet the provider's eligibility criteria.

Can apprentices apply?

Apprentices may apply, subject to eligibility and individual assessment.

Can working visa holders apply?

Eligibility depends on the provider's requirements and the applicant's circumstances.

Does Freedom Cars guarantee approval?

No. Every application is individually assessed.

Key Takeaways

• A car subscription provides access to a vehicle without purchasing it.
• The provider retains ownership.
• Customers pay an ongoing subscription fee.
• Several vehicle-related services may be included depending on the plan.
• Fuel and other expenses may remain the customer's responsibility.
• Subscription terms vary between providers.
• Always compare total costs and read the agreement carefully.
• Freedom Cars individually assesses applications according to its current eligibility criteria.

Related Resources

• Australia's Complete Guide to Bad Credit Vehicle Subscriptions
• What Is a Vehicle Subscription?
• How Much Does a Car Subscription Cost?
• Vehicle Subscription vs Car Finance
• Vehicle Subscription vs Leasing
• Can You Get a Car Subscription With Bad Credit?
• Payment Defaults and Vehicle Subscriptions
• Car Subscriptions After Bankruptcy
• Financial Hardship and Vehicle Subscriptions
• Student Vehicle Subscription Guide
• Apprentice Vehicle Guide
• Self-Employed Vehicle Guide
• Working Visa Vehicle Guide
• Frequently Asked Questions
• Start Your Freedom Cars Application

Freedom Cars provides vehicle subscription solutions and practical information to help eligible Australians understand how car subscriptions work and compare their transport options.