Subscription based ‘ownership’ on the march

SUBSCRIPTION based ‘car ownership’ could be an attractive alternative to leasing, financing or traditional ownership of a vehicle following a new scheme introduced by Kinto, a ‘car rental’ firm owned by Toyota.

The business, which may bolster Toyota sales, has introduced a new, app-based car subscription offer called Kinto Flex that it says may appeal to “commitment phobes”.

To clarify, car subscriptions provide cars to users who pay a monthly duration fee plus a per-kilometre fee that is inclusive of fuel, insurance, 24/7 roadside assistance, maintenance, and servicing.

Users can book, unlock and drive a selected vehicle for times varying from one hour through to a year.

A subscription to Kinto Flex starts from $1215 per month and $0.17 per kilometre travelled. There is no sign-up fee, establishment fees or security bond required.

In essence, Kinto Flex provides an all-inclusive car rental plan which offers customers the benefits of car ownership, without the long-term commitment. The company says their new subscription plan delivers affordability, flexibility, safety and sustainability.

It provides customers the option of booking a car to suit most needs across a network exceeding 160 national (Australian) locations.

Kinto says it has created a car service that “truly adapts’ to the user’s lifestyle allowing them to shorten or lengthen the subscription and pay by the month”.

In relation to sustainability, the company says Kinto Flex “is powered by a fleet of trusted Toyota cars, and with a passenger fleet consisting of over 97 per cent hybrid vehicles”.

The scheme is available nationwide and applies to a variety of Toyota models from small hatchbacks for city errands through to an SUV for the family. Users can drive as little or as much as needed with no excess kilometres or additional driver fees as is the case with traditional car rental firms.

All aspects of the service are managed through Kinto’s purpose-built smartphone app from sign-up and collecting a vehicle, to unlocking the car and hitting the road. The entire process is digitalised and self-service.

Users can extend their subscription through the digital self-service function within the Kinto app and on the other side of the equation, they can easily unsubscribe from Kinto Flex…. cancel free of charge from the upcoming bill cycle with seven days’ notice.

“We believe that everyone deserves the freedom to move, so we’re thrilled to be expanding Kinto’s local offering and now offer Australians a car subscription that adapts to their lifestyle,” said Kinto general manager Mark Ramsay.

“We’ve seen the demand for short term and flexible mobility increase, and Kinto Flex is the nation’s answer to those who want all the benefits of car ownership for those who may not want to take the leap yet into purchasing their own vehicle.

“There is no one-size-fits-all to travel, that’s why we prioritise flexibility and are creating a service that aims to fit into the lifestyle of our customers, not the other way round. Kinto Flex allows users to drive some of the latest cars without any long-term commitment, and the flexibility to adapt to their lifestyle, and we hope the Australians love Kinto Flex as much as we do.”

Toyota Australia Vice President Sales, Marketing and Franchise Operations Sean Hanley said the expansion of Kinto’s services will offer consumers even greater freedom and flexibility.

“The introduction of Kinto Flex offers Australians the next best thing to vehicle ownership, as it is simple and easy to drive the latest Toyota vehicles, including our popular hybrid models, for a longer-term period with a monthly subscription,” said Mr Hanley.

“Kinto Flex marks an exciting step in the future of mobility. It caters to emerging customer needs and mobility requirements that go beyond our traditional business model, giving people the freedom to move and providing a new transport-related service across Australia.”