SA Motor Lease, a division of Pace Auto Group, has signed up with the FlexClub network to offer long-term car subscriptions, joining other major brands such as Avis, Europcar, Green Motion and Bajaj.
Pace Car Rental is the car rental division within the Pace Auto Group and joined the FlexClub network to offer month-to-month car subscriptions. FlexClub members can use their accounts to shop online for a car that can be delivered within seven days, from a countrywide network of merchants.
Merchants on the network have made more than 40,000 vehicles available to members for subscription, on contracts ranging from one month to 36 months, according to FlexClub.
“By partnering with FlexClub, we’re now able to serve a wider range of customers that want an online shopping experience or are looking for more accessible payment options,” said Grenville Salmon, founder and CEO of Pace Auto Group.
Car subscriptions are continuing to grow rapidly in SA as consumers look for alternatives to the traditional six-year vehicle finance offerings. The long-term subscriptions offered by SA Motor Lease range from six months to 24, at a price that will be cheaper than the month-to-month subscriptions already offered by the group via Pace Car Rental.
The FlexClub accounts enable members to shop for a vehicle, select their preferred subscription terms, arrange delivery and manage their subscription online.
Initially, the long-term car subscriptions from SA Motor Lease will only be available to consumers in Johannesburg and Pretoria, before being rolled out across the country.
Founded in 2018, FlexClub is a technology-backed start-up offering a hybrid of renting and leasing. It allows for a month-to-month change of cars without balloon payments or termination penalties.
The subscription includes insurance, maintenance, roadside assistance and vehicle tracking, and is competitive compared with traditional vehicle financing.
“Market statistics already highlight that the average new car buyer in SA trades in their vehicle after three years, despite the majority of them committing to six-year vehicle finance contracts,” says Papi Melamu, business development executive at FlexClub.
“This mismatch between available products and consumer needs has never been more glaring and we’re starting to see leaders of the largest financial institutions recognise the market readiness for car subscriptions in SA”.