FlexClub launches pay-as-you-go car rental in South Africa

25 July 2024 - 09:47
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FlexClub has introduced a pay as you go vehicle network giving consumers access to more than 20,000 vehicles.
FlexClub has introduced a pay as you go vehicle network giving consumers access to more than 20,000 vehicles.
Image: Llama

Car subscriptions keep growing in South Africa as consumers look for alternatives to traditional vehicle finance.  

FlexClub, which offers a hybrid of renting and leasing, has announced a pay-as-you-go vehicle network in partnership with fleet brands such as Avis and Budget Car Rental, giving consumers access to more than 20,000 vehicles.

Founded in 2018, FlexClub allows a month to month change of cars without balloon payments or termination penalties. The subscription includes insurance, maintenance, roadside assistance and vehicle tracking.

The flexible car lease plan allows uers to manage their car access with the simplicity of pay-as-you-go cellular plans.
The flexible car lease plan allows uers to manage their car access with the simplicity of  pay-as-you-go cellular plans.
Image: Supplied

Pay-as-you-go car plans are similar to pay-as-you-go cellular plans, allowing users to manage their monthly spend by topping up their account based on their usage needs without being locked into long-term commitments. It is designed to cater to a broader range of customers, including those with varied credit profiles and car needs, according to FlexClub.

“To build a pay-as-you-go car plan, one needs to select one's preferred vehicle, choose when the plan should start, how long it should run and where to collect the car. No old cars, no rigid contracts, no balloon payments and you can get the car in 24 hours,” said FlexClub CEO and co-founder Tinashe Ruzane.

“The inclusion of Avis and Budget Car rental vehicles in the fleet network guarantees vehicles in the fleet network are roadworthy and reliable.”

The sign-up requires no approvals or Financial Intelligence Centre Act registration. Users can select from a variety of the latest vehicle models and a pay-as-you-go car plan is available for a duration of one to 48 months. Vehicles can be collected from more than 70 locations in South Africa.

Ruzane said pay-as-you-go car plans eliminated the admin-intensive approval process that comes with vehicle finance or rent to own contracts and allowed plans to be cancelled at any time. The offering is particularly suited to users without extensive credit and financial profiles, including new graduates and credit-impaired customers. 

It is also aimed at consumers preferring to avoid the commitment of traditional vehicle finance and travellers or expats needing temporary vehicle access for more than a month.


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