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Carbar launches car subscription service in Sydney


Man in car handed keys

The startup is Australia's first car subscription service.

Melbourne-based car subscription service Carbar has arrived in Sydney, its first expansion outside of Victoria. Dubbed the "Netflix for cars", the service originally launched in Melbourne in August last year, and plans to expand across the rest of the country.

The car subscription model is emerging as a legitimate alternative to traditional car ownership, with global combustion engine new car sales continuing to decline, and the changing needs of consumers making a subscription service an attractive option. Manufacturers such as Volvo, Toyota and BMW have even launched their own subscription services in the last year.

Des Hang, co-founder and CEO of Carbar, says the cost of car ownership has made a car subscription service an attractive option for many Australians. "According to the 2016 Census, over 80 per cent of Greater Sydney households own at least one car. Up to 14 per cent of households own 3 or more cars, and those additional expenses tied to owning your own vehicle can add up," he said.

"Not to mention car depreciation. Your car can lose up to one third of its value within the first few years of ownership. When you factor this into the subscription price, subscribing to a car becomes a flexible and economical proposition."

Customers can access a car for as little as $119 per week, which covers the car rental, registration, maintenance, insurance and roadside assistance. Cars can be dropped at the customer's house, and the subscription can be cancelled at any time, with a two week notice period. Customers can also swap cars at any time for $150, as well as get a free swap once a quarter.

Carbar has also expanded its partnership with Caltex, and has introduced new drop-off points for after-hour delivery in Croydon as part of the move.

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Picture: Getty Images

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