Car subscription services are gaining popularity in New Zealand, offering a flexible, convenient alternative to traditional car ownership. These services provide Kiwi drivers with an easy way to access vehicles without the long-term commitment, high upfront costs, and ongoing responsibilities of owning a car. Here’s a closer look at how car subscription services work, the benefits they offer, and the key players in New Zealand’s growing market.
How Do Subscription Car Services Operate?
Think of car subscriptions as the “Netflix of driving.” Instead of purchasing or leasing a vehicle, you pay a weekly or monthly fee to access a car. This fee typically includes insurance, maintenance, registration, and roadside assistance, so there are no hidden costs. Although you don’t own the car, you can drive it as much as the agreement allows—usually over 1,000 km per month. When you’re ready for a change, many subscription services even allow you to swap to a different model to suit your evolving needs.
Benefits of Car Subscriptions Over Ownership
Car subscriptions offer a range of advantages that appeal to a variety of drivers, from urban professionals to eco-conscious consumers. Here are five key benefits of using a car subscription service in New Zealand:
1. Financial Flexibility: Subscriptions eliminate the large upfront costs associated with buying a car. Instead of committing to a loan or lease, you pay a monthly fee, allowing for a more flexible budget that you can adjust as needed.
2. Minimal Hassle: With subscriptions, there’s no need to worry about additional costs like maintenance, insurance, or registration—they’re typically included in the monthly fee. This means fewer unexpected expenses and less hassle.
3. Variety and Flexibility: Many services allow you to switch vehicles based on your needs. Want a compact car for city driving one month and an SUV for a road trip the next? Subscriptions give you the freedom to adjust your ride as your lifestyle changes.
4. Eco-Friendly Options: Several car subscription services in New Zealand offer electric and hybrid vehicles, which can appeal to environmentally conscious drivers. This is a low-commitment way to test out greener options without the upfront investment in an EV.
5. Access to New Models and Premium Features: Car subscription providers often update their fleets regularly, giving subscribers access to newer models with the latest safety, entertainment, and convenience features. This is perfect for those who enjoy driving newer cars without the cost of upgrading every few years.
Key Players in NZ Car Subscription Services
Several major companies have entered the New Zealand car subscription market, each offering unique features and vehicle options. Here’s a look at some of the key players:
Sixt
In partnership with the Giltrap Group, Sixt offers a premium car subscription service in New Zealand. Subscribers have access to a range of vehicles, from everyday models to luxury and performance cars, with flexible terms from 1 to 12 months. Sixt’s all-inclusive packages cover insurance, maintenance, registration, and allow vehicle swaps as needed. With both traditional rentals and subscription options, Sixt appeals to drivers looking for either short- or long-term solutions.
Snap Subscribe
Snap Subscribe specialises in electric vehicle (EV) subscriptions, making it an ideal choice for eco-conscious drivers. Plans start at $649 per month, offering models like the Nissan Leaf, Tesla, and Polestar. Subscriptions cover insurance, maintenance, and registration, and even include a charging cable, allowing users to enjoy EVs without a long-term commitment. Snap’s flexible terms make it easy to experience electric driving without the upfront costs of EV ownership.
Turners
For a more budget-friendly option, Turners provides a car subscription service that includes older models. Plans start at $140 per week for vehicles like the 2012 Nissan Leaf, making Turners a good choice for those looking for an affordable entry into car subscriptions. However, there may be mileage limits and damage liability fees to consider. This service is well-suited to those who want a lower-cost option and don’t mind driving an older model.
Mevo
Originally a car-sharing service, Mevo now offers Mevo Subscribe, a flexible car subscription service available in Auckland and Wellington. With terms from 1 to 12 months and an open-term option with just 30 days’ notice, Mevo provides options for short- or extended use. Subscribers can choose from a variety of vehicles, including the 2024 Suzuki Swift (starting at $189 per week) and the Tesla Model 3 ($339 per week), among other compact and electric models.
Is a Car Subscription Model for You?
Car subscriptions aren’t for everyone, but they offer unique advantages that can be ideal for specific lifestyles. Here’s who might benefit most:
• Urban Dwellers: If you live in the city and only need a car occasionally, a subscription could be more affordable and practical than ownership.
• Young Professionals and Expats: For those new to New Zealand or early in their careers, subscriptions offer the flexibility to access a car without the commitment of ownership.
• Frequent Travelers: Need a compact car for weekdays and an SUV for weekend adventures? Subscriptions allow you to switch models to suit your changing needs.
• Eco-Conscious Consumers: With access to electric and hybrid vehicles, subscriptions make it easy to try out greener options without the upfront cost of buying an EV.
The Future of Car Subscriptions in New Zealand
Car subscription services are set to expand in New Zealand, offering more options, flexibility, and greener choices than ever before. With increasing interest in premium subscriptions, more variety in vehicle models, and a growing emphasis on sustainability, car subscriptions could become a mainstream alternative to car ownership. As more providers enter the market and competition drive innovation, Kiwi drivers can look forward to a broader range of options—from compact city cars to luxury vehicles and electric models—all tailored to fit different needs and lifestyles.
Car subscriptions are reshaping the way New Zealanders think about car access and ownership. For those looking for convenience, flexibility, and a low-commitment approach to driving, this model offers an exciting alternative that’s only set to grow in the years ahead.
