In recent years, car ownership in South Africa has started to look a little different. Between high interest rates, the often times folly of balloon payments, and rising fuel costs, many drivers are rethinking the traditional idea of buying a car outright or committing to a long-term finance deal. 

Enter the car subscription model – a flexible, pay-monthly approach that promises the freedom of having a car without the burden of long-term ownership. But what exactly does it involve, and is it really the future of motoring, or just another motoring fad? 

To really get into the nuts and bolts of this topic, we will cover: 

• What Exactly Is a Car Subscription? 

• Why South Africans Are Taking Notice 

• The Catch: Cost, Choice, And Control 

• How It Differs from Leasing or Renting 

What Exactly Is a Car Subscription? 

Think of a car subscription as a mix between leasing and renting. You pay a single monthly fee that covers almost everything – the vehicle itself, maintenance, comprehensive insurance, and sometimes even roadside assistance and tracking. 

During the time of repayments, the car will remain the property of the provider which you will get to use for as long as you need. Included with this is the option to swap, upgrade, or cancel on relatively short notice. 

In South Africa, several companies now offer these packages, including brands like FlexClub, Planet42, and other subscription options from major manufacturers such as Toyota and Volvo. Monthly fees vary depending on the car’s value, the mileage you choose, and the included extras. 

Why South Africans Are Taking Notice 

For many South Africans, car subscriptions make sense because of the innate predictability and flexibility that is built into this purchase model. You see, instead of juggling separate payments for insurance, service plans, and maintenance, everything is bundled into one amount.  

You also do not need to worry about the vehicle’s depreciation or trying to sell the car later, because when you are done, you simply hand it back. 

This model is especially attractive to: 

• Frequent travelers or expats who only need a car for part of the year. 

• Young professionals who want a newer car without the long-term commitment. 

• Businesses and freelancers looking for short-term fleet or delivery options. 

The Catch: Cost, Choice, And Control 

Of course, there is no such thing as a free ride. Not in this life, at any rate. If we put this in rands and cents, we can say that, for example, a typical entry-level car subscription in South Africa can start from around R7 000 to R10 000 per month, while premium models can reach over R20 000 – often more than a comparable financed installment. 

As you can see, while the convenience is undeniable, the total monthly cost of a subscription can be higher than traditional car finance in the long run. We should also point out that during this period of repayments; you will not build any ownership equity. What this means is that once you stop paying, you have nothing to show for it. Oh, and depending on the provider, your choice of vehicles and kilometre limits may be restricted. 

How It Differs from Leasing or Renting 

The main difference between the subscription-based model and that of leasing or renting lies in its flexibility and inclusivity. The reality is that renting is generally short-term and can be expensive over time. Leasing, on the other hand, usually locks you into multi-year contracts with limited ability to swap cars. 

The subscription approach, on the other hand, sit neatly in the middle: month-to-month flexibility with all running costs included. We would therefore characterise it as a service model rather than a financing model, designed for drivers who value convenience over ownership. 

Feeling Informed? 

Globally, car subscriptions are gaining traction. Research by McKinsey & Company estimates that the subscription economy for mobility could reach US$40 billion by 2030. That said, in South Africa it appears that the uptake is still small but growing – especially in major metros where car access is essential, but ownership costs are steep. 

Car subscriptions might not replace ownership completely, but this approach does look like it is here to stay as an alternative. For drivers who prioritise flexibility and simplicity, the model offers a glimpse into the future, where “owning” a car might become less important than simply having access to one when you need it. 

As South Africans continue balancing affordability with mobility, subscription cars could shift from niche to mainstream, especially as more brands, banks, and insurers begin to integrate them into their offerings. 

Don’t forget to explore the rest of AA Inform, where we give you access to free tools and practical advice, as well as the chance to compare up to 7 home and car insurance quotes using the AA Insurance Supermarket to shop around.