Avis wants its new long-term car rentals to rival traditional financing | Fin24

Online marketplace FlexClub is now allowing consumers to rent cars on longer-term subscriptions from Avis Fleet, the leasing arm of Avis Budget Group, for a lower price in response to rising demand for a service offering that rivals traditional vehicle financing, it said on Monday.

The longer-term car subscriptions on flexible contract will run month to month depending on the client’s needs.

Asked about the subscription term, FlexClub said it would run over 12–24 months — that is, monthly payment with a year or longer subscription term.

Demand for car subscription services increased sharply in 2021, FlexClub said.

In a statement on Monday, FlexClub said that these longer-term subscriptions are expected to better rival traditional vehicle financing “and fill a gap left by the low penetration of private leasing in SA”.

The long-term car subscriptions are targeted at consumers looking to commit for several months in exchange for a cheaper monthly subscription.

Most members signing up for vehicle subscriptions on the FlexClub platform — which offers flexible contracts — are between 30 and 40 years old, but demand growth seems to be rapidly accelerating across all age groups, according to FlexClub.

It is not the first time that Avis is partnering with FlexClub. Almost a year ago Avis Budget Car Rental, its car rental division, partnered with FlexClub to launch month-to-month car subscriptions for customers shopping online for a car. According to FlexClub, it now has “hundreds of members across South Africa” subscribing for vehicles via the FlexClub platform on a month-to-month basis.

Initially, the new longer-term car subscriptions through FlexClub will only be available to consumers in Johannesburg and Pretoria, but Avis plans to roll it out nationwide.

Avis Fleet is the leasing arm of Avis Budget Group.

* This article was updated on Tuesday 15 February 2022 to reflect that it is FlexClub offering the long-term subscriptions.

Originally published at https://www.news24.com.