Car collecting dust? You can now rent it out via Flux – paultan.org
Things changed overnight. We’re now working from home and ordering food deliveries. Weekends are spent on the same couch watching Netflix. Our cars are used for essential trips like tapau and groceries, nothing more. How long does one tank of fuel last these days?
If an extra car – whether for practicality or fun – was a great idea before, it might not be such a good idea now when it’s collecting dust (and problems from being underused) while incurring costs. You don’t even use your primary ride enough, never mind the spare one. And this is before looking at pay cuts or lost jobs that some have had to endure.
The regular exit plan is to sell it, but with average used car prices down by over 10% compared with this period last year (according to Flux), the amount you get might not be able to cover the outstanding loan, which makes selling less appealing. Car subscription service Flux is now offering an option: renting your car out.
“Trade-in and resale prices for used cars are currently depressed. Don’t bite the bullet and incur losses on your investment. With a little patience, you could make some money with Flux and sell your car at the right time for the right price,” goes the pitch.
Flux calls it “subscribe out your car”. Launched in 2019, the multi-brand car subscription platform offers cars to individuals and companies for one to 36 months. Typically, Flux sources its inventory from automotive retailers, but has now opened its doors to individuals, allowing private owners to subscribe out their cars to over 4,000 Flux members.
Costs aside, a main reason to bid farewell to your car is the time and effort needed for maintenance and renewals, especially when you’re not driving it enough – poor ROI. Flux says that it has a concierge team to handle annual insurance and road tax renewals, as well as servicing, so it’s full hands-off when you surrender your car to them.
The biggest question would be about the security of your car. Flux claims that its insurance panel “specifically protects your car while under our subscription-type service”. The company adds that it monitors the status of your car and its occupants with onboard telematics. “Protection of your asset is our utmost priority, alongside creating a safe and positive experience for our members,” it says. Sounds good, but also a bit vague – make sure you read the fine print.
Finally, the main motivation – money. The chart above lists the estimated earnings for a variety of popular models, ranging from renting out on a monthly basis or giving up your car for three years. Flux says that its payment management system automatically pays out your monthly earnings to a bank account of your choice, all online of course.
To sign up, reach out to Flux and they will schedule an appointment to inspect your car and take you through the process, including a detailed explanation of your monthly earnings. If all the T&Cs are agreeable, Flux will photograph and upload your car to its platform. When there’s a taker, the company will collect the car from you. How’s your car/second car doing? What do you think of this scheme?
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