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Are car subscriptions better than vehicle financing?

Are car subscriptions better than vehicle financing? By Opinion Tinashe Ruzane IN 2020, the average price of a new car in South Africa was R321 715, way beyond the budget of the average wage earner without the use of vehicle finance. Driven by strong social pressure to own a vehicle, South Africans can spend as much as half of their monthly salaries on the cost of a new vehicle, forking out an estimated R6 000 a month to finance the average new car over six years. The total cost of car ownership is, of course, much higher than this figure suggests – once maintenance, insurance and fuel are factored in, the average new car owner carries a total cost of more than R8 000 a month, escalating yearly.

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How much it costs to buy a monthly car subscription in South Africa

How much it costs to buy a monthly car subscription in South Africa
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Disruptor FlexClub secures another $5m in funding for flexible car access

Disruptor FlexClub secures another $5m in funding for flexible car access By Philippa Larkin Share JOHANNESBURG - SOUTH African start-up FlexClub has secured another $5 million (R75m) in funding to scale its car subscription marketplace. The firm raised $1.2m in 2019. Established in 2019 by co-founders Marlon Gallardo, Rudolf Vavruch and Tinashe Ruzane, FlexClub is an online marketplace connecting customers looking for flexible access to long-term cars with its partners offering car subscriptions. FlexClub said on Friday it assessed the risk profile of its members using several alternative data sources and rewarded its members for responsible vehicle usage. Since it collaborated with Uber in Mexico and South Africa in 2019, it had helped its community of drivers subscribe for cars that become cheaper to purchase every month through rewards.

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South Africa s FlexClub adds $5M to seed round to scale its car subscription marketplace – TechCrunch

South Africa’s FlexClub adds $5M to seed round to scale its car subscription marketplace The traditional process of buying, insuring and financing cars across emerging markets can be challenging, and it defeats the purpose of building an all-around car shopping experience. Today, FlexClub, a South African company, has been provided with $5 million to improve drivers’ experience in these markets. FlexClub was founded in 2019 by Marlon Gallardo, Rudolf Vavruch and Tinashe Ruzane. The company is an online marketplace that connects customers looking for flexible access to long-term cars with its partners, offering car subscriptions. That same year, the company closed a $1.2 million seed round led by CRE Venture Capital. According to Ruzane, the company’s CEO, this $5 million (in equity and debt) is a seed extension round, bringing the total investment raised by FlexClub to over $6 million. The company says it will use the funding to improve its technology which protects and limi

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South Africa s FlexClub adds $5M to seed round to scale its car subscription marketplace

South Africa s FlexClub adds $5M to seed round to scale its car subscription marketplace
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