How does car subscription work - The complete guide

Whether you have several years of ridesharing experience behind you or have just decided to become an Uber driver, you’ve probably wondered if it's better to rent a car or buy a car the ordinary way for on-demand driving.

 Each option has its pros and cons, but since they’re so different, there is going to be a compromise either way. But what if there was a middle way that provided the flexibility of car rental and the ability to own the car at the end of the agreement?

Our Flexi own car plan combines the ease and flexibility of car rental with the benefits of buying a new car. If you’re not fully committed to either one, this might be a solution to consider.

1. How does Flexi own work for cars?

What does it mean to "rent to own" a car?

As the name suggests, you're renting the car or paying a subscription to drive it, and it becomes yours at the end of your agreement. Instead of saying goodbye to your hard-earned money with every weekly subscription payment like you would with a rental, you’re investing it long-term.

Can I drive a subscription car with bad credit?

Yes. Compared to traditional car finance, where you first apply for a loan that you repay later, with our Flexi own plan you pay one week in advance. Hence, there’s no need for credit, and therefore you can own a car even if you have a poor credit score. We consider all applications.

How does Splend's Flexi own plan work with bad credit?

The Flexi own plan is very similar to a standard rental agreement. Since you always pay the next week’s subscription, you can apply even with a bad credit score. Your Flexi own contract will also not affect your credit rating in any way.

How is Splend's Flexi own plan different to a car lease?

The biggest difference between the Flexi own plan and a car lease is that you don’t need to apply for credit. And that’s just the tip of the iceberg. Here’s a list of the major differences when comparing Splend’s Flexi own plan to a car lease:

  • Your Flexi own contract includes maintenance (like replacement tyres and brakes) and roadside assistance

  • Your Flexi own car’s paperwork is always ready for on-demand driving (registration, Loss and Damage Cover, etc.)

  • If your car is damaged in an accident or needs repairs under warranty you won't be off the road as we'll provide you with a replacement courtesy car while yours gets fixed

  • You get ongoing driver support

  • With Splend Flexi own the more you drive, the sooner you own the car (as your excess km payments go straight towards paying down your car).

Rent to buy vs. Rent to own – What’s the difference?

It’s actually the same concept, but different companies use different terms. Whether it’s called rent to own or rent to buy, they're both a solution to become a car owner even if you have bad credit – since renting means paying in advance, and therefore no credit check is required.

Do I need a down payment for a car subscription plan?

Yes. The amount will vary depending on your subscription provider. With Splend there is a one-off setup fee to cover the costs of ordering and shipping your car, as well as the necessary paperwork, so your car is ready for work from day one. The setup fee also gives you access to all Splend customer benefits for the entire duration of your subscription, such as dedicated support, professional training, customer events, and more.

Can I drive Uber with a subscription car?

Yes. If it’s stipulated in your subscription agreement, you can drive with Uber.

Splend’s Flexi own is a car subscription plan tailored for Uber drivers’ needs. On-demand drivers can access new-model cars on a flexible payment plan that fits their dynamic lifestyle.

Our cars meet all safety, accessibility, and emissions standards for on-demand driving in Australia, and they come with all the paperwork prepared, such as registration and Loss and Damage cover.

We can also help get you started with Uber, free of charge.

Get free Uber sign-up support

2. Why Flexi own?

What are the pros and cons of a car subscription plan?

The biggest pro of a car subscription plan is the flexibility it provides when compared to a car lease or car finance. It's one of the most accessible ways to buy a car - it only takes 15 hours a week of driving.

A downside car subscription plans could have is a slightly higher upfront cost. To start with Splend’s Flexi own plan, you pay the downpayment and one week's subscription payment in advance.

For a car with a weekly subscription fee of $319, you will have to pay a total upfront cost of $1,219 if you pick up your car on Monday. However, this amount is similar or even smaller compared to the deposit you have to pay to start with car finance. 

Car financeSplend Flexi own
Large deposit + credit checkyesno
Flexible contractnoyes
Coutesy car after accidentnoyes
Inspection & maintenance includednoyes
Car paperwork included (registration, rideshare insurance, etc.)noyes
Rideshare inspection & documentationnoyes
Customer benefitsnoyes
Business mentoringnoyes
Early buyoutyesyes
24/7 breakdown assistanceyesyes
Unlimited mileageyesno

Is a car subscription plan worth it?

This depends on many factors, but if you are looking for a flexible way to own a new model car, that combines the benefits of rental and ownership, then the answer is yes.

At Splend, we recommend our Flexi own plan if:

  • You want to own a new-model car with less commitment

  • You’re an on-demand driver and plan to drive for rideshare apps and delivery apps for at least three years

  • You want to save versus buying, financing and owning the ordinary way

  • You want an all-inclusive service tailored for on-demand driving

  • You want to be able to manage your cash flow by having all your car ownership costs bundled into one weekly payment and never have large out of pocket expenses like separate insurance bills, registration or servicing costs.

  • You're looking for an EV and want a low rate that costs far less than ordinary finance and insurance

Sign up to our Flexi plan

If you’re after ultimate flexibility and you don’t want to own the car you use for on-demand driving, or you just want to try it out, you might want to check our Flexi Try plan instead.

3. How to get on a car subscription plan

How can I get started with Flexi own car subscription plan?

After you’ve paid the setup fee, you need to pay a collection day fee for the remainder of the week you decide to pick up the car and the full amount for the next week. Since Flexi own isn’t a credit-based payment plan, you always pay for the upcoming period instead of repaying a loan.

Do I need insurance for my subscription car?

Yes. As with any car on the road, subscription cars also need insurance. As a rideshare driver its absolutely critical that your insurance covers you for rideshare driving as you don't wan tot be left short if you have an accident while driving customers. But the good news is that all Splend cars also come with comprehensive rideshare insurance, that allows you to use the car for on-demand applications, such as Uber.

Can I get a subscription car with a debit or credit card?

Yes. Depending on your provider, you can use a debit or credit card, issued by any bank. With Flexi own, we charge your nominated debit or credit card with your weekly subscription fee plus any additional charges every Wednesday. You only need to make sure you have enough money in your account when your payment is due.

How much does car subscription cost?

This amount will depend on the weekly cost associated with your Flexi own plan. You can view all Splend's cars and plans here.

If you pick up a $329 per week car on a Wednesday, it will cost you $1,507 to start. Remember, this includes the one-time setup fee, plus four days' worth of subscription payments until Sunday, as well as the whole next week in advance. After paying the upfront cost, you’ll be charged a $329 subscription fee each week plus additional charges.

Additional charges may include your excess mileage fees or any late fees in case you miss a payment. For Splend Flexi own these amount to $0.10 for every km above your 1,000-kilometre weekly allowance, and go towards early repayment—the more you drive, the sooner you own the car.

About Splend

Splend makes car ownership easier, more affordable and more accessible for rideshare drivers by building everything they need to earn more, pay less and stress less into one affordable weekly payment. It’s smooth driving, with no surprises and the lowest total ownership cost you’ll find – which is how car ownership for rideshare drivers should be. For more information about Splend, make an appointment and drop by to your local Splend Hub, email us, or say hello on 1800 775 363.