PETALING JAYA: Access to mobility for many Malaysians will be to enter into a debt for the acquisition of a car.
While a car is probably the second most expensive asset purchased by a household, it is a known fact that it is a depreciating asset.
Tan Sri Zeti Akhtar Aziz said the way that car ownership is viewed is changing and consumers want greater flexibility and convenience.
“The automotive industry needs to adapt and evolve to leverage on cutting-edge technology that enables inventory to become more productive. Fleet management can become more efficient at generating financial returns.
“By no means will traditional car ownership become obsolete but in a future that points towards a world where consumers can enjoy choice with flexibility, car subscriptions present an exciting opportunity for innovation in this evolution, ” she said in a statement.
And this is where Flux Sdn Bhd – a car subscription technology startup – aims to offer, which are the benefits of owning a car and none of the drawbacks.
Zeti, who is Flux chairman, said a car subscription service will empower consumers to have greater control and flexibility when managing their personal finances with respect to their cars.
“From a financial perspective, an individual needs to take into account the total cost of ownership.
“And yet for so many Malaysians today, access to mobility is to enter into a debt for the acquisition of such an asset.
“This is because there aren’t many competitively priced alternatives in the market, ” she said in a statement, adding that the financial burden then falls upon the household.
The former Bank Negara governor noted that while the debt to gross domestic product (GDP) ratio of households has declined over the recent years, it is still elevated relative to Malaysia’s regional neighbours.
In periods of financial hardship, Zeti said a car subscription enables consumers to swap out of their existing car subscription to something more economical.
Conversely, when times are good, consumers can upgrade their car according to their preference.
She added that companies can also capitalise on a service like Flux and no longer need to purchase a fleet of cars and have depreciation hit their balance sheets.
“With this service, companies can outsource the fleet management to a specialist with flexible contract terms and pricing.
“Again, this flexibility gives businesses greater agility when dealing with economic cycles.
“While Flux serves the people, it also has the potential to serve Malaysia. The Flux service aspires to leverage on technology to create safer roads with lower driving-related incidents, ” Zeti said.
She added that the usage of data through vehicular telematics installed in its cars aims to incentivise better driving behaviour.
And also in the event of a traffic incident, the device immediately dispatches emergency services to the location to render assistance.
The recently launched Flux is an all-inclusive monthly car subscription service that involves a simple flat fee, which covers the insurance, road tax and maintenance.
There is zero downpayment and no hidden charges.
The service also offers a concierge service that manages all maintenance and car-related administrative matters.
Zeti was part of the pioneering team to establish Flux, which was registered in January last year, prior to her appointment to other positions.