Subscribe to drive an EV


How car subscription services are sparking interest in electric vehicles. 

Young woman on mobile phone while EV is charging.

Australian car subscription services, like Loopit, are changing the way motorists view traditional car ownership and are giving Queenslanders a taste of driving electric.

As of 31 December 2021, there were 7110 EVs registered in the state with RACQ research* showing high purchase prices and a lack of public charging infrastructure were deterring buyers.

Living in an uncertain world filled with travel restrictions, financial impacts and working from home, it’s fair to say COVID-19 is playing a huge role in deterring people from owning a vehicle in the future or affording to buy an EV outright.

Car subscription allows you to pay a set fee (from as little as $129 per week) to use a particular car for a period of time. 

The price may vary with which dealer or model of vehicle you choose however it doesn’t vary when selecting between electric and petrol/diesel vehicles. 

This fee covers car ownerships costs such as servicing and maintenance, insurance, registration and roadside assistance and gives you the freedom to change vehicles frequently without the hassle of selling your vehicle.

Loopit Co-Founder and Managing Director Michael Higgins said there was a strong link between the uptake of EVs and car subscription, with 77% of future EV adopters preferring to subscribe to an EV rather than buy it.

“Last year was a turning point in the conversation about electric vehicles,” Mr Higgins said.

“Our research shows that the majority of future EV adopters prefer to subscribe rather than buy a car.

“EV buyers are interested in the latest and greatest cutting-edge technology, not just from their vehicles but also from their ownership experience, and subscription makes it easier for drivers to go electric by streamlining the ‘ownership’ process.”

Loopit research showed less than 1% of new cars sold in Australia last year were electric yet 68% of Australians wanted to make the switch to electric in the next five years.

“The car subscription model in Queensland is increasing dramatically,” Mr Higgins said.

“We’re seeing a consistent month-on-month growth of about 10-15%.

“When you own a car, you might change it every three to five years, but with a car subscription you can change your car every few months.

“Car subscription gives you the flexibility to say I’d like to drive a Mazda CX5 now but for my holiday I might like to drive a 4WD and then later, for something fun, I’d like to drive a sportscar.

“Second to that, it’s an all-in-one single payment bundle.

“So, instead of paying registration, car insurance, servicing costs you just pay the one fee.”

Loopit research also showed that 76% of Australians believed car subscription would make EVs more popular by removing the long-term commitment of buying outright.

“I think there are still a lot of unknowns when it comes to EVs,” Mr Higgins said.

“Car subscription allows you to try driving an EV in a very low-risk way before buying one.”

Mr Higgins said major car manufacturers were also showing confidence in the EV market with some committing to go all-electric.

Hertz, one of the world’s largest car rental companies, recently announced the biggest order of EVs – 100,000 Tesla’s.

According to Hertz, the investment will allow the company to accelerate toward future mobility, with plans to eventually transition to a fully electric fleet.

“The huge Hertz order from Tesla was an industry game changer,” Mr Higgins said.

“It said this is a confidence in the space and where we see it going.”

*RACQ Quarterly Omnibus FY22 Q1

Power on with RACQ Roadside Assistance for EVs

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Things to note

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.