Fleet Financing

Avis wants its new long-term car rentals to compete with traditional financing

This isn’t the first time Avis has partnered with FlexClub.

Avis Fleet, the leasing arm of Avis Budget Group, now allows consumers to rent cars on longer-term subscriptions at a lower price in response to growing demand for a service offering that rivals car finance traditional, he said Monday.

Longer-term car subscriptions on a flexible contract, launched via the FlexClub online marketplace, will run month-to-month depending on customer needs.

When asked about the subscription term, Avis said it would be for 12-24 months, i.e. monthly payment with a subscription term of one year or more.

Demand for car subscription services has surged in 2021, Avis said.

In a statement on Monday, Avis said these longer-term subscriptions should better compete with traditional vehicle financing “and fill a void left by the low penetration of private leasing in South Africa”.

Long-term car subscriptions are aimed at consumers wishing to commit to several months in exchange for a cheaper monthly subscription.

Most members taking out vehicle subscriptions on the FlexClub platform – which offers flexible contracts – are between 30 and 40 years old, but growth in demand appears to be accelerating rapidly across all age brackets, according to FlexClub.

This isn’t the first time Avis has partnered with FlexClub. Nearly a year ago, Avis Budget Car Rental, its car rental division, partnered with FlexClub to launch monthly subscriptions for customers buying a car online. According to Avis, it now has “hundreds of members across South Africa” ​​who subscribe to vehicles through the FlexClub platform on a monthly basis.

Initially, the new longer-term car subscriptions through Avis Fleet will only be available to consumers in Johannesburg and Pretoria, but Avis plans to roll them out nationwide.

Avis Fleet is the leasing arm of Avis Budget Group.