While Teslas, which are all battery electric vehicles, are sold in many countries, they are still not officially sold in Malaysia. PEKEMA, the association of Bumiputera dealers, is however taking orders for Tesla models which it is importing in large numbers this year to be sold through its members’ dealerships. Pricing indicated by some dealers shows the cars (imported from the UK) to cost between RM342,800 and RM418,800.
PEKEMA has indicated that they will offer owners aftersales support, but without an official representative of the brand owner supporting the business, they will still rely on obtaining assistance from other parties.
However, if you are keen to find out what it’s like owning a Tesla – and not having the aftersales worries – FLUX is offering the Model 3 and Model Y on a subscription basis. The company says it will also give subscribers a 4-year warranty for peace of mind. Additionally, a concierge service is also for maintenance and document renewals along with nationwide roadside assistance and car theft recovery.
The COVID-19 pandemic has changed the world, affecting millions in various ways. With movement restrictions, even travelling around is limited. This has of course meant that the car you own is used much less than before. Sure, you are saving on fuel bills and toll charges as you drive much less but for many, there are still the monthly instalments to keep paying and periodic maintenance costs.
At some point, you may wonder if you need to own a car any longer, especially since there are e-hailing services that can provide safe and comfortable transport. Selling off the car may seem a good idea but with average used car values down, it may not be a practical move and might not resolve the loan issue without having to come out with some additional money to settle the balance owing.
Individual owners can now join
Flux, a car subscription platform which entered the market in 2018, has a proposition that may interest you. The company has so far been sourcing its inventory from automotive retailers but now it is offering the same business opportunity to individual car owners, allowing them to host and subscribe out their cars to over 4,000 Flux members.
The advantage of becoming a ‘Host’ with Flux is that you can then earn some money with your car which is hardly being used. This can help to offset the instalments and maintenance costs. There is also protection while the car is used by others as Flux provides insurance coverage and, with telematics, keeps an eye on the car’s usage as if it was their own asset.
Vellfire owner can get up to RM9,000
According to Flux, you can earn up to RM9,000 every month if you provide a Toyota Vellfire or up to RM2,100 if it is a Toyota Vios; a Honda CR-V could earn you up to RM3,050 a month. Almost any model is accepted but it will be inspected prior to Flux accepting it for listing. If the condition is good and the terms are agreeable, then the car will be listed on the platform, along with a picture. A Concierge will be assigned to coordinate the collection of the car.
Assuming your car is in constant demand, you should be able to get income every month from Flux. The money due to you will be paid into a bank account you designate, and the company guarantees prompt payment.
Two of the many models available from Flux.
“The past 18 months have been tough on everyone. That’s why we must all do our part to help our community. At Flux, we wanted to offer a way Malaysians can bolster their income without requiring much effort. Whilst other car-sharing services focus on short-term rentals which require you to manage each and every trip, Flux helps turn your car into a long-term money maker without costing you any time or effort.” said Aziz Ayman, Founder & CEO of Flux.
After going through the COVID-19 pandemic (which has not ended yet), the road ahead for businesses is going to be a challenging one. Virtually all companies have been impacted in various ways, some even having to cease operations. Those that are continuing their business have to optimise financial resources and review their expenses.
For companies which require a fleet of vehicles, there are issues of not just the long-term loan or lease but also maintenance and repair costs. The aim would be to minimise impact on cashflow and also reduce operating costs.
All-inclusive subscription fee
Flux, a 2-year old mobility provider, offers a solution it calls the ‘Flux Business Class’. This is an all-inclusive monthly car subscription service, with the added benefit of being able to enjoy additional tax savings on Flux expenses.
Companies can subscribe to a fleet of cars for just a year or up to three years, so if things don’t go so well, they are not tied to a long-term loan to be repaid or a lease of a few years. Insurance premiums, roadtax, maintenance and wear and tear parts replacement are included in a single monthly price.
Besides not having interest fees, no downpayment is required either. So all the company really has to pay for in monthly operating expenses are fuel purchases, parking charges – and traffic offence fines, of course.
Approved tax deduction
Being an off-balance sheet expense, it is possible to claim a greater amount back as an approved tax deduction compared with capitalising cars as assets. Flux will refresh the fleet so tax deductibility can be enjoyed throughout the subscription tenure.
All maintenance costs are covered by Flux and if necessary, a courtesy car will be provided.
The company will never be without a car even when it is being serviced or repaired for a longer period than expected. Flux Business Class benefits include a courtesy car so customers stay mobile.
Customers can choose from a wide range of new and pre-owned models from Japanese, European, Korean and Malaysian brands. SUVs, MPVs and pick-up trucks are also available, and subscriptions start from RM1,805.
‘In a state of flux…’ is a term that relates to constant change though not necessarily indecisiveness. Appropriately, a new company in Malaysia has chosen to call itself ‘Flux’ as a way of describing the concept of its business which allows customers to constantly change their vehicles. Flux offers an all-inclusive monthly car subscription service, covering all the benefits of having a dream car without the drawbacks.
To start with, members pay a monthly fee to use a car of their choice without commitment. This means that they don’t have to provide a downpayment nor take a loan that has to be repaid in instalments every month for many years ahead.
Like owning the car yourself
Unlike some other schemes, cars supplied by Flux are like your own, meaning they are parked at your home for as long as your subscription is active. It’s like owning the car, except the financial hassles are omitted. And what’s more interesting is that with the same subscription, customers have access to a range of models which can be requested for use.
The inventory is sourced from reputable automotive groups and retailers in Malaysia. At this time, the Flux collection includes models such as the Honda CR-V, BMW 6-Series, Toyota Yaris, Volvo XC40, Mercedes-AMG CLA 45 and the latest Toyota Camry.
Monthly or mileage subscription plans
Once a person has registered to be a member (starting an account costs nothing), he or she can then select a vehicle and a subscription plan which starts at month-to-month for total flexibility or up to 3 years for best value. The subscription plans indicate how long members intend to use the Flux service, not a specific car as they have the privilege to switch throughout their subscription which starts from RM814/month for a Kia Picanto.
Two of the models offered by Flux to members. There are new as well as pre-owned units in the inventory.
Members also choose a mileage package between Lite, Standard and Unlimited with monthly maximum mileages of 1,250 kms, 2,000 kms and cap-less mileage, respectively. The Lite package is offered at no additional charge.
A key benefit of Flux is the freedom to switch cars after a minimum of 1 month of use with just a standard switching fee. Following a switch, members pay the monthly rate for the newly chosen car. Flux says it is the only service able to offer such flexibility at the prices charged.
Members can switch to another model while their subscription is active.
Maintenance handled by Flux
Flux’s concierge service will help manage all car-related administrative and maintenance matters. This includes yearly document renewals alongside planning and execution of periodic service and repairs. In other words, maintenance of the vehicles is handled by the company throughout the subscription period.
Flux gives assurance that the vehicles, new and pre-owned alike, are independently inspected to determine that each and every one is maintained to the highest standards and free of major accidents and flood damage. The vehicles are, of course, fully insured and for safety and security, should the vehicle be involved in an accident, the installed telematics system will alert emergency services so assistance can be sent to the location.
Flux also takes care of all the maintenance needs, ensuring that the vehicles are serviced at the scheduled intervals.
In the event of an accident, the installed telematics system in the Flux vehicle will alert emergency services to send assistance.
Flux allows both Malaysians and non-Malaysians to become members. They must have a credit card from a Malaysian financial institution for charges to be made to, a mobile contact number and be above 25 years of age. They would, of course, need to possess a full driving licence and international driving licences are also accepted.
“I founded Flux to challenge the status quo and offer a better alternative to the conventional car loan, here at home in Malaysia. At Flux, we are excited to pioneer a new means to access all the benefits of having a car in your driveway, without the costs. We are proud to challenge the conventions of car ownership, working collaboratively with the leading local automotive groups. Together, we offer you freedom of choice, at unparalleled convenience. In short, Flux is the simpler way to ‘own’ your perfect car,” said Aziz Ayman, Founder & CEO of Flux, which also has former Bank Negara governor, Tan Sri Dr. Zeti Akhtar Aziz, as co-founder.
