Recent Data released by the Federal Chamber of Automotive Industries has demonstrated that the car industry in Australia is showing positive signs of recovery post-covid. This includes a 17.9 per cent increase in car sales on the previous year and interestingly, a rise of some 36.3 per cent in rental and car subscription figures.
As in most major industry sectors, the impact of the Coronavirus pandemic had a dramatic influence on the international, automotive supply chain, including a concomitant effect on car sales. During this period car rental and car subscription services experienced extraordinary growth.
In many ways, car subscription reflects the rapid way in which society now functions. More and more, people are gravitating towards modes of existence and lifestyle choices that access flexible and on-demand services.
Certainly, subscription services are fast becoming one of the dominant revenue models for businesses. Consumers commonly subscribe to a wide variety of services including software as a service, audio and digital streaming, food, exercise, and mobility as a service.
More recently, car subscription has entered the global and national market as a flexible and inventive way for consumers to enjoy the advantages of accessing a private car – particularly the primary convenience and lifestyle a new car affords – without the commitment and responsibility of traditional ownership or long-term contracts.
It’s a model that has a number of advantages for both customers and companies. Hence it’s increasing popularity.
There was a time when few would have imagined the notion of car subscription. Indeed, who would have thought accessing movies and cars would follow the same model. Yet, it’s a remarkably smooth process that allows consumers to use a new vehicle as their own for almost any time frame. One of the obvious attractions for many consumers is the ability to utilize such a service upon one’s own terms, including the ability to cancel at any time. Car subscription presents a number of possibilities. For instance, it’s an ideal way to trial a car one might be thinking of buying, or a means of accessing a car interstate for holiday or work purposes. It’s also a way for retirees to enjoy luxury car access without fear of any time-frame or the burden of selling.
Car subscription is also something of a gift for car lovers. It provides an ideal avenue to explore new models at a far more frequent rate than would normally be possible. Thus, if you have a passion for driving exceptional and luxury vehicles, for that particular pleasure that comes from the thrill of experiencing the latest automotive trends and developments – your time has now come.
In terms of the cost of car subscription, many consumers may find that after examining finance, registration, tax and maintenance, subscription may provide a more cost-effective solution to ownership. However, it’s important to acknowledge that with any such financial activity, each situation is individual and one should always consider one’s own particular circumstances before making a decision.
What is clear is that there is a marked distinction between the quality of car subscription providers on the market. Thus, it is critical to engage only with reputable Brands.
Of particular note, is the Brisbane based company, Luxicar. It’s an exciting Brand that provides a broad range of services with a focus on high-quality and luxury vehicles, including Jaguar, Land Rover, Mercedes, BMW, Isuzu Ute, Isuzu light truck and Tesla Toyota.
Created and run by two entrepreneurial Brisbane men – Scott McMillan and Clark Keating – who share a passion for life, business and cars. In fact, they even share the same birthday. Scott says “Clark and I met each other through our childrens’ school and became good friends”. It was over a family BBQ and gathering that Scott communicated Luxicar to Clark. The Brand was then in its infancy but the idea immediately appealed to Clark, who was, and is, an avid car enthusiast. Fortuitously, Clark was looking for a career change. Thus, the next day the pair “sat down and formulated a business plan and partnership which has seen the business have amazing growth over the last 18 months”. Scott says, “We share the same vision for the company which is keeping it owner operated where the customer can reach either of us at anytime”. This direct line between consumer and supplier reflects the straightforward and efficient business foundation of Luxicar.
Luxicar has attracted a significant clientele and whilst it has focused heavily on Queensland, it successfully services clients in all Australian states and territories.
Interestingly, the visionary concept of the Brand was developed in 2018 well ahead of the relevance of the pandemic. Scott has over twenty years experience in the automotive industry, including new and used franchises. He has always had a keen understanding of consumer needs and recognized an important gap in the market. When existing customers would contact him to trade-in their old car for a new car, many of whom had minus equity and who were frustrated by the realities of insurance, loan penalties and contracts, he realized there must be an alternative solution – something that aligned better with consumer needs and hopes.
Clark Keating is a retired AFL player who enjoyed an esteemed career with the Brisbane Bears and Brisbane Lions. He played with the Lions during their successful 3-peat period and knows that success is built upon dedication, perseverance and hard work. He knows first-hand the importance of each member of a team and says success at the Lions “didn’t happen overnight, it took years of trial and error to have the winning team”. Similarly, Clark says “Being a relatively new company it’s important to have the right team around you to make sure you are all on the same page so you can grow and succeed”. He knows too that longevity in sport and life require the same approach, “There are always going to be bumps in the road but you must work your way through those bumps as the journey is never over”.
Certainly, Clark’s background in the sports industry has armed him with the experience and foresight that comes from involvement in elite sport at its best. He says, “Discipline and belief is what I’ve transferred from footy into the business world. You must have the belief that what you are creating and growing is going to create a point of difference and that’s what we have done at Luxicar. We are providing an experience for every client”.
One of the great things about Luxicar is the interest and respect of the Brand for its customer base. The Brand provides an exceptional luxury service through personal communication, experience and expertise. This is a particularly important factor when dealing with any car subscription service since the reality is that whilst it might offer the same convenience and accessibility as a Netflix service, the product and the relevant value of the product is vastly and consequentially different.
Luxicar has also attracted support from well known Brand Ambassadors, including Steve Smith and Usman Khawaja.
Essentially, Clark and Scott enjoy their work and are motivated by the desire to attract and maintain satisfied customers. They have a savvy understanding of the marketplace and are harnessing the extraordinary accessibility of the modern age upon a solid foundation of traditional principles and business acumen.
The outlook for the car industry is remarkably interesting, particularly given the state of flux over recent years and the impact of this upon the value of car ownership.
Subscription presents an alternative way of utilizing a new car upon terms and conditions that for many, align better with personal or business outlooks. It’s also worth noting that subscription does not preclude ownership. For instance, Luxicar also services purchasing and selling needs.
Whilst Clark and Scott are determined to grow the company, they are also committed to keeping the “Luxicar Brand personalized”. Ultimately, Scott says “we love seeing customers experience the Luxicar way where we take all the hassle out of a new car experience”.
As the wheels of motion continue to change, this Brisbane based duo is firmly fixing the headlights on the road ahead.