What are my options for getting a car?

Traditionally, you can buy a car in Malaysia through a hire-purchase-loan or lease it through a leasing company. However, FLUX offers the third option, via a car subscription.

Let us look at each option in more detail to help you determine which option is best for your needs, budget and circumstances.

Car Loans

There are a few pros to buying a car via a loan. First, the monthly payments are generally low compared to a car lease. This doesn't include servicing and paying for unexpected significant repairs; however, if you're buying new, most cars are covered by a warranty.

Since you're the car owner, you can make any changes and modifications. You can also drive it anywhere without worrying about any mileage cap.

The cons? You don't actually own the car outright when buying a car via a loan. It's only 100% yours once you've paid the entire loan. 

With a new car, be prepared to get hit with depreciation. New cars generally depreciate between 15% to 35% after the first year. If you plan to change your car every few years, this is a considerable cost & disadvantage.

As we've mentioned above, you are responsible for all the costs of having it, including insurance, road tax, maintenance, and any unexpected wear & tear repairs. Depending on the items and your car, these costs could be relatively affordable or could cost you a pretty penny.

Car Leases

Car leases often allow you to drive a brand-new car for a fixed contract duration. 

They allow you to have a car without needing any car loan, downpayment, or interest. They often include insurance, road tax, maintenance, and wear and tear, potentially saving you money against unforeseen repairs, especially if you go with a more expensive continental car that requires more expensive parts. 

Leasing also means you're not tied to a typical seven or nine years loan, which can be beneficial if you're an expat who will only be living in Malaysia for a short period or might have plans that can affect your ability to service a loan in the future.

You also can skip the resale worries. There is no need to worry about it because you can just return the car when the lease is up. The only costs you usually have to pay at the end are excess mileage usage or unusual wear and tear.

The major downside of a car lease is that you will never own the car outright, and you'll have never-ending monthly payments if you would like to keep having a car or switch cars every few years.

FLUX All-Inclusive Car Subscription

A FLUX All-Inclusive Car subscription has a few similarities with car leases. It also covers insurance, road tax, maintenance, and wear & tear, requiring no loan or a downpayment. However, a FLUX subscription comes with A LOT more added benefits. 

With FLUX, you can subscribe month-to-month for maximum flexibility or 12, 24, 36, or 60 months to take advantage of the lower monthly fees, which is much more freedom than a car loan.

Depending on your needs, you can choose your monthly mileage packages. It might sound restricting, but FLUX offers an Unlimited mileage package that does not cap how much you drive per month.

You can also cancel at any time or swap to another car! This means you can drive a new car whenever you want, without getting hit with depreciation and downpayment every time, like with a traditional car loan, or locked in until the end of your contract like a car lease.

And lastly, with FLUX, you can leave all the 'car work' to our COncierge Services team, who will take care of everything, including renewing your road tax & insurance, scheduling, picking up, and delivering your car for regular maintenance.

FLUX Subscribe To Own

Uniquely to FLUX, you have the option to own your car outright at the end of your subscription. 

It is the ideal way to finance your car with the lowest cost, especially if you want the subscription fees to contribute towards the eventual ownership of the car but want to avoid paying the massive upfront costs associated with vehicle ownership, e.g downpayment, insurance, road tax, maintenance, etc. or have their hire purchase loan affect their credit availability.

Once you've completed the 12-, 24-, 36- or 60-month subscription, you will be automatically entitled to purchase the subscribed car at the end of the subscription period at the predetermined Guaranteed Future Value (GFV).
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So, what should I choose?

Whether you decide to buy, lease a car, or subscribe to a car with FLUX, consider your needs and lifestyle. Do you want flexibility, or don't mind sticking with one car? Are you financially comfortable with paying a downpayment and unexpected expenses? Do you have trouble securing a loan? Consider these types of questions when choosing the best option for you. 

If you want a quality car with a lot of flexibility and perks, check out our large selection of cars from over 18 brands, including petrol-powered and electric vehicles. 

We only cherry-pick the best cars that have been A+ rated by an independent inspection service, so you can confidently subscribe. If you are unhappy with your car within the first 3 days or 150 KM, we'll take it back and help you find the perfect match.

If you have any questions, check out our Helpdesk or let us know at 03 6411 5611, or drop us an email at support@driveflux.com.