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Australia’s leading car subscription service Carly has today signed an historic, industry-first deal with Korean automotive giant Hyundai, which will see new and used vehicles available for customers on a flexible basis nationwide via the Hyundai dealer network.

Hyundai’s partnership with Carly marks a significant step forward for the car subscription industry in Australia:

  • First manufacturer to embrace car subscription: Hyundai is the first manufacturer to support a vehicle subscription service in Australia across multiple models in its new vehicle range

  • First Dealer Network: The Hyundai dealer network is the first to deliver a subscription service to enable customers to subscribe to use Hyundai vehicles

  • First Subscription Service: Carly is the first manufacturer-led subscription service to enable the Hyundai dealer network to earn subscription revenue from vehicles whilst retaining long term ownership and eventual resale opportunities

  • First Manufacturer Supported Marketing Campaign: Hyundai will fund, and Carly will manage, a digital marketing campaign to promote the availability of subscription vehicles from Hyundai dealers.

“The partnership comes at a time when new car sales are continuing to decline. Car finance is getting harder to obtain and banks are cracking down on lending, especially after the banking Royal Commission,” said Carly CEO Chris Noone.

“This is a new age for car ownership in Australia. The goal posts have definitely shifted from outright purchase and debt financing to more flexible arrangements to suit lifestyle and personal circumstances”.

“Some are complaining that conditions are tough in the automotive retail market, so Hyundai and Carly are seizing the opportunity to empower Hyundai dealers to innovate and engage customers in a fresh way that suits their lifestyle and budget. Hyundai is the third largest vehicle brand in Australia and this partnership with Carly will surely advance the development of the car subscription market in Australia.

“This latest agreement with Hyundai follows the recent signing of agreements with Suttons Motors and Turners Automotive Group and is further validation of the vital role that Carly plays in the rapidly changing automotive industry. It provides the potential to monetise a large volume of vehicles from Hyundai’s 172-strong nationwide dealer network with support from the third largest vehicle brand,” concluded Mr Noone.

JW Lee, CEO of Hyundai Motor Company Australia commented “We’re excited to be partnering with Carly to launch an industry first vehicle subscription programme delivered through the Hyundai dealer network.”

“The future of personal mobility will not be based solely around vehicle ownership, and Hyundai will adapt to changing consumer demands.”

“Through this partnership we will provide consumers with more choice, an alternative to purchasing a vehicle, which for some drivers may better suit their ever-evolving lifestyles.”

Rather than just selling vehicles to enable others to generate subscription revenues, under this partnership with Carly, dealers will retain ownership of the vehicles, benefiting from a recurring revenue stream, an ongoing relationship with customers and secure quality used car stock for eventual resale. Carly will provide the technology platform to facilitate and manage the subscription relationships between Hyundai Dealers and vehicle subscribers, enabling Carly to run a capital light business model.

From today, Carly and Hyundai will jointly initiate a dealer signup and onboarding campaign to engage Hyundai network dealers in the subscription program.

Carly will develop a Hyundai mini-site to showcase the Hyundai vehicles available for subscription and will utilise geo-location functionality to display the vehicles available at dealers located in closest proximity to the subscriber.

Carly will deliver a new recurring revenue stream for Hyundai dealers and introduce Hyundai vehicles to a growing customer segment that is seeking flexible access to vehicles as an alternative to long term vehicle ownership.

Carly is an alternative to saving for, leasing or borrowing money to buy a car and offers access to a range of new and used vehicles including insurance, registration and maintenance packaged into a single monthly payment with no long term commitments.  Subscribers can start, pause and stop their subscription and ‘switch’ cars as their needs change. This could be a short term switch to a vehicle more suitable for a holiday, a longer term switch to cater for increasing family size, or pausing a subscription due to an extended holiday.

The initial term of the agreement with Hyundai for the subscription proposition is six months.