TRA - Turners Automotive Group [previously TNR - Turners Limited]

[oldtech]

I'd say almost zero setup cost will be necessary, as they actually work with Carly who have everything setup. All they'll need for NZ is data entry.

Turners is licensing the concept from ASX-listed Collaborate (so I wonder how much the licensing costs??), a company it bought a 12 per cent stake in for $1 million in July last year (so you could argue that there's a $1 million setup fee straight off).

https://www.nzx.com/announcements/347148
https://www.nzx.com/announcements/336956

[Beagle]

I think you underestimate the subscription model appeal to younger generations.

As for insurance, it's included in the price, same as maintenance, road side assistance and certain amount of "free" kilometers.

So you get a car for $115/$133/$147(not NZ prices) a week and don't have to do anything. https://www.carly.co/subscription-plans/


This is not something I'd go for, but I can see a big market for this among younger generation.

Agree it will mainly appeal to younger generation who don't want commitments. "I'm Carly, come use me" kind of has that "Tinder" feel about it to me.
Don't imagine for one second you're going to get a supermodel for that price though....pretty basic 5 year old car for the lead-in price suggested https://subscription.carly.co/belmor...n-Barina-14641

Quite a bit more for a decent car https://subscription.carly.co/homebu...ommodore-14936

[peetter]

Turners is licensing the concept from ASX-listed Collaborate (so I wonder how much the licensing costs??), a company it bought a 12 per cent stake in for $1 million in July last year (so you could argue that there's a $1 million setup fee straight off).

https://www.nzx.com/announcements/347148
https://www.nzx.com/announcements/336956

You're right. But the licensing will provide them with the web interface. Arguably paying license is similar to working together sharing profit. On top of that they are paying licensing fee to a company that they have 12% stake in.

I think this is a very solid business model that could be used both by private users and businesses. I can imagine this as a great solution for Expats for example. Also looking at the listings in AU, it's not like they give you old banger as somebody mentioned, most of the cars are less than 5 years old.

[BlackPeter]

I think you underestimate the subscription model appeal to younger generations.

As for insurance, it's included in the price, same as maintenance, road side assistance and certain amount of "free" kilometers.

So you get a car for $115/$133/$147(not NZ prices) a week and don't have to do anything. https://www.carly.co/subscription-plans/


This is not something I'd go for, but I can see a big market for this among younger generation.

OK - lets calculate that through. If we take the absolute basic plan for A$115 per week ($6000 per year), then this gives you 1,200 km per month (14,400 km per year). Insurance and on road cost included, I recon petrol is extra. Say the car consumes 8 l / 100 km and you use the 1200 km per month, than you need to buy close to 96 l per month - say $230 pm or roughly $2,800 per year (ignoring the A$).

Make that (including subscription) $9000 per year for 14,400 km. OK - not absolutely unrealistic, but not cheap either ... and given that hardly anybody will manage to exactly drive the km paid for it will be more expensive.

Our (well maintained, but not very new) cars do cost us significantly less to keep on the road (including fuel, RuC, licence, insurance, maintenance, repairs and a sensible devaluation) - make that $5k to $6k per year and car - and we used to drive for this money between 20 and 25 k km per year and car (will be less now, but I don't have yet new numbers).

Not quite sure whether people will queue up to line Turners pockets ...

[mfd]

It's an unfortunate fact that there are plenty of people out there needing or wanting a car but unable to front up 5 grand all in one go, and to hold that much in case of mechanical failure. A subscription might be a useful alternative. Similar to the solar power firms offering to install on your rooftop and keeping most of the profit, as an alternative to those who can't pay for the install themselves. Another case of 'the rich get richer'.

[BlackPeter]

OK - lets calculate that through. If we take the absolute basic plan for A$115 per week ($6000 per year), then this gives you 1,200 km per month (14,400 km per year). Insurance and on road cost included, I recon petrol is extra. Say the car consumes 8 l / 100 km and you use the 1200 km per month, than you need to buy close to 96 l per month - say $230 pm or roughly $2,800 per year (ignoring the A$).

Make that (including subscription) $9000 per year for 14,400 km. OK - not absolutely unrealistic, but not cheap either ... and given that hardly anybody will manage to exactly drive the km paid for it will be more expensive.

Our (well maintained, but not very new) cars do cost us significantly less to keep on the road (including fuel, RuC, licence, insurance, maintenance, repairs and a sensible devaluation) - make that $5k to $6k per year and car - and we used to drive for this money between 20 and 25 k km per year and car (will be less now, but I don't have yet new numbers).

Not quite sure whether people will queue up to line Turners pockets ...

Ah, and this was stupid me assuming you could get a car for the advertised basic price ($115 per week). Just used the website, pretended to look for a car in Sydney and noticed that there are exactly zero cars for $115 per week available. The cheapest was a 2015 Holden Barrina for $133 per week. Any halfway decent car sets you on the cheapest plan (1200 km per month) back by roughly $200 to $250 per week - Jeez that's $12 k per year only to put the car into your garage (or driveway) and you have not even bought a drop of petrol .... Do your own sums, but if you add fuel we talk even under ideal circumstances more than $1 per km for the client. Under less ideal circumstances it will be much dearer.

If this is Turners next big thing and if it works (which I doubt), then there must be a lot of people around who can't do their numbers and have plenty of money to throw away ...

[Beagle]

Ah, and this was stupid me assuming you could get a car for the advertised basic price ($115 per week). Just used the website, pretended to look for a car in Sydney and noticed that there are exactly zero cars for $115 per week available. The cheapest was a 2015 Holden Barrina for $133 per week. Any halfway decent car sets you on the cheapest plan (1200 km per month) back by roughly $200 to $250 per week - Jeez that's $12 k per year only to put the car into your garage (or driveway) and you have not even bought a drop of petrol .... Do your own sums, but if you add fuel we talk even under ideal circumstances more than $1 per km for the client. Under less ideal circumstances it will be much dearer.

If this is Turners next big thing and if it works (which I doubt), then there must be a lot of people around who can't do their numbers and have plenty of money to throw away ...

Like I said earlier, this will appeal to the "Tinder" generation who don't want any commitments. Its a completely different way of thinking than you and I can relate too.

[winner69]

Turners supplying 200 cars to start with

I recall chatting to Rod Drury years ago ...and he was over the moon as they had just signed up their 100th subscriber

One needs to have a vision

[peetter]

Ah, and this was stupid me assuming you could get a car for the advertised basic price ($115 per week). Just used the website, pretended to look for a car in Sydney and noticed that there are exactly zero cars for $115 per week available. The cheapest was a 2015 Holden Barrina for $133 per week. Any halfway decent car sets you on the cheapest plan (1200 km per month) back by roughly $200 to $250 per week - Jeez that's $12 k per year only to put the car into your garage (or driveway) and you have not even bought a drop of petrol .... Do your own sums, but if you add fuel we talk even under ideal circumstances more than $1 per km for the client. Under less ideal circumstances it will be much dearer.

If this is Turners next big thing and if it works (which I doubt), then there must be a lot of people around who can't do their numbers and have plenty of money to throw away ...

I admit I went off the basic advertised price. But I still think the potential is there. Beagle is right about the new generation. No commitment approach with complete lack of financial education could make this a big hit.


Also this being a subscription, it seems good for people who just need a car for couple of months. Another point is an image thing, as you apparently can exchange the cars every month.

[winner69]

K

I must admit this rebranding stodgy old "renting" to brave new world "subscription" is pretty fabulous. Perhaps if Eaqub had called Generation Subscription instead of Generation Rent younger people would be feeling better about housing costs.

I guess TRA may have an advantage in buying cheap cars at rock bottom price to use in this operation and the marginal costs of service may not be that high given they already have people and branches around NZ. However, marginal cost view of the world often leads to marginal businesses that become the tail that wags the dog.

Highlighted bits — So true Mogul