For much of the past decade, car subscription sat on the fringes of Australia’s vehicle market. Often compared with short-term rental or car share, it was viewed as a consumer convenience rather than a serious fleet solution. That perception is now changing, as subscription providers mature their business models and fleets look for more flexibility in an increasingly uncertain operating environment.
According to Nick Boucher, CEO of Karmo, 2025 marked a turning point in how subscription is being evaluated by fleet decision-makers.
“When you look at the overall market itself, I think it’s (fleet) just under half the market. So it’s a huge space, and one that we knew we had to get into.”
The move into fleet has not been opportunistic. Boucher says the business waited until the fundamentals were in place.
“We just wanted to make sure that we were comfortable in our business model, availability of stock, and also our technology was ready to go. And you know, those three things are ticked.”
Scale, utilisation and fleet discipline
One of the challenges facing larger fleets is managing utilisation as vehicle numbers grow. Boucher argues that scale quickly exposes weaknesses in fleet controls.
“I think it’s a lot easier to do things when you’re running 6, 7, 8, 100 vehicles, but when you start getting over 2,000 vehicles, scale becomes a bit more of a problem if you’re not managing those things well.”
Accident management, insurance, repairs and downtime all become more complex as fleets grow. Subscription, he suggests, can act as a pressure-release valve rather than a replacement for core fleet assets.
“Why would I not do this for 15 per cent of my fleet or 20 per cent of my fleet? Because then I do have the ability of dropping these cars pretty quickly where I don’t require them.”
This flexibility becomes particularly relevant when contracts are won—or lost—at short notice.
“The beauty of the subscription is you’ve got the ability to then return those cars within the 30-day period… rather than having dead stock sitting there doing nothing.”
Government and council fleets: slow, but interested
Government fleets are rarely early adopters, but Boucher says local councils in particular are starting to engage.
“We’ve had really good uptake from local council, because it’s not actually falling into a category where they’ve already got suppliers or panels as such, because there’s no subscription.”
Subscription requires education, but once understood, it opens different conversations around balance sheets and debt.
“Once they understand the subscription benefits to them again, being off balance sheet… it could still be a big win to reduce overall debt.”
Electric vehicles as a low-risk trial pathway
Electric vehicles remain one of the biggest transition challenges for fleets. Subscription, Boucher says, has found traction as a low-risk entry point.
“The beauty of our model is that they can generally try to see it’s going to work for them, because it’s a big shift, right?”
As operational concerns are replaced by real-world experience, attitudes shift quickly.
“Once people are overcoming the fears with reality, they’re saying that with most vehicles, it makes a hell of a lot of sense.”
Residual value uncertainty also plays into subscription’s appeal.
“No one really has a genuine understanding of residuals yet on EVs… The beauty of the model is you don’t have that risk.”
Novated leasing, FBT and policy uncertainty
The FBT exemption for electric vehicles has accelerated EV uptake, particularly through novated leasing. Boucher supports the intent, while acknowledging the uncertainty.
“Anything that helps accelerate the take up of electric vehicle… is a good thing.”
However, he notes that subscription products designed to work beyond incentives may prove more resilient.
“We want to make sure that we’ve got a product for consumers, not just now, but also in 2035, or 2040.”
What Fleet Managers should be focusing on now
For fleets heading into 2026, Boucher’s advice centres on fundamentals rather than new technology.
“It doesn’t matter if you’ve got three or if you’ve got 20,000 vehicles in your fleet. Are you getting efficiency out of it? And are you getting the utilisation you require?”
In tighter economic conditions, under-utilised vehicles quickly become a cost burden.
“Every dollar saved is 100 per cent gross margin.”
Subscription may not suit every fleet or every vehicle, but its growing role is clear: a flexible tool to manage uncertainty, utilisation and transition—particularly as fleets balance emissions targets with operational realities.
As Boucher puts it, subscription is not about replacing everything that came before, but offering fleets another option in a market that is becoming more complex by the year.
- Procurement Is Not the Enemy: Why Whole-of-Life Thinking Starts Before the Purchase Order
Shannyn Garrett, Procurement Manager – Corporate Services at Serco, delivered a practical session on procurement strategy and whole-of-life cost management at the 2026 IPWEA Fleet Conference in Melbourne. Speaking to a room of fleet professionals facing increasing operational complexity, Garrett challenged the traditional focus on purchase price and explained why procurement decisions made today can - Cupra Leon VZ Review: The Hot Hatch That Makes Everyday Driving Feel SpecialThe Cupra Leon VZ is one of those cars that quietly surprises you. On paper, it looks like a sensible hatchback. In the car park, it blends in just enough to keep a low profile. But spend a week behind the wheel and you quickly realise this isn’t just transport — it’s a car that brings a
- The $50K Electric Van That Breaks the WOLC ModelWhole-of-Life Cost (WOLC) has always been the discipline that separates fleet procurement from private buying decisions. It forces Fleet Managers to look beyond the purchase price and consider fuel, maintenance, utilisation, resale value and risk. But in 2026, the WOLC conversation has changed. NVES regulations, rising diesel prices, and the introduction of emissions reporting requirements
- The Inflection Point: Why Used EV Values May Have Turned a CornerFor several years, uncertainty around resale values has been one of the biggest barriers to electric vehicle (EV) adoption in fleet. Questions about depreciation, battery health, and long-term demand made forecasting difficult and slowed replacement decisions. That narrative may now be changing. Recent activity in the used vehicle market suggests a turning point for EV
- Chery Adds More Affordable Tiggo 9Chery has expanded its large SUV offering in Australia with the introduction of a new front-wheel drive (FWD) version of the flagship Tiggo 9, lowering the entry price to $52,990 MSRP and broadening its appeal to families and fleet buyers looking for space, efficiency, and value. Positioned as a more accessible entry point into the
