This article about Karmo breaks down everything you need to know about the company, how their contracts work, and what your options are with regards to extending, upgrading, cancelling, and more. We’ve even given you a guide on vehicles and guide pricing, so you can easily compare subscriptions and make an informed decision.
Last update 2. March 2023 Reading time 3:28 min
Karmo’s mission is to evolve the way city’s move. One of the ways in which they aim to do this is by making access to a new car every 4-9 months more flexible, affordable and simple than ever before. With a focus on Electric Vehicles, Karmo works with individuals, small businesses and enterprise level clients to re-think what access to a vehicle can look like.
Karmo customers can select to subscribe to a car in a few easy steps ranging from short term up to 12-month terms. At the end of the term the customer simply hands back the old car, picks up a new car and continues with their life. The admin of car ownership doesn’t factor into their customers minds. Maintenance, registration, insurance and roadside assist are all standard inclusions. Nor is there any need to worry about depreciation of your vehicle as this is all factored into a price that makes car subscription as cost effective as traditional car ownership.
How it works
The application process is fairly straightforward.
- Firstly, contact and apply. Once you’ve contacted Karmo , they’ll send you an application form.
- Pick Your Car. Once approved they’ll organize your car and set up the car subscription contracts and payments. Once your car is ready for pickup, they’ll let you know.
- Simply Drive. They’ll give you the keys and let you get on the road. Payments will occur on the agreed basis and when your term is almost finished, they’ll get in touch to see what car you might like to drive next.
Costs and fees
Pricing structure and fees are extremely competitive when compared to traditional car ownership.
Once a car has been booked and the customer has signed all relevant documentation, the following payments will be applicable:
- 2 Weeks up front (not applicable to the shorter Tesla terms). The first 2 weeks of subscription are taken up front when the vehicle has been picked up.
- The customer will pay a weekly payment every week from there on via direct debit.
- Bond. There is a $300 bond paid by each customer at the time of pick up. This is fully refundable once the car has been returned.
- Excess Km charges. Each subscription car comes with 385 kms included per week. If you go over that, you will be liable for a 14.5c per km excess charge.
- Insurance Excess Reduction. Each car has included insurance with a $3000 excess. If you would like this reduced, this can be reduced with an optional charge at the time of booking
Standard Package Pricing
The standard weekly fee is based on the vehicle you select and is stated on their website. This includes:
- No application fees
- A new car every 4, 6 or 9 months
- All Maintenance and servicing
- State Registration costs
- Roadside assist
- 1666 kms per month
The standard weekly fee can vary depending on how long a customer might choose to have the car and how many kms per week they need.
Brands and Models
At Karmo, they offer a host of makes and models. Here are a selection of the makes they have available on subscription.
- Land Rover
Karmo requires customers sign up for a set duration and as such, it is expected that customers remain on the platform for that duration. However, with flexible terms from 1 day – 9 months depending on make and model, there is usually an option available that will suit each and every customer.
What’s Special about Karmo?
Here are the main benefits of enjoying a car on subscription with Karmo.
- Price. Due to the way Karmo acquires vehicles, prices are typically the same if not better than lease prices or the equivalent total cost of ownership.
- Flexibility. Customers can determine their own duration. With no large setup, application or admin fees, there is a term that will be suitable for every customer.
- Simplicity. The weekly payment covers everything required to operate a vehicle with the exception of tolls and fuel/charging. With no unexpected costs like maintenance or breakdowns, financial management is so much easier with a car subscription.
Karmo have created a car subscription offering that is truly best in class in terms of flexibility and price. With strong relationships with manufacturers and car dealerships, Karmo has figured out how to offer a flexible service at a truly attractive price compared to its competitors.
What happens if I’m late bringing my car back?
If something comes up and you contact Karmo in advance, then they will work with you to arrange an alternative date. But if you no-show without giving any notice, you will be charged at $75 per day until the vehicle is returned.
If I’ve been turned down for finance in the past, can I still subscribe?
Yes. Eligibility checks are not as rigorous for subscribing to a vehicle as they are for getting finance deals such as loans.
Is there a damage waiver?
Yes, but this is variable depending on the vehicle, and on your personal circumstances. In some cases, it may be $1000.
Is there an age restriction?
You must be over 25 to use Karmo.
Can I add additional drivers?
Yes. You can add up to two additional drivers. They must also pass our eligibility checks.
According to Karmo, their mission is to evolve the way cities move. With future plans to expand into car share schemes and other alternative mobility options, Karmo is excited to be offering alternative car subscription plans for private individuals as well as business and corporate packages as well. With a focus on including EV’s at attractive prices, Karmo looks set to be making an impact against its mission to evolve the way cities move.