“Demand outstrips supply” for AGL’s EV subscription service
Energy provider AGL says its Electric Vehicle Subscription service has seen excellent traction since its November launch as “demand continues to outstrip supply.”
The initiative gives those considering an EV the opportunity to sample electric car ownership without the commitment of buying one. For $299 per week you can have a Nissan Leaf, Hyundai Ioniq Electric, MG ZS EV or Mitsubishi Outlander PHEV; a Hyundai Kona Electric is $359 a week and Tesla Model 3 $529 per week.
This try-before-you-buy approach, or “the Netflix of electric vehicles” as AGL calls it, is in partnership with car subscription service Carbar and EV charging supplier Jet Charge.
Tesla most enquired about
An AGL spokesperson told EVcentral the service was now delivering cars to customers on a weekly basis and it had grown its customer base by 50 percent in January.
The spokesperson said it was too early in the trial to reveal how many cars were already with subscribers, but said there were 150 customers on its waiting list. The AGL site says after you sign up, your car delivery is “usually in around 30 days.”
“Tesla is the most enquired about car, followed by the Kona and Ioniq,” the AGL spokesperson said. “Leaf and Ioniq are the most popular cars (to subscribe to) so far, but we’re starting to see interest in the small SUVs with the MG coming into the market with the Kona.
“We’re generally seeing interest from an older demographic of customers that are seeking a flexible second car option.”
When the service was announced last November it was initially only available to customers within 50 kilometres of Sydney or Melbourne. AGL said after “more than 300 expressions of interest” and “strong uptake”, Brisbane residents are now able to sign up too.
Interestingly, since AGL’s initial announcement, the weekly cost of the Tesla Model 3 has come down from $599 to $529 and the MG and Mitsubishi are new to the program. They also claim to be working on offering more types of electric vehicle as and when they become available.
Ideal for Queenslanders
Regarding expansion of its service, AGL Executive General Manager Future Business & Technology, John Chambers, said: “Queensland is home to the world’s longest electric super highway, which means EV drivers can travel with ease from Cairns to Coolangatta.
“We want to help customers navigate the shift to an electric vehicle and this service provides the flexibility to do so with the ability to swap, upgrade or cancel at any time.”
While the program can hardly be described as cheap, if you’re unsure whether an EV is suitable for your needs, it could be considered a reasonable investment before diving head-first into buying one.
Minimum subscription is one month, though you’re stung with a $150 cancellation fee if you subscribe for less than six months. Minimum cost would be $2245.67 for a Nissan Leaf or Hyundai Ioniq for one month; $2505.67 for a Hyundai Kona Electric, or $3242.33 a Tesla Model 3. All include a non-refundable $800 upfront fee.
The AGL EV Subscription website says only the Tesla is guaranteed to be a brand new car, while you’ll be subscribing to a used version of the others. These, AGL promises, are “in mint condition and with a low mileage.”
No strings attached
Positively, no down payment is needed, there’s no long-term commitment, no interest on finance and no depreciation costs. Things like registration, insurance, roadside assist, repairs, maintenance and tyres are included.
A qualified electrician will set up a home charger for you (also included) and deliver the car to your door and offer advice on driving and charging. There’s also the option to swap or upgrade your EV subscription while you’re paying.
An AGL spokesperson suggested COVID-19 had accelerated some people’s decision to move to the flexible subscription service, especially with supply issues in buying new cars.
“We got a lot of momentum across December and January – signs of of both strong economic tailwinds and also a shift in market sentiment – as new vehicle sales declining coincided with a greater shift towards a rise in interest and consumer appetite for EVs as a compelling alternative to buying a new car,” he said.
Feedback AGL has taken from customers is the no lock-in contract has proved an ideal incentive to those who otherwise may not have tried an EV before, and it was a great way to try an EV without worrying about uncertainty of the car market. This includes resale value and ICE vs EV regulations in future.
