Karmo has partnered with Commonwealth Bank's Cars for CommBank marketplace, giving the bank's retail customers access to car subscriptions for petrol, hybrid and electric vehicles through the platform.
The arrangement introduces subscription-based vehicle access into a major bank's consumer channel. It offers a weekly fee model that combines insurance, servicing, maintenance, registration and roadside assistance in a single payment.
Karmo said demand for its subscription service has increased 500% over the past three and a half years. The company attributed the rise to customers seeking predictable motoring expenses and the option to switch or upgrade vehicles more often than traditional ownership models allow.
The Cars for CommBank marketplace lists vehicles from a range of partners. The addition of Karmo means more customers can now opt for a subscription product alongside conventional purchase and finance options.
Under Karmo's model, subscribers can choose from petrol, hybrid and electric vehicles. They do not take on a long-term loan. The subscription runs on a recurring basis and can be adjusted as customer needs change.
Karmo, based in Brisbane, describes itself as Australia's largest car subscription provider. It launched in 2019 and has focused on flexible access to late-model vehicles.
Nick Boucher, Chief Executive and Co-Founder of Karmo, said the agreement with Commonwealth Bank marks a shift in how financial institutions view vehicle access.
"This is the first real signal that a major Australian bank recognises the shift in how Australians want to access vehicles as an alternative to traditional ownership. Customers increasingly want flexibility and want to match their car use to their lifestyle, rather than commit to long-term finance," said Nick Boucher, CEO & Co-Founder, Karmo.
Boucher said the partnership places subscription alongside more established choices in the mainstream retail banking environment.
"This brings subscribers a mainstream alternative, offering greater choice, predictable costs and access to the car they want, without the need for long-term financial commitments," said Boucher.
Bank broadens offer
Commonwealth Bank has been expanding its automotive services as it looks to engage customers across the car purchase journey. Cars for CommBank combines listings, digital tools and finance options within one environment.
Paul Nicolo, General Manager for Consumer Lending at CommBank, said the bank is responding to customer interest in more varied ways to gain access to vehicles.
"We're always looking for ways to give customers more choice and flexibility when it comes to cars, whether that's using AI to provide real-time insights to help with decision-making, offering a wide range of vehicles to explore, or providing financing options for those who want funding support."
Nicolo said the integration of subscription-based access is designed to give customers an option that sits between short-term rental and full ownership.
"Expanding our car inventory to include subscription services adds another layer of flexibility, allowing customers to try a car and see if it suits their lifestyle before deciding whether ownership is right for them, without ongoing contracts, finance commitments or lock-ins," said Nicolo.
Testing electric vehicles
The partners are positioning the model as a bridge for households that are uncertain about committing to a hybrid or electric vehicle. Karmo said electric vehicle subscriptions allow customers to trial an EV and then either keep the same type of vehicle, return to petrol, or move between hybrid and electric as technology evolves.
Customers can experience an EV without entering a multi-year loan. They can switch between powertrains, upgrade when new models or battery technology are released, and avoid large upfront purchase outlays.
The companies said this flexibility could appeal to drivers who are curious about EVs but cautious about long-term ownership risks, including resale values and battery performance over time.
Target users
Karmo and Commonwealth Bank expect interest from several customer segments. These include expatriates and new arrivals who need rapid access to a vehicle, and young professionals and families seeking fixed weekly costs during a period of high living expenses.
The model also targets project-based workers and mobile workforces whose transport needs change frequently. It is likely to appeal to drivers who prefer newer vehicles and want to change cars regularly as hybrid and EV technologies improve.
The companies point to a wider behavioural shift in car use. They say more Australians now place value on cost certainty, flexibility and optionality, rather than viewing ownership as the default way to access a vehicle.
Karmo's growth figures remain internal and unaudited, but the company has recently gained recognition in business awards and growth rankings. It featured in the Deloitte Tech Fast 50 and SmartCompany's Smart50 lists, which track rapidly expanding Australian businesses.
The partnership with Commonwealth Bank's marketplace adds a national banking channel to Karmo's distribution. The company expects further demand as awareness of subscription models increases and more consumers reassess how they finance and use cars.