Karmo & Smart launch flexible novated car subscription in Australia

Karmo and Smart have partnered to introduce a flexible novated subscription offering a minimum term of four months, providing Australians with an alternative to traditional car ownership and financing models.

Flexible access

The new service is targeted at professionals, families, and organisational workforces who require mobility without committing to long-term loans or outright vehicle purchases. Under the arrangement, customers may subscribe to a vehicle for as little as four months, with one monthly payment covering insurance, servicing, maintenance, registration, and other common costs.

Novated benefits

The subscription is structured as a novated lease, allowing users to receive financial and tax benefits through salary packaging. Subscription payments are made pre-tax, reducing taxable income for eligible employees. Karmo and Smart present this as a straightforward solution for customers seeking short- to mid-term vehicle access while maximising take-home pay.

Broad vehicle range

Participants can choose from a variety of cars, including internal combustion engine vehicles, hybrids, and electric vehicles (EVs). This wide selection aims to cater for changing consumer preferences, business needs and sustainability goals. The inclusion of maintenance, insurance, and registration in a single payment is intended to simplify budgeting and remove the administrative burden from drivers.

Target audience

Karmo and Smart are positioning the product for individuals unwilling or unable to commit to a standard multi-year vehicle loan, as well as employers with a mobile or short-term workforce. The offering claims to address the challenge of workforce mobility, especially for businesses whose vehicle needs may change quickly.

Market trends

Market interest in flexible mobility solutions has grown as consumers look for ways to control costs and avoid long-term commitments. Subscription models, which require less upfront capital and offer rapid vehicle changes, have recorded increasing demand amid shifting attitudes to ownership. Karmo, according to the company, has seen subscriber growth of more than 500% over the past three and a half years.

Industry perspectives

"Car ownership in Australia is changing. For anyone who doesn't want to be locked into a five-year loan, whether they're professionals, families, employers or growing businesses, this partnership provides a smarter, more flexible alternative. By combining subscription and novated leasing, we're offering Australians a seamless, cost-effective and fully managed way to drive the car they want, for as long as they need, without the traditional financial burden or red tape," said Nick Boucher, CEO and Co-Founder, Karmo.

"Expectations around car ownership are shifting rapidly," said Sid Jha, Group Executive, Novated Leasing and Electric Vehicle Services at Smart. "Australians are looking for smarter, more flexible ways to drive the cars they want, for the time they need, while maximising their salary benefits. By integrating Karmo's subscription model with Smart's expertise, we're offering a fully managed solution that disrupts the old challenges of car loans and cash purchases."