Turners to launch ‘Carly’ vehicle subscription in NZ

16 January 2020



Turners to launch ‘Carly’ vehicle subscription business in NZ

Commercial Terms Agreed for Launch of Vehicle Subscription Business (Carly NZ) In NZ
 Commercial terms have been agreed with Collaborate Corporation for the launch of Carly vehicle
subscription in New Zealand
 Turners has committed to supply 200 vehicles within six months of launch
 Turners will license the Carly brand and technology platform from Collaborate Corporation
 Scheduled for launch in late March 2020

Turners Automotive Group (ASX:TRA; NZX:TRA) is pleased to announce that it has agreed terms with
Collaborate Corporation Limited (ASX:CL8) for the launch of the Carly vehicle subscription service in New
Zealand. The agreement follows a $1 million strategic investment from Turners Automotive and an
exclusive negotiating period for the launch of a joint vehicle subscription service in New Zealand
announced on 2 July 2019. Today’s announcement confirms the successful conclusion of these
negotiations.
The investment and launch of www.Carly.co.nz is in line with Turners’ strategy to invest in opportunities
adjacent to its core automotive business. Carly’s platform approach looks to leverage vehicle inventory
from dealers and fleet owners which provides an opportunity for Turners to add value to its existing
customers and partners.
Turners has committed to supply 200 vehicles to the Carly fleet within six months of launch. These will be
sourced from Turners’ own stock and from partners. Carly is expected to launch in New Zealand in late
March 2020.
Todd Hunter, CEO of Turners Automotive Group, commented: “We are excited about the partnership with
Carly as we position Turners for the long term projected changes in the traditional retail car market. New
concepts such as vehicle subscription and car sharing are a part of the future and provide a new revenue
opportunity for car dealers and other industry players. This is an exciting opportunity for Turners to
participate in the rapid growth of the 'Sharing Economy' as it relates to transportation and changing
consumer preferences. We really like the industry inclusive approach Carly has taken in Australia and we
will mirror this in New Zealand.”
Chris Noone, Collaborate CEO, said: “Turners is the largest seller of cars in New Zealand and in an ideal
position to meet the needs of customers who prefer access over ownership. Turners has an unequalled
marketing capability and network of industry partnerships that will provide Carly with an excellent
opportunity to grow rapidly in New Zealand. We are privileged to be working with such a skilled and well-
connected management team.”

About Carly
Carly launched in March 2019 and is Australia’s first truly flexible car subscription offering. Turners is
planning to launch Carly in New Zealand in the first quarter of 2020.
The vehicle subscription concept is still new but is rapidly gaining in popularity. Not only does it offer
flexibility, variety, minimal commitment and an all-round simpler solution to vehicle ownership, the single
monthly payment covers all the usual costs of vehicle ownership, from registration and insurance to
maintenance and repairs.
Customers can choose and switch cars to suit their lifestyle and their needs. Carly will provide the
flexibility that many drivers and especially younger generations are now seeking - no long term
commitments, no upfront costs or loans to buy a car and the ability to change cars when you want. Whilst
the transition of consumers moving from buying vehicles to utilising vehicle subscription services is
expected to take time, the strong potential of car subscription is supported by the large number of vehicle
manufacturers and start-ups launching services in the USA and recent large investment by Softbank in the
sector.
Alternative vehicle ownership models are on the rise internationally, and vehicle subscription
programmes could account for nearly 10% of all new vehicle sales in the US and Europe by 2025. In
developed markets like the UK and the US, subscription-based ownership models have already crossed
10% of monthly household incomes, driven in large part by the benefits experienced by consumers such
as greater flexibility and a reduction in costs incurred including the purchase of vehicles, parking,
insurance, fuel and maintenance
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ENDS

About Turners
Turners Automotive Group Limited is an integrated financial services group, primarily operating in the
automotive sector www.turnersautogroup.co.nz

For further information, please contact;

Todd Hunter, Chief Executive Officer, Turners Automotive Group Limited Mob: 021 722 818
Media Liaison and Assistance: Jackie Ellis, Mob: 027 246 2505



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https://www.forbes.com/sites/sarwantsingh/2018/07/30/your-next-car-could-be-a-flexible-subscription-
model/#2ec7ac4f4ffa