Volvo Car Financial Services’ subscription model, Care by Volvo, is making an effort to increase its volume of users via a partnership with Fico’s Decision Modeler.
Care by Volvo, which operates in Germany and the U.S. — except New York — is looking to scale the subscription service across Europe and North America, the company noted. Volvo initially used online credit reference checks to onboard new customers to the subscription service during its pilot phase, which began in 2017. With Fico’s tool, Volvo is able to manage the “rules” behind its underwriting process and organize consumer data based on Volvo’s preferences, according to Fico’s website.
A number of OEMs — including BMW USA and Hyundai Motor Co. — have explored subscription services as a more flexible lease. Care by Volvo’s monthly payment, which includes a brand-new Volvo and covers all service and maintenance costs, starts at $700.
However, these services have come into question as being too costly for affordability-focused consumers. For example, in September Ford Motor Credit sold its subscription service, Canvas, portfolio to Fair. Also, at yearend 2018, General Motors Co. hit the pause button on subscription service Book by Cadillac, after launching two years prior in Los Angeles, Dallas, and New York.
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