Volvo Offers New 24-Month Subscription Service
To coincide with Volvo Car’s new Volvo XC40, the luxury automaker is also launching its Care by Volvo subscription service.
Care by Volvo is a national subscription service with a ready-negotiated monthly fee that allows someone to get a new car every 24 months.
While it is unclear what connection Volvo Financial Services will have with the service — a Volvo spokesman declined to specify the backers of the program — Care by Volvo appears to be a hybrid model between subscription and lease.
Most other subscription car models allow customers to subscribe for a few weeks or up to a few months, minimum, while Volvo requires at least two years — which is often the minimum one can lease for. However, the 24-month subscription applies only to Europe, while the US market is looking to be less than 24 months based on market demands, a Volvo spokesman told Auto Finance News. But, unlike a lease, customers will not have to deal with down payments, insurance, taxes, service fees, and geographical or customer age-related differences.
Additionally, Care by Volvo offers digital concierge services like fueling, cleaning, service pick-up, and e-commerce delivery to the car. The service will be rolled out nationally in the U.S. and in seven European markets — Sweden, Norway, Germany, Italy, Spain, the United Kingdom, and Poland.
“We think Care by Volvo will be a big step change,” Thomas Andersson, vice president of global marketing at Volvo Car Group, said during a press event for the XC40’s unveiling late last week. Other Volvo models will be included over time, as will new digital concierge services, according to a company press release.
Care by Volvo sounds and looks reminiscent to General Motors Co.‘s Book by Cadillac, another premium subscription model from a luxury brand. Book by Cadillac launched a pilot program in New York City earlier this year, allowing users to subscribe for $1,500 per month without committing to financing or leasing, and users can switch between models.
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