Volvo Offers New 24 Month Subscription Service | Auto Finance News

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.

For more content like this, check out the 17th annual Auto Finance Summit, which will take place on Oct. 25-27 at the Wynn Las Vegas. To learn more about this year’s event — or to register — visit the Summit’s homepage here.

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