Volvo’s Subscription Service Is So Successful That There’s A Wait List For XC40s

Volvo is enjoying higher-than-expected demand for its Care by Volvo subscription program.

The Swedish car manufacturer announced Care by Volvo alongside the XC40 crossover in November 2017. The program allows customers to subscribe to a new Volvo vehicle that bundles all car, insurance, and maintenance costs into a single payment varying between $650 and $850 per month for two years, which allows them to get a new ride after a year.

Fourth months after announcing the program, Volvo had sold all the subscriptions it expected to offer in the first 12 months. The company initially capped Care by Volvo subscriptions for the XC40 to 10 per cent of available vehicles but soon increased this to 15 per cent. New customers signing up to Care by Volvo for the XC40 have to join a wait list that stretches into 2019.

Speaking to Automotive News, Volvo Cars North America chief executive Anders Gustafsson said that Care by Volvo has tapped into certain demands from customers.

“It’s really the same concerns from everybody, and it’s just that they don’t feel secure. They’re afraid we’re going to take something away from them. … I would say the biggest question mark around subscriptions is that consumers need to decide that. Our retailers are asking, ‘Please let us be involved, because we can help,” Gustafsson said.

According to the executive, the car company is planning to increase the number of dealerships involved in the subscription program.

Word of Care by Volvo’s success comes shortly after it was confirmed that Cadillac would halt Book by Cadillac subscription service. Compared to the relative affordability of Care by Volvo, Book by Cadillac cost $1800 a month.

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  • EM1

    Too expensive!

    • Maximilian Norlande Rabbitt

      Considering what you’re getting, is it really?

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  • Dude

    It’s not just leasing. It covers everything except local taxes. Insurance, all maintenance, roadside assistance, and concierge services.

    • FoxJ30

      Covering insurance and maintenance is probably huge for people who are ‘owning’ a car for the first time. If one factors in $150/month for insurance, maintenance, and AAA, that drops the price of the car down to $500/month, which isn’t too bad to get a new car every year – for a $35k XC40, you’d have to pay that for nearly six years.

      I personally wouldn’t do this for a variety of reasons, but I know a lot of people who consider anything beyond calling an Uber too difficult – and this is for them.

  • Nordschleife

    I think at $650 it’s fantastic but those paying $700 and above it may not be.

  • Classic Bob

    Great concept and price point -considering all that’s included. I’d only hope Volvo gives an option of swapping it out in a year for something a bit prettier..

  • Trackhacker

    So dumb. Consumers are starting to treat cars like smartphones. Honestly these comlanies are beainwashing everyone into a scoiety where you always have to pay for everything and never actually own something. Have fun renting everything all your life.

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