Volvo Wants You To Buy Their Cars Like The Way You Buy Your Phones

Insurance and maintenance are all included

2y ago

45K

The way we have been buying smartphones for the past two to three years is having a big influence on how we might be buying cars in the future. The "subscription" based concept of paying a monthly fee for a set number of months for your phone and allowing you to upgrade the equipment when the next one comes out, is something Volvo is looking into with their "Care By Volvo."

It works like this:

The program starts with the 2019 Volvo XC40 compact SUV, and it will be available in the U.S., Sweden, the United Kingdom, Germany, Spain, Italy, Norway, and Poland.

The subscription program runs for 24 months with a 15,000 mile per year limitation. Just like Verizon's "Edge" or AT&T's "Next" phone buying program, "Care By Volvo" allows you to sign on to a new 24 month program after the first 12 months are up.

There is no down payment to "lease" the car, instead the program starts at a monthly payment of $600 (before tax and registration fees) and includes insurance and maintenance. Insurance is maintained by Liberty Mutual offering $250,000 bodily injury protection per person and $500,000 bodily injury coverage per accident. And a $500 deductible for both comprehensive and collision coverage.

- $600/month for: 2019 Volvo XC40 T5 AWD Momentum with Premium Package, Vision Package, heated front seats and heated steering wheel, panoramic roof and 19-inch wheels.

- $700/month for: 2019 Volvo XC40 T5 AWD R-Design with Premium Package, Vision Package, Advanced Package, heated front seats and heated steering wheel, panoramic roof, Harman Kardon Premium Sound and 20-inch wheels.

At the end of the 24 months, if your car is still in good condition, you get a new car.

A program for the younger generation

If you're male and under 25 then you know how much the car insurance world thinks you're the world's worst driver and are borderline uninsurable. Your insurance premiums might just be more than the cost to own/operate the car from a monthly payment's perspective. With Volvo's new car subscription program, the insurance is independent of who you are and where you're located. As someone who experienced his early twenties with soaring high insurance premiums, ~$300 (clean record, by the way), this program is an amazing idea for someone who's just starting out in their professional career.

The monthly cost of $600 might sound pretty steep for the under 25 generation, but given that it includes both the insurance and maintenance costs, and requires no down payment up front, this program will actually be cheaper than you'd think. It certainly will be a boon for Volvo. Not only will it foster deep brand loyalty, as subscribers will stay within the program to keep getting newer and newer Volvos, but it will also add value to their other services, like their dealerships, to keep their doors open.

In the end it all comes down to the buyers. Will a subscription model make you get into a car that you'll never own? Let me know your thoughts

Sources: Volvo, CNet, MotorTrend

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#volvo #xc40 #carebyvolvo #shiftinglanes

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Comments (12)

  • *sigh* The inevitability of this "business model" spreading like a massive, poisonous amoeba over everything is rather depressing. I don't want a contractual relationship with a massive corporation because it never is just a simple sum per month, is it? There's always a surcharge and an administrative fee and a waiver and tax and oh, just give us your bank card and PIN so we can just help ourselves.. Companies are obnoxious and I like to retain the right to call them a collective of obsessive onanists and tell them that the time has come to engage in self-fornication at whim.

    It's a bit like trying to buy anything from Currys/Pissy Whirled. "No, I don't want to give you my details, I don't give a fig about your warranty because I have statutory rights and an anonymous receipt is evidence enough of purchase. Just take this money, give me $THING and a till receipt and sod off out of my life." And they never get the message. You have to go through this rigmarole. Every. Single. Time. And they look at you as if you've just defecated through their letterbox, rang the doorbell and asked for some Andrex.

      2 years ago
  • We´ve had a similar thing here, in Czech Republic, for quit some time now. Some dealerships and car manufacturers provide a similar kind of service and you can choose pretty much any car you want. I started out with brand new Fiat 500 (monthly payment around 160 euros) and now I´m choosing between Bmw 3 or 4 series or Mercedes-Benz E Classe (I´m not an audi fan), but the selection of cars is vast. You can choose pretty much anything, from VW Up! to Ford Mustang and yes, you can even have the Volvos the article had mentioned. You can also choose for how long you want to have that car. It goes from 12 months all the way to 48 months and some manufacturers (e.g.Jaguar) even have a 60 months option. I honestly think´s that it´s better than buying the car on a lease.

    All in all, It´s so weird that we have something like that in a country where everything else is still in the 1970´s (at best).

      2 years ago
  • If this is true, then my wife will have one in 2020 when our current lease is up. Between insurance and monthly payments, including down payment, we're over $600 month for her car, and its not as nice as this.

      2 years ago
    • Are you in those list of countries? I would reach out to a dealer and get the ball rolling. I'm not sure how popular (or not) this program will be

        2 years ago
  • That is the only model Volvo is going to offer? I would not mind leasing out the XC60 Polestar

      2 years ago
    • This sounds like an experimental/limited rollout of the plan. I'm sure they may expand it to other models in the future if the program is successful

        2 years ago
  • They don't exactly got the smartphone business... First off the fee is for network services. Second, you own the phone. Are they going to pay for gas and oil change within this fee?

      2 years ago
    • You’re using Drivetribe’s alliteration of smartphone ownership to berate Volvo’s subscription model? That’s like comparing a restaurant meal to a sandwich then complaining that the restaurant don’t get the concept of food you can...

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        2 years ago
    • Sprint is doing phone leases in the states now... and you don't own it at the end of the term.. of course nobody has Sprint so it doesn't matter. also ATT and Verizon don't pay the electric bill to charge your phone. and according to the article...

      Read more
        2 years ago
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