Research How does Volvo’s new subscription service compare with traditional leasing?

20:01  01 december  2017
20:01  01 december  2017 Source:   autoblog.com

3 ways the Volvo XC40 is a game-changer

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Volvo made waves at the LA Auto Show by launching its new Care by Volvo subscription service , an all-inclusive alternative to conventional leasing that

Volvo made waves at the LA Auto Show by launching its new Care by Volvo subscription service , an all-inclusive alternative to conventional leasing that

a red car parked on the side of a building© Sven Gustafson

Volvo made waves at the LA Auto Show by launching its new Care by Volvo subscription service, an all-inclusive alternative to conventional leasing that covers insurance, routine maintenance and service for a flat monthly fee starting at $600. It's similar to subscription services already offered by Cadillac and Porsche, though at a significantly lower price than both. And with its nationwide rollout, it's more comprehensive than the pilot program Lincoln plans to launch in parts of California next year.

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How does Volvo ’ s new subscription service compare with traditional leasing ? Compare these and other potential new vehicle purchases using our tool. Try Autoblog's Car Finder to search for your next new vehicle.

2019 XC40 - How does Volvo ’ s new subscription service compare with traditional leasing Volvo made waves at the LA Auto Show by launching its new Care by

We spoke to Volvo officials to find out how the subscription program would work, how it differs from standard, conventional auto leasing, and what the advantages and disadvantages are.

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How exactly will the subscription service work?

Volvo is using the 2019 XC40, its new compact crossover, as the first vehicle offered under the program, and in two models: the T5 Momentum, which starts at $600 per month, and the T5 R Design, which starts at $700. Customers can go to Volvo's website to make their choice and pick interior and exterior colors. But both models are optioned only one way: the Momentum with Premium and Vision packages, plus a sunroof and 19-inch wheels, and the R Design with those same features plus the Advanced Package, a Harman Kardon sound system and 20-inch wheels. Mileage allowance is 15,000 miles per year.

Care by Volvo, a new all-inclusive subscription service

  Care by Volvo, a new all-inclusive subscription service After BOOK by Cadillac and Porsche Passport , Volvo is launching their own vehicle subscription service. The Swedish brand made the announcement this week at the Los Angeles Auto Show, and Volvo Canada also confirmed the service would eventually be offered in our country. However, specific details and pricing have yet to be officialised.

Car Compare Volvo Way Financial Services Test Drive Events Fleet Sales Petfinder Foundation. Care by Volvo is a 24-month subscription plan, however, you can upgrade to a new Volvo anytime Care by Volvo subscription monthly lease payment of 0 for 24 months, based on ,445 MSRP

How exactly will the subscription service work? Volvo is using the 2019 XC40 its new compact crossover as the first vehicle offered under the Volvo made waves at the LA Auto Show by launching its new Care by Volvo subscription service an all-inclusive alternative to conventional leasing that

You enter all your information online and leave a $500 deposit, which goes toward the first month's payment, then pick up the car at either your nearest Volvo dealer or one of your choice when it arrives after several weeks (though the XC40 won't hit the market until next spring). Subscriptions go for 24 months, though customers will have the option of switching cars after 12 months and into a new, 24-month subscription, by which time Volvo anticipates offering more models under the program.

How does this differ from a conventional lease?

Aside from the $500 deposit, there's no down payment. And Care by Volvo, the company says, covers everything — monthly vehicle payment, maintenance (including oil changes) and wear coverage, including tires, brakes, wiper blades, road hazards, 24/7 concierge service and roadside assistance, plus insurance through Liberty Mutual. The policy features $250,000 bodily injury protection per person and $500,000 bodily injury coverage per accident, with a $500 deductible for both comprehensive and collision coverage. Volvo also says the flat rate covers expected damage repairs at the end of a subscription period, though how far that coverage will actually go remains to be seen.

Get your Volvo Fueled or Washed with a Mobile App

  Get your Volvo Fueled or Washed with a Mobile App Swedish brand Volvo has just recently added another feature to their connected car ecosystem. At least in the cities of San Francisco and Seattle—for now. As a matter of fact, Volvo owners in those urban areas, model years 2015.5 and up, can now order a fuel fill-up or a wash, …In collaboration with companies Filld and STRATIM, Volvo allows these users to get these two tasks done through a mobile application.

Volvo just launched a new subscription service for its cars — but it' s a bad deal for consumers. Matthew DeBord. Volvo is rolling out a new alternative to traditional car buying or leasing , called Care by Volvo .

New Volvo XC40 2018 review – has Volvo finally become cool? | 2017 L.A Auto Show : How does Volvo ’ s new subscription service compare with traditional leasing - Duration: 2:56.

Compare these and other potential new vehicle purchases using our tool.

Try Autoblog's Car Finder to search for your next new vehicle.

How do the costs compare?

For leasing customers, Volvo plans to offer the base XC40 T5 Momentum at $325 per month for 36 months with $3,000 down. (With no money down, that monthly rate climbs to $600 — the same as the subscription fee.) Looked at another way, over the 24-month subscription, you're spending $14,400 on a car that retails starting at $35,200. Compare that with with $14,700 total over 36 months for the conventional lease, including the $3,000 down payment but excluding insurance, maintenance and repairs.

Choosing metallic paint increases the monthly subscription rate slightly.

And with either form of lease, customers are responsible for taxes, titles and registration fees at the dealership.

Can you buy the car at the end of the subscription?

Yes, and it's priced accordingly, with depreciation factored in.

Will the $600 and $700 flat monthly rates go up with inflation, or as more expensive new models are added to the program?

It's certainly possible, but Volvo said it's too soon to know.

What's the verdict?

Ultimately, it will depend on the value you place on services like the 24/7 roadside assistance and covered maintenance, plus not having to worry about things like getting insurance and having that as an extra bill to pay. Volvo CEO Hakan Samuelsson also points out that the subscription program could prove lucrative to customers in urban markets who face high insurance premiums.


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