Until recently, the only two ways to acquire a new vehicle were to purchase or lease it. But some automakers are now offering consumers a more innovative approach to the new-car shopping experience: subscription. To that end, Volvo's "Care by Volvo" program allows customers to enjoy a new vehicle with all-inclusive benefits, without any of the long-term commitments of ownership.
Care by Volvo is a flexible subscription program that offers a premium car user experience for one all-inclusive monthly payment. The signup process can be handled entirely online without any haggling because the price is fixed (depending on the model chosen). Currently, the new Volvo models available through Care by Volvo are the S60 sedan and the XC40, XC60, and XC90 SUVs.
The subscription cost includes vehicle usage, routine maintenance, certain "wear and tear" items, and other standard services related to vehicle ownership. Care by Volvo even covers auto insurance at a fixed amount, which means drivers don't have to pay elevated premiums for living in a high-rate area. For the most part, the only out-of-pocket expenses for the customer are the monthly subscription payment and fuel costs. Care by Volvo includes:
Care by Volvo is currently available for residents everywhere in the United States except California, Hawaii, Mississippi, North Carolina, North Dakota, New York, and South Dakota. Although other automakers such as Cadillac, Ford, and Porsche offer similar programs in certain areas, Care by Volvo currently enjoys the most comprehensive availability.
Care by Volvo includes factory scheduled maintenance services recommended at each 10,000-mile interval. Aside from oil and fluid changes and other parts replacement, this service includes wear items such as wiper blades, brake pads, and rotors. However, the program does not include normal tire wear. Tire replacement is not a covered cost unless it is due to excess wear at vehicle turn-in or in the case of a road hazard (see Excess Wear and Road Hazard sections below).
When a vehicle is ready for turn-in, it is subject to inspection for damages, large and small. However, Care by Volvo will waive up to $1,000 of excess wear. Damages could include large dents and dings to exterior body panels, windshield chips and cracks, tire replacement due to wear, and interior issues such as torn seats. Beyond the initial $1,000, financial responsibility for repairing additional damages defaults to the customer.
Volvo will repair or replace tires and wheels damaged by road hazards. Hazards include debris on the road, bad surface conditions, or anomalies such as potholes. Replacement occurs when a tire has an irreparable puncture and will no longer hold air. Normal road characteristics, such as curbs, are not considered road hazards.
A Care by Volvo subscription and a traditional car lease have several fundamental differences. While a car lease is generally a commitment of 36 months or longer, Care by Volvo comes with no long-term contract or term. A customer can cancel their Care by Volvo subscription and return their vehicle any time after the fifth scheduled payment. The customer can also keep their car for as long as they want; however, there is no option to buy as there is in a lease.
Price is another significant difference between Care by Volvo and leasing. The Care by Volvo monthly subscription price is typically much higher, starting in the $600 range, but includes numerous cost-saving benefits (maintenance, insurance). On the other hand, leasing a Volvo could cost as low as $300, but the buyer could be looking at a $2500-$5,000 down payment.
While a typical vehicle lease locks a customer into the same car for the entire length of the agreement, Care by Volvo allows them to upgrade to a higher model after 12 months. This benefit continues to become more appealing over time as Volvo adds more models to its subscription fleet. The Care by Volvo customer can also "borrow" other models from the Volvo lineup temporarily.
The Care by Volvo subscription includes an allotment of 1,250 miles per month. Unlike a lease, the subscription does not offer additional mileage to be purchased. If the driver goes beyond the 1,250 miles per month allotment, they will be charged an additional $.25 per mile upon vehicle turn-in. That said, if a customer drives over 1,250 miles in one month, they can always offset the overage by going that many fewer miles the next month.
Like with vehicle leasing, Care by Volvo customers must pay taxes and registration fees. These additional costs vary by state and are not a component of the monthly Care by Volvo subscription price.
In addition to borrowing vehicles from the Care by Volvo fleet, customers also receive access to a comprehensive range of concierge services. These services include taking the vehicle for a car wash, fill-up, or scheduled maintenance. As such, a Volvo rep will come to the customer's location, pick up the car, and handle the specific task, saving the customer precious time out of their day. But it's important to note these specialty services cost extra, over and above the monthly Care by Volvo subscription fee.
Care by Volvo is an all-inclusive alternative to vehicle ownership with a focus on convenience and flexibility. This innovative program gives car buyers a choice over the traditional purchase and lease experiences. For those wanting a premium new car experience without a long-term commitment, Care by Volvo may be a wise option to explore.
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