Currently reading: Care by Volvo subscription service to expand with XC60 and XC90
Two new additions set to join XC40 SUV, V60 estate and S60 saloon in the coming months
Tom Morgan, deputy digital editor
News
3 mins read
27 July 2018

Volvo is preparing to add two new models to its Care By Volvo subscription service, with the XC60 and XC90 set to join the platform “within the next couple of months”, according to UK managing director Jon Wakefield.

The service launched in 2017 with the XC40 compact SUV as the sole offering, and has since been expanded to include the recently launched V60 estate. The S60 saloon was previously confirmed to be joining the line-up over the summer.

With the addition of Volvo’s larger SUVs, the range will then include half of the company’s current UK model line-up.

Care by Volvo bundles the car payment, insurance, taxes, maintenance and roadside assistance into one monthly fee, with a subscription costing from £799 per month in the UK and requiring no initial deposit. Performance arm Polestar will be using a similar system for sales of the Polestar One, while Jaguar Land Rover, BMW and Mini have all launched pay-as-you-go subscription services of their own in recent months.

“The idea of people having a fixed monthly payment which is very clear, which is an honest price and covers all of your motoring needs is something we’ve been moving towards in the UK anyway,” Wakefield said.

“If you look in keeping with the marketplace, we’re almost 50% retail, and of that 90% is already done on a monthly payment basis, so we’re morphing towards it.”

The brand is aiming for 20% of its sales to use a subscription model by 2022, and 50% by 2025, according to CEO Håkan Samuelsson. Expanding the scheme to cover more cars is expected to help hit those targets.

“We’ve had a lot of interest, and there’s still a lot of work to do,” Wakefield explained. “The demand for XC40s has been so strong, we’ve perhaps not managed to maximise the launch of Care by Volvo.

“Where we’ve got to at the moment is at the base of a one- or two-year subscription with a package of servicing, collect and deliver, and insurance around it, and we haven’t necessarily pushed that into the marketplace as hard as we will do.”

While Care by Volvo targets the subscription model of ownership, the recently announced M Mobility brand will focus on app-based car sharing as an alternative to owning a car outright. It is due to launch in Sweden and the US in 2019, and will rival similar services from other manufacturers such as Volkswagen's Moia.

“I think the M piece is yet to be clearly defined. We’ve put out a statement that gives a broad definition, but ultimately there will be a dovetailing,” Wakefield said.

“We’ve work to do on both, but it’s really taking shape. I would see M as ultimate flexibility.”

Care by Volvo was originally planned to allow customers to share their cars with up to three friends or family members using a digital key, but that remains unavailable in the UK due to a lack of appropriate insurance policies. There’s no indication this stance will change in time for the XC60 and XC90’s arrival on the scheme.

Read more

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Will86 27 July 2018

Oh wait

Should have checked the Volvo website first, but you also get replacement tyres, connected service and a car exchange (so you get something bigger for a weekend). Still not worth it though. Will be interesting to see if Volvo issue any take up figures.

Will86 27 July 2018

What value does this service add?

An easy all in one payment sounds convenient but I'm not convinced it adds much value. Buy a new car and you usually get three years warranty and breakdown cover. Plus most manufacturers offer service plans, so just take one of those out. Then all you've really got to worry about is insurance and road tax, both of which are once a year matters to deal with, and road tax take only a few minutes to pay. So I'm struggling to see what extra value this service offers above an existing lease or pcp plan.

scotty5 27 July 2018

Financially viable?

Agree with xxxx. You're talking FROM £800 a month. So their basic car without any extras will cost £20k over two years.

Historically, Volvo have always been closer to the mainstream manufacturers when it comes to residuals (I should know, I've lost enough on three of them) but I've never lost anything like that. Over three years...

Scheme works on two levels - inside M25 and outside. Example used on website states V60 D3 Momentum costs £800 mth over 12mth and 10K. (Scheme run by Enterprise? It's only a car rental afterall). Of course you can buy the same car via an online broker for £27k. ( you can put down 50% deposit, 0%APR and it includes all servicing).

At the end of 3 years rental you're left with nowt. At the end of 3yr your left with a car worth say £12-£14k less your insurance costs.

And Volvo expect 50% of future sales to be rentals !!! 

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