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Volvo at the 2017 LA Auto Show a year ago announced Care by Volvo, a subscription model that offers a new take on traditional vehicle ownership. For $650 per month, you get a new Volvo XC40 crossover, 24/7 concierge service, tire and wheel road hazard protection, 15,000-mile annual allowance, factory scheduled maintenance (including wear items like wipers and brakes) at no charge, insurance through Liberty Mutual and $1,000 in excess wear and use protection when you turn the car back in.
Subscribers must sign a 24-month agreement but have the option to upgrade to a new model after just 12 months.
Basically, all you pay for is fuel.
The subscription service has turned out to be a huge hit for Volvo. According to a recent report from Automotive News, Volvo sold the number of subscriptions it anticipated for the first full year in just four months. As a result, there is now a wait list for the XC40 that extends into 2019.
Other vehicles are also part of the program although pricing varies.
BMW launched a similar subscription service earlier this year starting at $2,000 per month. Cadillac recently ended its subscription service, Book by Cadillac, due to a lack of interest. Perhaps its $1,800 per month price point had something to do with it.