1. TechSpot is dedicated to computer enthusiasts and power users. Ask a question and give support. Join the community here.
    TechSpot is dedicated to computer enthusiasts and power users.
    Ask a question and give support.
    Join the community here, it only takes a minute.
    Dismiss Notice

Volvo's alternative to a car lease is this subscription model

By Shawn Knight ยท 9 replies
Nov 30, 2017
Post New Reply
  1. Swedish automaker Volvo at the 2017 LA Auto Show this week announced a new way to operate its vehicles. Dubbed Care by Volvo, the program is based on the subscription model made famous years ago by the wireless industry.

    For starters, Care by Volvo is not a lease program. Those differ in a few ways – for example, you can buy the vehicle after the terms of the lease expire. That's not the case here.

    For $600 per month (before taxes and registration fees), Care by Volvo will supply you with a 2019 XC40 crossover SUV loaded with options. There are no down payments required and no enrollment fees. At that price, all factory-scheduled maintenance is included, as is 24/7 customer care, a concierge service with roadside assistance and an annual 15,000-mile allowance that covers damage to tires and wheels as well as wear-and-tear replacements (things like brakes and wiper blades).

    Oh, and you also get insurance coverage regardless of your age or location through Liberty Mutual Insurance. The policy provides $250,000 bodily injury protection per person and $500,000 bodily injury coverage per accident. A $500 deductible applies to both comprehensive and collision coverage.

    Basically, all you pay for is gas.

    Note that you’ll be on the hook for a 24-month commitment although Volvo says there will be an option to change cars halfway through the term (if you’re willing to sign a new 24-month agreement, of course). That works out to $14,400 over the span of two years, far from the cheapest way to operate a motor vehicle.

    Interested parties can subscribe to the service via Volvo’s website. The first deliveries are expected to take place next spring.

    Permalink to story.

  2. wiyosaya

    wiyosaya TS Evangelist Posts: 3,001   +1,476

    I am willing to bet that any new models of car ownership that emerge will have the sole intent of putting more money into the bank accounts of auto makers.
    Reehahs likes this.

    IAMTHESTIG TS Evangelist Posts: 1,538   +649

    Well, this model works for most cell phone users. So it may work for vehicles as well. And just like phone plans it is a rip off.
  4. VitalyT

    VitalyT Russ-Puss Posts: 4,069   +2,481

    If you consider the 2-year worth in depreciation from new, then it is very close to being the cheapest.
    Reehahs likes this.
  5. JohnnieCanuk

    JohnnieCanuk TS Rookie

    Agreed. This is aimed as an alternative option for people looking to buy new.
    Reehahs likes this.
  6. Rippleman

    Rippleman TS Evangelist Posts: 870   +393

    uhmmm.... is there any other intent? people work for money.
  7. TheBigT42

    TheBigT42 TS Maniac Posts: 268   +148

    No the cheapest is to buy a two to three year old vehicle and drive it until the wheels fall off.
    Reehahs likes this.
  8. JamesSWD

    JamesSWD TS Maniac Posts: 253   +154

    Sooo...basically, a more expensive lease.
  9. Phr3d

    Phr3d TS Guru Posts: 404   +85

    Depends, the world has more than a few people / corporations that swap cars annually - if a Volvo can fit in that scheme and you now weigh against trade with 1 year depreciation & 15k miles it might be close.

    I'm the one mentioned above: buy 3-5 yr old vehicle and driven 'til the wheels fall off, ' car payment' goes into account to buy next car / repair current, but it's safe to say Volvo cares not a whit for my style, lol.
    Reehahs likes this.
  10. Reehahs

    Reehahs TS Guru Posts: 704   +442

    15000 miles seems a bit low amount for US, I manage to do similar amount in little ol' Britain.

Similar Topics

Add your comment to this article

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...