Volvo tweaks Care by Volvo to add ease, convenience and options

A recent Roadshow article counted seven OEMs currently running subscription programs, Cadillac’s Book is rumored to return, and Jaguar Land Rover’s Carpe just launched in the UK Europe and perhaps headed this way. Care by Volvo is one of the oldest, launched in November 2017, and limited to the XC40 at the time. Volvo admits that the program’s been a learning experience, the automaker lately facing the new challenge of a California DMV investigation triggered by a petition the California New Car Dealers Association (CNCDA) filed. The Swedish carmaker remains committed to the format, though, with Automotive News reporting Volvo has added more available cars, and allowed dealers to pull cars off lots into the subscription program. Prices have gone up, too.

The program has run up to now with just the XC40 offered in two trims, either Momentum for $600 or T5 R-Design for $700. The new prices for those to models are $700 and $750, respectively. Joining the XC40 in the $700 price bracket is the S60 Momentum. Slotting into the $750 bracket come the S60 R-Design, XC60 Momentum, and V60 Cross Country Adventure. The XC90 takes the top slot, going for $800 per month in Momentum trim.

When the rest of the changes take effect, instead of making customers order through the site, the service will permit dealers to pull vehicles from their own inventory into subscription service. That move will help dealers recoup some of the loss from not financing subscription vehicles. Said Oklahoma City dealer principal Todd Bondy, “Subscriptions certainly erode opportunities for finance, but having a program like this might provide incremental revenue opportunities.”

Volvo will also streamline getting into the program, cutting the time it takes dealers to qualify and approve customers. The company’s reworked the insurance as well. Liberty Mutual has provided coverage so far, but the decision on insuring a driver was Yes/No, and if Liberty declined to insure a subscription applicant, the applicant couldn’t get into the program; it wasn’t possible to simply pay a higher rate or find another insurer. AN didn’t detail the insurance changes, but said that “a new group policy… will make it easier and faster to get insured.” AN said the overhauled program should come online October 1 with a trial run in New Jersey, followed by a national launch later this year. 

As for the issue in California, Volvo Cars U.S. CEO Anders Gustafsson said, “If we have done something wrong, we will change it. We don’t think we have done anything wrong, and it has never been our intention.” He believes the CNCDA is going after other automakers by going after Volvo. “We are such a small player. They are nervous that if we have a success with this, the really big [automakers] … will start to implement” similar programs.