Volvo Subscription Plan Offers Drivers An Alternative To Buying Or Leasing

Volvo Subscription Plan Offers Drivers An Alternative To Buying Or Leasing
Automotive

The Swedish automaker's S60 Sedan will be available under its subscription plan, Care by Volvo, aiming to increase value to customers by providing them with a vehicle as well as continuous support and service for a monthly fee

Todd Neikirk
  • 26 october 2018

Like many aspects of the retail sector, the car buying process has been turned on its head in the last few years. Volvo has had a hand in that evolution, creating a subscription package model, a growing tactic for brand growth as highlighted in PSFK’s recent Future of Retail 2019 report, for customers that will now include the brand’s anticipated S60 sedan as the second vehicle available in the offer.

Customers in the U.S. and Canada are eligible for the Care by Volvo service, which bundles vehicle access and related services into one flat monthly fee, with no down payment. The nearly all-inclusive service includes the lease on a car, insurance, service, wear and tear, and roadside assistance—essentially everything except the fuel.

The S60 has multiple options that can affect the price point, including horsepower and whether the car is standard, hybrid or electric. The car is also manufactured in Charleston, South Carolina, making it the first American-made car for the company. While the car will be available in showrooms, many subscribers never make it into the dealership. The automaker claims that, “50% of Care by Volvo customers picked their XC40 via mobile and 95% of Care by Volvo subscribers are new to the brand.”

Volvo is doubling down on its Care subscription plan, as it has been embraced by the marketplace. Furthermore, the convenience of the package strives to create brand loyalty with consumers who have not purchased Volvos in the past. Volvo is not the only one to drive engagement with a subscription model—Cadillac and BMW, too, have debuted similar plans, an increasingly popular strategy outlined in PSFK’s recent Future of Retail 2019 report.

Volvo


Lead image: Volvo via Instagram

Like many aspects of the retail sector, the car buying process has been turned on its head in the last few years. Volvo has had a hand in that evolution, creating a subscription package model, a growing tactic for brand growth as highlighted in PSFK’s recent Future of Retail 2019 report, for customers that will now include the brand’s anticipated S60 sedan as the second vehicle available in the offer.

+app
+Automotive
+Banks
+Delivery & Logistics
+future of retail 2019
+Insurance & Financial Services
+loyalty & membership
+mobile
+packaging & product engagement
+post purchase support & service
+rental
+retail
+subscription
+volvo

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