Just Like Underwear, Wine And Vitamins: You Can Subscribe To The Volvo XC40

By Daniel Miller
Los Angeles Times

WWR Article Summary (tl;dr) Volvo is now offering a subscription service to drive a car. It costs $600 a month for two years, or $700 for a more fully optioned R-Design variant. The monthly fee covers insurance, roadside assistance, repairs and scheduled maintenance.

Los Angeles Times

You’ve grown accustomed to subscribing to all manner of products and services: underwear, cosmetics, razor blades, coffee, music, wine, movies, charcuterie, vitamins, meal kits.

All of it can be had for a set-it-and-forget-it monthly fee. But could this same model, which has flourished in the internet age, work for a car?

Volvo is betting on it. It is the first car maker to offer a nationwide subscription service, Care by Volvo, which launched late last year. The company said this month that by 2025, it expects half of all cars it offers to customers to come from the subscription service.

The program’s opening offering is the 2019 XC40 sport utility vehicle, the smallest and least expensive of the Swedish automaker’s three SUVs.

It is the logical vehicle for the launch of the program. It’s a car that style-minded millennials and young parents, many of whom are already firmly ensconced in the subscription economy, are likely to consider.

It costs $600 a month for two years, or $700 for a more fully optioned R-Design variant. The monthly fee covers insurance, roadside assistance, repairs and scheduled maintenance. The price doesn’t include local taxes or registration.

In places where insurance rates are inordinately high, paying for an XC40 via subscription could be a better deal than purchasing or leasing the car.

Volvo isn’t the only auto manufacturer experimenting with subscriptions. Cadillac, Porsche, BMW and others also are dabbling in the space, albeit with pricier plans that are less widely available.

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