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Volvo Promotes Dealerships for Service with Subscription Package

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Dec. 12, 2017—Volvo is looking toward an all-inclusive vehicle subscription service to boost dealers’ profits, which includes monthly payments that cover service and maintenance, as noted in a Charleston (S.C.) Post and Courier report.

Anders Gustafsson, president and CEO, informed dealers at the recent Los Angeles Auto Show that newly developed electric vehicles are likely to reduce customer service income by approximately 30 percent, and autonomous vehicles could reduce profit margins even further.

That belief helped inspire Care by Volvo, a new service in which consumers pick vehicles they want online and then make monthly payments that take care of service and maintenance, as well as insurance.

Prices start at $600 per month.

The program, which would eliminate the use of many third parties like tire retailers, has launched with the XC40 SUV.

The Care by Volvo package would include a 15,000-mile allowance that includes tire and wheel damage protection, and all factory-scheduled maintenance.

And, with the Care by Volvo package, customers would be granted a two-year period without having to concern themselves with coming up with a down payment.

Once the two-year subscription period ends, consumers could purchase the car or sign up for a different model, with Volvo reclaiming the old vehicle.

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