VOLVO has become the first car-maker to start a vehicle subscription service in Canada in response to consumer demand for more flexible car ownership that it has experienced in the United States.

And Volvo Cars Australia has confirmed that it is watching the progress of the alternative ownership model very closely.

The move by the Sino-Swedish car-maker comes at the same time as Toyota has announced that it will launch a subscription car service in Japan in January called KINTO.

Observers are saying that KINTO is very similar to the Care by Volvo program in which subscribers will pay a monthly sum to have access to a variety of cars in the Toyota range as and when the need arises.

The monthly payment will include outgoings such as government charges and taxes, insurance and maintenance.

Volvo said the Care by Volvo program allows customers to use their mobile phone to “click, subscribe and drive” a new Volvo, and can put a person into a new Volvo in as little as 10 minutes.

Volvo Car Canada managing director Alexander Lvovich said: “Traditional models of ownership need to be challenged and that’s exactly what we’re doing with Care by Volvo.

“The subscription service combines the benefits of tomorrow’s technology with the everyday needs of people today.

“It gives more time for the things they love, fewer distractions, and a clearly defined and predictable cost. We’re proud to be the first in Canada to offer consumers a different way to own and enjoy a car.”

The program also offers services such as winter tyre installation and storage, roadside assistance and a concierge service to help assist subscribers through the ordering process.

The price of a subscription starts at $949 ($A1004) plus tax per month.

Volvo Cars Australia said it was watching the progress of Care by Volvo to see if it had benefits for Australian consumers but had not made any commitment to the program.

There are no car companies in Australia offering a subscription service, although Audi has said it is considering introducing its program, Audi On Demand, by 2020.

The subscription service concept is similar to a standard lease but its primary attraction is the ability for the customer to swap into different models.

A customer could have a sedan for spring, SUV for winter, ute for autumn and convertible for summer, for example, all provided by the same brand.

All the running costs are handled by the manufacturer, including registration, insurance and maintenance.

Payment is usually monthly. Because of all the bundled costs and the ability for the customer to change vehicles, the price for the service is much higher than traditional leasing.

The Canada example is equivalent to about $A1000 per month for the XC40 small SUV.

Other car-makers onboard in the US – which has become the global starting point for the programs – include Porsche and Cadillac. Lexus has said it will introduce its service in the US next month.

By Neil Dowling