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OEM subscription service Care by Volvo has celebrated its one-year anniversary in the UK and has delivered 2500 cars equivalent to 15 per cent of Volvo’s UK sales.

The Swedish brand said this was “comfortably beyond” the initial five per cent targeted for the service at the end of its first year.

It has also been well received in the United States, prompting Volvo to announce that the service indicates customers are comfortable with online conversations and that it now expects all its sales to be conducted online by 2030.

It said that Care by Volvo’s performance “reinforces its belief that online sales will accelerate with the brand anticipating that the majority of its retail sales in the UK will be transacted online – both for retailer-assisted and direct sales – by 2025”.

Volvo Car Australia told GoAutoNews Premium that subscription services was “an ongoing discussion and work in progress”.

VCA spokesman Greg Bosnich said Care by Volvo brought with it added benefits and services.

“An example is that with the introduction of the Volvo XC40 Recharge Pure Electric comes with a five-year unlimited-kilometre warranty, a three-year 100,000km service ‘wear and tear’ plan which includes wiper blades, brake pads and brake discs,” he said.

“It also has eight-year roadside assistance and an eight-year battery warranty. 

“We also offer a Volvo Cars app that among other features, allows for direct access to Volvo Cars Call Centre.” 

He said customers have an option to request for an insurance quote through Volvo Insurance as part of a bundled offer.

“With the introduction of our Google Android Automotive system we also look at expanding the app and connected services offer.”

The ‘wear and tear’ service is similar to that offered by Care by Volvo in some other markets.

In the US, the program to get a Care by Volvo car is a four-step online process of select, start, delivery and drive.

That gives users a new Volvo of their choice inclusive of insurance, maintenance, some on-road fees, replacement parts (wiper blades, brake pads, etc) and the ability to leave the program after five months.

It also allows the flexibility to change into another Volvo depending on how long the driver has been in the program.

Volvo said the program differs from a lease which is a long-term contract, normally three years. Care by Volvo doesn’t have that commitment and the subscription can usually be cancelled after five months.

In the UK, an analysis of the subscription service during the first year shows strong uptake of Volvo’s electrified models: one third (33 per cent) of the subscriptions have been for plug-in hybrid (PHEV) models, while more than half (53 per cent) of those for the XC40 have been for PHEV or full battery electric (BEV) versions.

Volvo said the service has also shown to be an effective tool for conquest business, with 91 per cent of its customers being new to the Volvo brand.

“The past year has seen Care by Volvo applications submitted during every hour of the day, with 1-2pm on Mondays the most popular time,” the company said.

“The quickest application was completed in just 39 seconds.”

Volvo UK head of online sales, Conor Horne, told AM Online that: “Our service is proving perfectly in tune with the changing preferences of customers who want a quick, secure and simple process to access a new car.

“It’s clear they are also drivers keen to make the switch to the new generation of electrified cars we’re bringing to the market. 

“The results confirm that the Care by Volvo subscription service represents the future of our retail business and is helping bring new customers to our brand.”

In other markets, Care by Volvo has two types of subscription package as an alternative to traditional car ownership.

Care by Volvo Fixed provides cars on a three-year term, with no deposit or sign-up fee.

Care by Volvo Flexible is based on an open-ended, three-month rolling contract, following an initial 30-day trial period; after that time, the customer can change their car or end their subscription with three months’ notice.

The subscription package covers scheduled servicing, wear-and-tear maintenance, vehicle tax, replacement tyres and roadside assistance cover.

Customers can also opt to include vehicle insurance in their monthly payment. 

In the UK, Care by Volvo’s first year is being marked with the planting of one tree for each customer who has used the service.

Volvo’s sustainability targets include reducing the company’s lifecycle carbon footprint per car by 40 per cent between 2018 and 2025, having climate-neutral global manufacturing by 2025, and for at least 25 per cent of the plastics used in every new Volvo launched from 2025 being made from recycled material.

By Neil Dowling

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