Excerpts from an article by Michael Taylor in Forbes
Sweden’s Volvo will bring a smartphone-style subscription plan to the car market in the US next year, months after it makes its debut across Europe.
In what it claims is a world first, the premium automaker will launch its XC40 compact crossover with a flat-rate subscription which either terminates after 24 months or simply rolls over into a new plan.
It’s a system that hints at a greater industry disruption every bit as fractious as electric cars, threatening to upend the traditional roles of new car dealerships, auto finance firms and, especially, insurance operators.
Far removed from its own, or the industry’s own, traditions of leasing cars, the Care By Volvo plan does not demand a deposit of any kind, has no age restrictions and its monthly payment includes all insurance, finance, tire changes and service costs, regardless of the driver’s state or even country.
“Our aim with Care by Volvo is to provide our customers with a transparent, premium car user experience,” Thomas Andersson, Vice-President of Care by Volvo, said.
“With a fixed monthly payment, Volvo Cars provides a truly customer-focused alternative to the traditional purchase or leasing.
“Time is a luxury for our customers, and with this service we are able to free up time in their daily lives. This is simply making life easier for our customers,” he said.
Read the full article in Forbes