HomeNewsVolvo Ends Vehicle Subscription for Leasing

Volvo Ends Vehicle Subscription for Leasing

user-avatar
Adrian
2024-11-09
321
Follow Cartea for car news

Volvo Ends Vehicle Subscription for Leasing

Volvo ended its Care by Volvo subscription program in August, Automotive News (subscription required) has learned.

The program was introduced in the U.S. in 2017 and covered not only the vehicle but also maintenance and insurance in the one monthly price.

Volvo now plans to return its focus to traditional sales and leasing models.

A spokesperson for the automaker told Automotive News that existing customers of the subscription program can remain in the program until the end of their contracted term, after which Volvo will offer them a $1,000 credit toward a new Volvo purchase or $500 toward a lease.

Volvo hasn't said what portion of customers opted for the subscription program but a New Jersey dealer with two stores told Automotive News that around 10% of customers used the program.

Volvo Ends Vehicle Subscription for Leasing

The program turned profitable in the U.S. by 2020 and also helped bring new customers to the brand, especially in the younger demographic, according to Volvo.

However, the program also blurred the lines with dealer franchise laws, as it was similar to a lease in many ways. As a result, Volvo in 2019 made the program more flexible to differentiate it with leases, by allowing customers to swap vehicles or terminate the subscription without penalty after five months.

Several other automakers offered subscription programs, albeit as a trial only. Only Volvo made it available on a permanent basis.

AdrianAdrian
Chief editor information:

Adrian is an Editor. Psychology graduate with over 4 years in the automotive industry, 3 in front of the camera. Occasionally seen at his family owned tyre shop. He will only buy cars that pass the big bottle test.

2024-11-09
321
previous: 2025 Cadillac Escalade IQ to Deliver 460 Miles of RangeNext: Ex-Polestar Designer to Lead Top BMW and Alpina Designs

Latest Cars

Xpeng Motors Xpeng G9
Xpeng G9AED 216,900 ~ 259,000Electric
Xpeng Motors XPeng G6
XPeng G6AED 165,900 ~ 208,900Electric
Yangwang Yangwang U8
Yangwang U8TBDHybrid
Haval Haval H7
Haval H7TBDGasoline

Popular New Car for Sales in UAE

Jetour t2  Gasoline
Jetour T2AED 146.0k ~ 154.7kSale: 5,373
rank
Nissan nissan-kicks  Gasoline
Nissan KicksAED 61.9k ~ 89.5kSale: 2,788
rank
Nissan nissan-sunny  Gasoline
Nissan SunnyAED 48.5k ~ 81.5kSale: 1,531
rank
Toyota toyota-fortuner  Gasoline
Toyota FortunerAED 114.9k ~ 175.8kSale: 1,448
4
Toyota toyota-hilux  Gasoline
Toyota HiluxAED 77.0k ~ 169.9kSale: 1,415
5