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Volvo’s SUV subscription plan starts at $600 per month — insurance included

Volvo’s SUV subscription plan starts at $600 per month — insurance included


Deliveries of the XC40 begin in 2018

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New Volvo XC40 - exterior
New Volvo XC40 - exterior
Photo: Volvo

Volvo announced back in September that it was wading into offering subscription models for its cars starting with the new XC40 compact SUV. This week at the Los Angeles Auto Show, the company finally revealed that those subscriptions will start at $600 per month over the course of a two-year contract — just like how you might buy a smartphone.

Care By Volvo, as the program is called, will start up in 2018, and that monthly price is all-inclusive, save for taxes, registration fees, and gas. Here’s what you get:

  • The all-wheel drive XC40 with a turbocharged 2.0 liter 4-cylinder engine, heated front seats, heated steering wheel, panoramic roof, 19-inch wheels, trimmed with Volvo’s “Premium” and “Vision” packages, which includes features like lane keep aid, collision avoidance assistance, and adaptive cruise control (a full list is visible here)
  • 24-hour customer service with roadside assistance
  • Factory scheduled maintenance
  • Tire and wheel damage protection, and “wear and tear replacements” on things like windshield wipers and brakes (provided you drive fewer than 15,000 miles per year)
  • Premium personal insurance provided by Liberty Mutual (there’s a $500 deductible, and it includes “$250,000 bodily injury protection per person and $500,000 bodily injury coverage per accident”)

Volvo is offering a $700-per-month option as well that includes the higher-spec’d R-Design version of the XC40, and adds 20-inch wheels and a Harman Kardon sound system. Both models will be made available in 2018 at all of Volvo’s US showrooms.

Much like the way some modern smartphone plans work (like Apple’s iPhone Upgrade Program, or AT&T Next), Care By Volvo subscribers will also have the option to trade in the XC40 for a new model 12 months into the subscription, which will trigger a new 24-month contract. As of right now, though, Volvo hasn’t said what other models it plans to add to Care By Volvo. And unlike a lease, you won’t be able to buy the car outright at the end of the contract.

Volvo’s not the first to test the subscription model waters. Earlier this year, Cadillac announced Book by Cadillac, which is a $1,500-per-month program that doesn’t require annual contracts and lets drivers swap the car they’re using up to 18 times per year. Porsche also launched Porsche Passport in October, where a $500 activation fee and $2,000 a month gets customers access to nearly a dozen models. Other companies around the world ranging from Audi to Ford to China’s Lynk & Co. are also piloting subscription models.