The automotive industry is constantly evolving, and with it, the ways we access and “own” vehicles. Gone are the simple days of just buying or leasing. Now, Volvo, among other automakers, is pioneering a subscription-based model that promises a hassle-free and premium driving experience: the Volvo Care Program. But what exactly is it, and is it the right choice for you? This comprehensive review dives deep into the Volvo Care Program to help you decide if it’s the future of car ownership you’ve been waiting for.
What is the Volvo Care Program?
Volvo’s Care Program is designed to offer a transparent and premium car user experience, as stated by Thomas Andersson, Vice President of the program. Instead of traditional car ownership or leasing, it’s a subscription service. Think of it like subscribing to a service like Netflix, but for your car. You pay a fixed monthly fee and in return, you get access to a Volvo vehicle along with a host of included services.
Initially launched with the award-winning 2018 Volvo XC40, the program aimed to simplify car ownership by bundling everything into one monthly payment. Let’s break down the key elements of this innovative program.
Volvo XC40 Models & Subscription Tiers
The Volvo Care Program first rolled out with the 2018 Volvo XC40 T5 Momentum as the entry-level option. This wasn’t just any vehicle; the XC40 was already making waves as the 2018 European Car of the Year, Volvo’s first foray into the compact crossover segment. It boasts a distinctive design, highlighted by standard LED headlights and a modern, tech-forward interior. Inside, you’ll find a 9-inch touchscreen infotainment system and a 12.3-inch digital driver display, replacing traditional gauges. The XC40 is also praised for its versatile cabin, Volvo’s renowned safety focus, and a generous list of standard features.
The T5 Momentum trim, specifically offered for subscription, comes loaded with desirable features. This includes Volvo’s semi-autonomous driving assistance technology, a blind-spot information system, a rearview camera for easy parking, heated front seats and steering wheel for cold climates, a panoramic sunroof to brighten the cabin, and stylish 19-inch alloy wheels. Power comes from a robust 248-horsepower turbocharged engine paired with all-wheel drive as standard.
For those seeking a sportier edge, the 2018 Volvo XC40 T5 R-Design was also available through the Care Program.
The R-Design trim elevates the XC40 with an athletic package focusing on both aesthetics and performance. It includes a sport-tuned chassis for enhanced handling and R-Design sport seats for a more supportive driving experience. While engine power remains the same, the standard XC40 engine is already quick, achieving 0-60 mph in under 6.5 seconds.
Subscribers of the R-Design enjoy even more standard equipment. Building upon the Momentum trim’s features, the R-Design adds a premium Harman Kardon audio system for audiophiles, a 360-degree surround-view camera system for enhanced visibility, larger 20-inch alloy wheels, and active bending headlights. This advanced lighting feature swivels the headlights in the direction of steering, improving visibility around corners.
Care by Volvo: Pricing and Terms
The starting price for the Volvo Care Program with the 2018 Volvo XC40 T5 Momentum was $600 per month. Upgrading to the sportier R-Design trim increased the monthly subscription to $700. A $500 deposit was required upon ordering, but this was applied to the first month’s payment.
To understand the value proposition, consider traditional financing. Financing a Momentum model with comparable features through Volvo financing would have resulted in a monthly payment of approximately $690. The R-Design equivalent would be around $750 per month. Importantly, the Care Program subscription price is fixed for everyone, unlike financing or leasing rates which can vary based on credit scores and other factors.
The initial subscription term was set at 24 months, with a generous annual mileage allowance of 15,000 miles. This term is significantly shorter than the average new car loan term, which was around 70 months at the time, with some loans stretching to 84 months. Volvo offered even greater flexibility by allowing subscribers to switch to a different Volvo vehicle after just 12 months within the program. The 15,000-mile annual allowance caters to most drivers, as the Federal Highway Administration reported the average U.S. driver covers roughly 13,500 miles per year.
Care by Volvo vs. Traditional Leasing or Buying
At first glance, the Volvo Care Program might seem similar to leasing, but there are key distinctions. While the monthly subscription cost is higher than a typical lease payment – approximately $245 more per month compared to leasing a similarly equipped XC40 T5 Momentum – it’s crucial to look at the bigger picture. Traditional leases often require a substantial down payment, around $3,000 in some cases, which is not needed with the Care Program.
Furthermore, the Care Program is an all-inclusive package with benefits that go far beyond a standard lease. The subscription price includes auto insurance (through Liberty Mutual), routine maintenance, and 24/7 roadside assistance. This bundled approach eliminates the need to budget separately for these expenses, providing cost predictability and convenience. The fixed price, regardless of location, is another advantage, especially for those living in areas with high insurance rates.
The All-Inclusive Experience: Benefits Breakdown
The Volvo Care Program truly shines in its comprehensive nature. Beyond just providing a vehicle, it aims to deliver a premium, concierge-style experience. The signup process itself is designed to be seamless and can be completed entirely online, removing the often stressful negotiation process at dealerships. There are no hidden fees; subscribers only pay the monthly subscription and for fuel.
One of the most appealing benefits is the included auto insurance. Volvo partnered with Liberty Mutual to provide coverage, simplifying the insurance process and potentially saving subscribers money, especially those in high-premium states.
Flexibility is another cornerstone of the program. Unlike traditional leases that lock you into a vehicle for the entire term, Care by Volvo allows subscribers to upgrade to a different Volvo model after just 12 months. As Volvo expands the program to include more models, this benefit becomes even more valuable. Additionally, subscribers gain access to Volvo Concierge Services.
Volvo’s Concierge Services are designed to handle the hassles of car ownership. Need a car wash, fuel fill-up, or routine maintenance? A Volvo representative will come to your location, pick up your vehicle, and take care of these tasks for you. Volvo’s acquisition of “Luxe,” a premium valet and concierge service company, further underscores their commitment to providing a high-end customer experience.
The Future of Care by Volvo and the Competition
Volvo is continuously developing the Care Program, exploring new features to enhance the subscriber experience. One example is an e-commerce program being tested in Europe, allowing in-car delivery of online orders directly to the subscriber’s XC40. Volvo also plans to expand the program to include more models, potentially including certified pre-owned vehicles, and is exploring powertrain enhancements like diesel, plug-in hybrid, and hybrid options for the XC40 in the European market.
Since the launch of Care by Volvo, other automakers have also entered the subscription arena. Cadillac, Ford, and Porsche, among others, have launched pilot subscription programs. However, many of these are limited to specific cities or are significantly more expensive. Cadillac’s program, for instance, is considerably pricier, while Porsche’s subscriptions reach premium price points. Ford’s program, while more affordable, may not offer the same level of vehicle as the XC40.
Update: Volvo has expanded the Care Program to include additional models like the Volvo S60 sedan, offering T6 AWD Momentum, T6 AWD R-Design, and the high-performance S60 T8 eAWD Polestar Engineered versions at varying monthly subscription rates.
Volvo Care Program Review: Is It Worth It?
The Volvo Care Program presents a compelling alternative to traditional car ownership and leasing, particularly for those who value convenience, predictability, and flexibility. While the monthly subscription cost is higher than a basic lease payment, the all-inclusive nature of the program – encompassing insurance, maintenance, and concierge services – can justify the price for many.
Pros:
- All-inclusive monthly price: Budgets become predictable with insurance and maintenance included.
- Hassle-free experience: Online signup and concierge services simplify car ownership.
- Flexibility: Shorter terms and upgrade options offer greater flexibility than traditional leases.
- Premium experience: Access to new Volvo models and high-end concierge services.
- Fixed price: Pricing is transparent and not subject to negotiation or location-based insurance fluctuations.
Cons:
- Higher monthly cost than leasing: The all-inclusive nature comes at a premium.
- Mileage limitations: 15,000 miles per year may not be sufficient for all drivers.
- Limited model availability initially: Program started with XC40, though expanding.
Conclusion:
The Volvo Care Program is an innovative approach to car access that prioritizes ease and a premium experience. If you value convenience, desire a predictable monthly car expense, and enjoy driving a new Volvo with the option to upgrade, the Care Program is definitely worth considering. For those who prioritize the absolute lowest monthly payment and don’t mind handling insurance and maintenance separately, traditional leasing or buying might still be preferable. Ultimately, the Volvo Care Program offers a glimpse into a potentially significant shift in how we access and experience car ownership in the future.
