Volvo has launched a monthly subscription service for new cars called Care by Volvo, following a successful trial in London.
Customers choose and buy online, with fixed monthly prices starting from £559.
The price is all-inclusive, bundling servicing, tyres and other wear-and-tear maintenance, roadside assistance and 10GB of in-car wi-fi per month.
Insurance can be added for an extra monthly cost, although Volvo says many UK customers will prefer to arrange this themselves.
After a 30-day initial trial, customers can cancel with three months’ notice, at no cost. There’s no sign-up fee and no fixed-term agreement.
The service is “perfect for uncertain financial times” said head of Care by Volvo, Conor Horne.
With no long-term financial commitment, those hesitating about taking on a three-year new car PCP can manage their risks without “paying to get out early”.
Volvo’s Magnus Fredin told Motoring Research he expected most customers to take out subscriptions for at least six months.
Care by Volvo: how does it work?
Potential Care by Volvo customers don’t need to visit a Volvo retailer: the entire process can be completed online.
All in-stock cars are listed, with expected delivery times (usually within a month), along with the option to configure a factory order (with longer delivery times).
Mr Horne says early evidence suggests three in four people prefer to choose a pre-configured car, “like buying a pair of shoes or jeans”.
Once an order is made, a local Volvo dealer handles the delivery, along with routine service and maintenance.
The local retailer is also on hand to help customers through the purchase process, although the deal itself is done directly with Volvo. The fixed monthly prices are haggle-free, too.
Volvo predicts up to 10 percent of customers could eventually choose the Care by Volvo subscription route.
The firm’s data reveals more than nine in 10 customers are new to the brand, and they are much younger than the Volvo average.
Less than one percent choose to switch their car – and less than five percent actually end the deal once the three-month post-trial period is over.
The only other car company to offer a vehicle subscription service in the UK is Jaguar Land Rover, with its Pivotal subscription product.