Volvo subscription service accounts for 15% of sales in first year
Volvo’s subscription service has delivered more than 2,500 car sales to the company in its first year of business, accounting for approximately 15% of Volvo’s total retail sales – exceeding the projected target of 5%.
The figures also showed a strong uptake of electric vehicles (EVs). One-third (33%) of subscriptions were for Volvo Recharge plug-in hybrid electric (PHEV) models, while over half (53%) of the subscriptions for the XC40 compact SUV were for plug-in hybrid electric or full battery electric (BEV) versions. The service is also effective at reaching new customers, with 91% of its customers being new to the Volvo brand.
Conor Horne, UK head of online sales, said: “Our service is proving perfectly in tune with the changing preferences of customers who want a quick, secure and simple process to access a new car. And it’s clear they are also drivers keen to make the switch to the new generation of electrified cars we’re bringing to the market. The results confirm that the Care by Volvo subscription service represents the future of our retail business and is helping bring new customers to our brand.”
Car subscription services are becoming increasingly popular with consumers wanting a more flexible model of car ownership. Care by Volvo has two types of subscription package on offer: cars on a three-year term, with no deposit or sign-up fee, or an open-ended, three-month rolling contract, following an initial risk-free 30-day trial period. After that time, the customer can change their car or end their subscription with three months’ notice.
The subscription package covers scheduled servicing, wear-and-tear maintenance, vehicle tax, replacement tyres and roadside assistance cover. Customers also have the option to include vehicle insurance in their monthly payment.
The service launched in the UK in September 2020.