Care by Volvo has been under fire but is the service finally good to go?
Just last week, Volvo's subscription service 'Care by Volvo' came under fire when dealerships claimed it violated state franchise laws in California. Dealerships claimed the service diverted sales away from them, thus violating state laws limiting the direct sale of vehicles to consumers. Tesla has dealt with similar complaints with its direct-to-consumer sales model because the United States heavily protects dealerships who have historically maintained powerful lobbying groups.
Volvo is taking the issue seriously and in less than a week, has come up with a fix. According to Automotive News, Care by Volvo will be completely revamped and will now include more of the automaker's vehicle offerings.
"We have built in all the components that would enable the dealer to spot-deliver a vehicle as a Care by Volvo vehicle," Peter Wexler, head of Care by Volvo in the United States, said. "We want to offer our retailers what we call the third option." This fix allows dealerships to offer a vehicle they already have on the lot as a Care by Volvo vehicle whereas previously, subscribers needed to order it directly from Volvo.
Volvo has also shortened the amount of time it takes for dealers to approve customers for the subscription service and issue an insurance policy. All Care by Volvo customers will now be covered under a group insurance policy, which will make the subscription process faster and easier.
Additionally, Volvo will add the XC60 and XC90 SUVs as well as the V60 CrossCountry wagon to the list of vehicles available. These three models will join the XC40 crossover and S60 sedan in the Care by Volvo fleet, though only certain versions of each will be available for subscription. If you are interested in Care by Volvo, which includes insurance, maintenance, and 15,000 miles per year, the prices go as follows:
S60 (starting at $700 per month), XC40 (starting at $700 per month), V60 CrossCountry (starting at $750 per month), XC60 (starting at $750 per month), XC90 (starting at $800 per month). All of these prices are listed for the base T5 drivetrain (or T4 for the XC40) but T6 and T8 models are also available on select models.