Volvo ended its Care by Volvo subscription program in August, Automotive Information (subscription required) has discovered.
This system was launched within the U.S. in 2017 and coated not solely the automobile but additionally upkeep and insurance coverage within the one month-to-month value.
Volvo now plans to return its focus to conventional gross sales and leasing fashions.
A spokesperson for the automaker advised Automotive Information that present prospects of the subscription program can stay in this system till the top of their contracted time period, after which Volvo will provide them a $1,000 credit score towards a brand new Volvo buy or $500 towards a lease.
Volvo hasn’t stated what portion of shoppers opted for the subscription program however a New Jersey vendor with two shops advised Automotive Information that round 10% of shoppers used this system.
This system turned worthwhile within the U.S. by 2020 and likewise helped deliver new prospects to the model, particularly within the youthful demographic, in response to Volvo.
Nevertheless, this system additionally blurred the traces with vendor franchise legal guidelines, because it was just like a lease in some ways. In consequence, Volvo in 2019 made this system extra versatile to distinguish it with leases, by permitting prospects to swap autos or terminate the subscription with out penalty after 5 months.
A number of different automakers supplied subscription packages, albeit as a trial solely. Solely Volvo made it out there on a everlasting foundation.
