With the arrival of the 2019 Volvo XC40 in showrooms next spring, car shoppers will have a new option for payment.
Volvo is introducing a subscription-based payment system called Care by Volvo, and on Wednesday at the 2017 Los Angeles Auto Show we learned exactly what it will entail.
The XC40 is the first car available via Care by Volvo. The cost of the subscription starts at $600 per month and gets you behind the wheel of an XC40 T5 model with all-wheel drive, Momentum trim, and a number of other extras including 19-inch wheels. (Sportier R-Design trim will run you an additional $100 per month.)
The $600 monthly fee might seem steep for a compact SUV, even a luxury one, but that’s because it also covers insurance (via Liberty Mutual Insurance), all servicing, and maintenance costs. You also get 24/7 customer care and concierge services, including roadside assistance, thrown in. You’ll still need to pay for gas and any local taxes and registration fees.
There are some limitations, though. The minimum term of the subscription is two years, though after the first year you’ll have the option to swap to a new car by signing a new 2-year subscription. You’ll also have to drive no more than 15,000 miles year.
Once the contract period is up you hand the vehicle back. You then have the option to walk away or sign on for a new Volvo.
Only the XC40 is available via Care by Volvo right now, though the plan is to add every model eventually. And you can always buy the car outright or lease it if Care by Volvo is not for you. The starting price for the XC40 T5 is $36,195, including destination.
For more from the L.A. Auto Show, head to our dedicated hub.