Volvo Cars will let customers subscribe to a new XC40 SUV for $600 a month.
Courtesy of Volvo Cars
By Kirsten Korosec
November 30, 2017

Volvo Cars has joined a small but growing group of automakers to launch a subscription service that gives customers access to cars for a monthly fee.

The big difference with Volvo Cars’ new Care by Volvo service is that it’s nearly half the price of other services that have launched this year. The company announced Wednesday that its subscription service will allow customers to have a new XC40 SUV for $600 per month.

GM brand Cadillac launched a subscription service in January that lets customers—for a $1,500 flat monthly fee—drive whatever vehicle they want. Drivers can change vehicles within each month to meet their needs.

The Swedish automaker, which is owned by China’s Zhejiang Geely Holding Group, announced plans for the Care by Volvo service in September. But the company didn’t provide details about pricing until Wednesday at the LA Auto Show.

The idea, Volvo says, is to make having a car as easy as having a cell phone. In their view, this means customers can choose a car online and make one inclusive monthly payment that covers insurance, service, and maintenance. The subscription last 24 months. During that time, customers will be given the chance to change cars and sign up for a new 24-month subscription as early as a year into the agreement.

The 2019 XC40 will be the first car available via Care by Volvo. That could eventually expand. And, in some markets, customers will be allowed to swap or switch to different cars a few times a year.

For more on Volvo’s XC40, see Fortune’s video:

The subscription service will make two versions of the XC40 models available—both premium models with heated front seats, heated steering wheel, and panoramic roof. One version, the XC40 T5 AWD Momentum, comes with 19-inch black diamond-cut wheels. The other version, the XC40 T5 AWD R-Design, has a Harman Kardon premium sound system and 20-inch, 5-double spoke matte diamond-cut wheels.

Care by Volvo will feature 24/7 customer care and concierge services, including roadside assistance. Subscription customers will be covered under a premium personal insurance policy issued by Liberty
Mutual Insurance.

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