Care By Volvo was one of the first new car subscription services to launch. It offered a buyer an XC40 with a yearly allowance of 15,000 miles; maintenance, insurance, and a concierge service for either $600 or $700 per month for 24 months. But the service had some hiccups with various issues dealing with paperwork and not hearing back from dealers.
"The process was very, very stretched. We have learned that the process needs to be smoother, and also the process related to insurance and all the rules in all the states in this beautiful country ... we have learned a lot," said Volvo's North American CEO, Anders Gustafsson to Roadshow.
A key example is having a larger stockpile of vehicles allocated for subscribers. The entire Care by Volvo allotment of XC40s sold out in four months, causing Volvo to push deliveries of new XC40s through the service till next year. Gustafsson admits Care By Volvo is "far away from where we would like to be." But he believes the S60, the next vehicle to be offered through the service will be much smoother.
Roadshow also asked Gustafsson what's next for Care By Volvo. He revealed that it could be used cars.
A used-car subscription service "is probably 50 percent of the questions that we receive from our customers and from our retailers," said Gustafsson.
As for when something like this could appear, Gustafsson said it could happen within a year.