Subscription Based Car Purchase

I just saw the new Volvo XC40 and went to look more in to it and saw that Volvo is doing something like a subscription based model kinda like phone purchases. Will this change the lease game? :thinking:

Nice find. However, knowing Volvo, they will price the subscription at $1k out of the gate and then in 6 months, after the novelty wears off, the Xc40 will be leasing for $299 after Costco rebates … (See the S90 for examples)

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This is a new marketing/selling concept that has been growing in the last few years. The idea is you sell outcomes not products. GE does this with jet engines. You don’t buy an engine or lease an engine. You buy miles flown. So for example, Delta will but 500K miles flown on an engine for $X. And that $X includes all maintenance, repairs, etc. Delta doesn’t own or lease the engine, GE still owns it and provides an outcome (500K miles) to Delta, not the product itself.

Cars manufacturers are catching on. It’s not quite the same model, but it’s trending that way,.

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Wrong example. Sedans don’t sell, SUVs of any sizes do. But sure, there will be good deals on it.

Don’t expect the subscription model to be anywhere near hackr worthy.

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So what happens if Delta flies over 500k miles. Is there a 25 cent per mile penalty?

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Delta can pre-pay for additional miles in the F&I office. :grin:

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The Swedish website lists it at “From 6,699 kr” which is about $839 dollars a month. Personally I think it would sell like hotcakes for about $400-450/mo depending on miles and perks.

I like the fact that it includes maintenance AND insurance I want to see some official numbers when it hits the US.

First three are included on all Volvos, anyway

First reaction - old Jeep Compass’s back

compassxc40

Here are some good takeaways on the features… https://www.youtube.com/watch?v=sZmWzlEFM90

Has the shape but has more style/definition. I like it!

I like its design too, but this idiotic unused peace of metal kills it. Why not to have window go all the way down for more light, better visibility.

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Ah true didn’t even think about the window. I’m guessing they are hoping it’s overlooked and the panoramic roof is more focused on. I’m sure it won’t be standard on all models but I don’t know much about Volvo honestly.

Don’t expect it to be anywhere close to hacking a lease and shopping for auto insurance on your own. This is a gimmick designed to appeal to “convenience” aka lazy shoppers.

And you will lose the multi-car discount from your current insurance if you have 2 cars and switch to one of these.

I’ll bet large sums of money that the price of leasing this + insurance paid separately by you will be significantly less than the bundled price. But enough people will like the idea of paying thousands more to avoid a 10 minute phone call to their insurance broker to add a car to the policy, or 5 minutes doing it online.

The model is not new. Cadillac $1500/month program gives you 18 car changes per year. But it is expensive and only available in NYC.

Are there even 18 models to choose from?
But that is a pretty cool option to have. It’s like Cadillac ZipCar.