Volvo announced its car-subscription plan, Care by Volvo, last year, but the service has been held up, frustrating some customers. Now it appears that hold-up has been regulatory in nature. Those issues have mostly been ironed out and subscribers are finally able to take delivery of cars through the service, Volvo said on Wednesday.
Speaking to The Car Connection, Volvo spokesman Jim Nichols said, "Care by Volvo deliveries are happening daily across the country." Only New York and Massachusetts haven't given the automaker a green light, but Nichols said final paperwork should be finalized "any day now." Paperwork seems to have been the major culprit in the delay due to a significant number of forms required in each U.S. state.
Volvo CEO Hakan Samuelsson hinted that insurance regulations may have slowed the process down since a flat monthly fee insures each car. "It's not something with the car. It's not something with the concept," Samuelsson said of the delay.
The service, one of the first of its kind, nets subscribers a 2019 Volvo XC40 crossover and includes insurance, maintenance, and wear-and-tear items for one flat monthly fee. The program extends 24 months and starts at $600 per month for the XC40. Volvo will also let subscribers swap into a different car after one year in the program, though the vehicle change restarts the 24-month-long subscription period.
Next up for the Care by Volvo program is the 2019 S60 sedan. The Swedish marque debuted the next-generation sedan at the grand opening of the company's new South Carolina manufacturing facility. The S60 will be the first Volvo built in the U.S., and the next-generation XC90 SUV will also be assembled stateside next decade at the same plant.
Volvo did not break down pricing for the S60 sedan, but it did say the Care by Volvo subscription fee will be $775 per month for a T6 Momentum trim. The S60 will join the subscription service by the end of 2018.