Volvo Cars’ subscription service has delivered more than 2,500 cars in its first year of nationwide operation, representing almost 15% of all Volvo retail sales, equivalent to 7% of the brand’s total UK new car sales. The company originally forecast its Care by Volvo service would account for 5% of retail purchases and said enthusiastic customer response reinforces Volvo’s belief that the uptake of online sales will accelerate.
Volvo said it anticipates that the majority of its retail sales in the UK will be transacted online – both for retailer-assisted and direct sales – by 2025. Globally, Volvo expects all its sales to be conducted online by 2030.
Analysis of the service during the first year shows strong uptake of Volvo’s electrified models: one third (33%) of the subscriptions have been for Volvo Recharge plug-in hybrid electric (PHEV) models, while more than half (53%) of those for the best-selling XC40 compact SUV have been for plug-in hybrid electric or full battery electric (BEV) versions.
The company reported that Care by Volvo is proving a highly effective tool for conquest business, with 91% of its customers being new to the Volvo brand. The past year has seen Care by Volvo applications submitted during every hour of the day, with 1-2pm on Mondays the most popular time. The process’s user-friendly design has seen the quickest application completed in just 39 seconds.
Conor Horne, UK Head of Online Sales, said: “Our service is proving perfectly in tune with the changing preferences of customers who want a quick, secure and simple process to access a new car. And it’s clear they are also drivers keen to make the switch to the new generation of electrified cars we’re bringing to the market. The results confirm that the Care by Volvo subscription service represents the future of our retail business and is helping bring new customers to our brand.”
Care by Volvo offers two types of subscription package as an alternative to traditional car ownership. Care by Volvo Fixed provides cars on a three-year term, with no deposit or sign-up fee. Care by Volvo Flexible is based on an open-ended, three-month rolling contract, following an initial risk-free 30-day trial period; after that time, the customer can change their car or end their subscription with three months’ notice.
The subscription package covers scheduled servicing, wear-and-tear maintenance, vehicle tax, replacement tyres and roadside assistance cover. Customers can also opt to include vehicle insurance in their monthly payment.
