Volvo’s car subscription service, Care by Volvo, has delivered 2,500 cars to customers in its first year, accounting for 15% of all its UK retail sales.
The Swedish brand said this is “comfortably beyond” the initial 5% targeted for the service at the end of its first year.
Volvo said Care by Volvo’s performance reinforces its belief that online sales will accelerate with the brand anticipating 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 plug-in hybrid electric (PHEV) models, while more than half (53%) of those for the XC40 have been for plug-in hybrid electric or full battery electric (BEV) versions.
Notably, Care by Volvo is proving to be an 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 quickest application was completed in just 39 seconds.
Conor Horne, Volvo 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.
“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 packages
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 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.
Care by Volvo’s first year is being marked with the planting of one tree for each customer who has used the service.
Volvo’s sustainbility targets include reducing the company’s lifecycle carbon footprint per car by 40% between 2018 and 2025, having climate-neutral global manufacturing by 2025, and for at least 25% of the plastics used in every new Volvo launched from 2025 being made from recycled material.