Why we ran it: To see if Netflix-style subscriptions such as Care by Volvo provide a blueprint for the way cars are ‘bought’ in the future
Month 5 - Month 4 - Month 3 - Month 2 - Month 1 - Prices and specs
Life with a Volvo XC60: Month 5
Are subscriptions a realistic alternative to car buying? We tested a pair of XC60s via the Care by Volvo service to find out - 10 November 2021
Judge me at my worst, not my best. That sounds like a saying. If it’s not one, you can have it for free. In the case of Care by Volvo, the quality of service when something goes wrong, rather than when the going is good, is what really counts. All of which we’ll come to.
For the going was good when it came to the pair of Volvo Volvo XC60s we ran recently on our long-term fleet. Very good, in fact. To recap, Care by Volvo is one of an increasing number of automotive subscription services that make owning a car a bit like having an Amazon Prime or Netflix subscription. You pay a monthly fee and everything is included apart from insurance and fuel. There is no deposit, and the contract is a three- month rolling one with the first month a fixed grace period (meaning you can quit at the end of it should the car or service not be for you).
It’s also very easy to order a car: you can do it on the Care by Volvo website during the proverbial TV ad break, such is its speed and ease of use. The choices are simple: model, powertrain and colour. All cars come fully loaded with the option of adding a towbar or any extra miles over and above the annual 6000 allowance.
You need to pass a credit check, read the small print and tick a few boxes, of course, but that’s it. A helpful caller from Care by Volvo will then get in touch a few days later to tell you the contact details of the dealer fulfilling the order and when your car can be delivered for free or collected.
That’s quite a simple summary, I know, of what is an important and usually a long-winded decision- making process, but it really is that straightforward. In fact, it’s more like setting up a monthly dog biscuits order on Amazon than buying a new car. Welcome to 2021.
Our first XC60 was a T8 plug-in hybrid. It cost a base £899 with £15 a month on top for an extra 2000 miles a year. It sounds expensive as a headline figure. But remember, there’s no deposit. An XC60 T8 can be found for about £55,000 on a PCP. With a 10% deposit, an assumed residual value of 50% after three years and a 4.9% interest rate, a monthly PCP payment comes to around £770 over three years. Spread that £5500 deposit over those 36 months and you get a figure of just over £920 a month.
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So the best XC60 costs nearly £1000 a month which works out to £12,000 a year if you do 10k miles a year, no wonder they care.
Volvo on recovery flat bed, imagine the posts if it had been a Jag, imagine the cost if it was outside of the warranty.