New Every Year: Care by Volvo
Volvo’s model for single-price, no-haggle leases is called Care by Volvo. For one price, to be detailed at November’s Los Angeles Auto show, the customer gets a national, flat-rate monthly fee, combined with the aforementioned opportunity to upgrade to a new car as early as 12 months. “Care by Volvo in the United States includes almost everything needed to own and operate a car such as maintenance, insurance, wear and tear items and protection services,” the company said in a statement. If BMW’s multi-year free maintenance is a guide, this includes windshield wipers and brake pads–virtually anything other than fuel and collision damage. Protection services might included pothole damage to low-profile wheels and tires and the suspension.
Volvo says there will be traditional leases as well, along with regular purchases. Still, it will be interesting to see if Volvo can convince dealers that “one price” means they shouldn’t tack on computer processing and office fees that can add $300-$500 to closing costs and don’t show up until you see the final paperwork.
Cadillac earlier this year announced the Book by Cadillac program for $1,500 a month, including maintenance and insurance, allowing you to choose and use a Cadillac Escalade, XT5 crossover, CT6 sedan, or V-Series performance vehicle. You pay $500 initiation fee and an accident deductible of $750, can drive any one vehicle for up to 30 days (5 days for V-Series), and make 18 vehicle swaps per year.