Here's more proof Care by Volvo doesn't make sense

"LJ909" (lj909) 04/08/2019 at 10:30 • Filed to: Volvo, Care by Volvo, Volvo S60

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Seriously. I don’t get how or why these companies keep pushing subscription services. Hell it probably makes more sense to rent the vehicle too. But the S60 is now the second vehicle offered in the Care by Volvo “subscription” service after the compact XC40 crossover. !!!error: Indecipherable SUB-paragraph formatting!!! . But the pricing for the S60 is CP all day. Here’s what you get for the money.

The S60 comes in 3 trim levels: Base Momentum, R-Design and top line Inscription. But with Care, you can choose between Momentum and R-Design.

The S60 Momentum comes standard with:

9-inch Sensus touchscreen with Navigation

12.3-inch Digital Driver Display

Smartphone integration

Harman Kardon premium sound system

Heated front seats

LED headlights with “Thor’s Hammer” daytime running light

Panoramic moonroof

Front and rear Park Assist with rearview camera

18” alloy wheels

The R-Design comes with everything the Momentum includes but adds:

Sport steering wheel with paddle shifters

Nappa leather sport seats with 4-way lumbar support

Dual integrated tailpipes

Glossy black window trim and rear view mirror covers

19" double open spoke black diamond cut wheels

You can subscribe online like you would normally build and price. So you pretty much choose which trim you want, choose your colors and you’re all set.

If you’re not familiar with Care by Volvo, its pretty much an all inclusive lease. Lets break down what’s included by the care subscription for those not familiar. And this is according to the info Volvo provides:

Upgrade to a new Volvo after only 12 months : And only after exactly 12 months. This one is kind of dumb considering that the Care lineup is only 2 vehicles. I don’ t see very many people going down to an XC40 from an S60. And unless you’re the type of person that just drives the newer version or a different color of the same model when you trade it, this wouldn’t be very appealing until they add more vehicles to the lineup for Care.

24/7 Volvo Concierge : Self explanatory

Liberty Mutual Insurance: This is the big one everyone was wondering about. The insurance coverage is included in the monthly subscription. And this is all through the info given through Liberty Mutual’s Care by Volvo Page:

Bodily Injury Liability: $250,000 per person, $500,000 per accident; Property Damage Liability $100,000; Comprehensive: $500 Deductible; Collision: $500 Deductible; Underinsured/Uninsured Motorist: $250,000 per person, $500,000 per accident; Required Medical Payments/PIP Coverage; Rental Reimbursement Coverage; Other state specific coverage’s as required by law

Factory Scheduled Maintenance, including wear items: Covers the first three services (10,000 miles, 20,000 miles and 30,000 miles) at no charge. This includes wear coverage replacement wipers, brake pads and rotors, allowing a worry-free subscription by eliminating maintenance expenses.

Tire and Wheel Road Hazard Protection: With Care by Volvo, we repair or replace unlimited tires damaged by road hazards, which include debris on the road or road conditions such as potholes. The wheel is covered when it cannot be balanced or will not hold air.

Excess Wear and Use Protection at vehicle return: With Care by Volvo, when your vehicle is returned we will waive up to $1,000 of excess wear and use. Coverage includes large dents and dings to body panels, windshield damage, tire replacement, scratched, gouged wheels and worn interior.

The price for this? The Momentum trim is $750 a month. The R-Design is a $100 more at $850. On the surface it looks good if you approach it from the view of pricing everything it includes out individually. But once you look at the terms, its not that great:

First months payment due at signing. Excludes taxes, title and registration fees of course.

24 month term

15,000 mile/ year mileage allotment

$0.25/mile excess charge

$500 refundable deposit: It really is refundable. With this being a depreciating asset, of course they run your credit. You get the deposit back if you decide not to go through with getting a vehicle through Care after you have made the reservation, if you don’t get approved by credit or if Liberty Mutual deems you not worthy enough for insurance.

The lease makes more sense, even if you have the larger down payment. Right now Volvo has a lease offer of $349/month for 36 months with $3,649 due at signing. They also have a $1,000 loyalty bonus as well. I even went so far as to get a quote from Liberty Mutual outside of the Care subscription. With the lease payment and the insurance quote I received, it still came out cheaper than Care:$526.08/per month. “We’ll you’re forgetting the inclusion of the maintenance and roadside assistance !” Seriously how much more can maintenance add on if you’re only driving 12-15 thousand miles a year? Unless the car is a piece of crap or you’re driving hard, that’s just oil changes.

So there you have it. If you want to drive the S60 by unconventional means, you’re going to have to shell out German like monthly payments for a car that I doubt is cross shopped that often with any of the other Luxury automakers. It would be a no from me.

Ash78, voting early and often > LJ909 04/08/2019 at 11:39

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I’ve never seen a company that simultaneously built really good cars, but also grasped at straws as much as Volvo today. I’m still not bullish on them here — their dealers all seem to have second- and third-tier locations, their marketing is almost nonexistent, and people mindpsace still doesn’t equate them with Mercedes the way Volvo really wishes (and prices their cars accordingly). It’s a shame, but it also speaks to how competitive and how safe all other cars have gotten in recent decades. Volvo has very little brand equity or competitive advantage left.

(side note: Have you ever looked around at how many late model V60 and XC wagons are available? It’s baffling. In some searches/areas, they’re 80% or more of the used offerings on Carvana, Autotrader, etc. And heavily depreciated.)

LJ909 > Ash78, voting early and often 04/08/2019 at 12:29

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Everything you said was exactly true. I appreciate their design and safety , but now better money is spent elsewhere. Acura gets mentioned before they do when comparing the popular near luxury and luxury mates.

I have noticed that. I think its mostly because Volvo is the only one still maki ng more than one wagon offering. But yea they take a big hit. I saw a V60 nearby, a 2017 with 36k on the odo for $18,450.

TheTurbochargedSquirrel > LJ909 04/08/2019 at 13:35

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It’s not supposed to look good to the customer. It’s supposed to look good on the surface so Volvo can separate suckers from their money.

KingT- 60% of the time, it works every time > LJ909 04/08/2019 at 15:15

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If those subscription prices are for the T5 (250Hp FWD/AWD) versions and not the T6 (316HP AWD) versions it’s an even bigger CP than it seems to be. Just lease the damn thing.

LJ909 > KingT- 60% of the time, it works every time 04/08/2019 at 15:42

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Exactly. Literally the only things they can sell you on with this subscription is the bundled insurance and maintenance . But like I pointed out, the mileage allotment is so low, you probably wont even take advantage of the maintenance outside of maybe 4-5 oil changes.