Volvo Is Trying To Stop People From Actually Buying Its Cars

As hard as it may be to believe, Volvo has just commenced a campaign that’s trying to persuade consumers to not purchase its vehicles.

Why is that? Because it wants new customers to use the Care by Volvo subscription program instead of purchasing them outright.

In Germany, Volvo has launched an advertisement campaign that reads “Don’t buy this car. Subscribe to it.” To say that’s a bold message would be an understatement, but of all car manufacturers experimenting with subscriptions, Volvo is perhaps the best poised to make it work.

In the land of Audi, Mercedes-Benz and BMW, Volvo offers its subscription service for as little as €498 ($561) a month for the new XC40. Included in the subscription cost is insurance, taxes, roadside assistance and various other services, such as the storage of winter tires. For German customers wanting a mid-size luxury SUV, a new XC90 can be picked up in range-topping specification for €929 ($1052) per month, Bloomberg reports.

However, subscribing to a new Volvo isn’t without its downsides. Most importantly, a subscription is more expensive than leasing. Actually, it’s considerably most expensive, at roughly 40 per cent more. Additionally, only a minority of German consumers say they’re actually willing to subscribe to a vehicle. In the United States, just 14 per cent are keen on automotive subscriptions, according to a recent survey by management consultant Oliver Wyman.

Early data from the Care by Volvo service reveals that it is doing a good job in getting younger people into the brand’s models. During U.S. testing of the service, the average age was 40 years old, a decade younger than the brand’s usual customers.

It remains to be seen how sustainable subscription programs like Volvo’s will be in the long term, but the carmaker clearly thinks it’s on a winner.