Automakers are trying everything under the sun to turn a larger profit these days. Building and selling cars is no longer enough. Manufacturers now offer data plans, rental services, lifestyle products, and much more. One of the newest additions to their collective portfolio is the subscription plan — which yields customers a vehicle, insurance, maintenance, and other perks for a monthly fee.

However, as the concept is preparing to enter the mainstream market, the value of such programs have been called into question. While subscription services look like one-stop shopping, often providing users with the ability to swap models throughout the year, their cost effectiveness comes into doubt when one examines the bottom line. We’ve been skeptical for a while but Edmunds recently crunched the numbers to find out for sure.  (Read More…)

Volvo Cars is rolling out a subscription service that allows access to vehicles for a monthly fee. It’s a growing trend among luxury brands. Book by Cadillac is the first service to spring to mind but brands like Porsche and Ford have introduced regional pilot programs offering roughly the same thing. Volvo’s subscription service is not a trial run, however. It’s the full enchilada.

For $600 a month, Care by Volvo is offering access to its new XC40 — the new compact SUV that just started production in Belgium this month. Here’s how it works: Volvo customers choose a car online and make a monthly payment that covers insurance, service, and maintenance. The subscription last 24 months but, during that time, customers will be given the opportunity to change cars and sign up for a new 24-month subscription as early as a year into the existing agreement.

It’s an interesting alternative to leasing and a lot of outlets have praised the service for being so affordable, especially compared to Cadillac’s monthly subscription fee of $1,500. But the services aren’t directly comparable. Fist of all, General Motors allows customers to swap vehicles month to month. Secondly, those models are valeted to you and could have an MSRP in excess of $86,000.  (Read More…)