Volvo’s new V60 wagon and S60 sedan are launching pads for the Sweden-based automaker’s new Care by Volvo subscription service in Canada, despite concerns among dealers.
The 24-month subscription, starting at $949 per month, includes the vehicle, maintenance, 24/7 roadside assistance, winter wheels and tires — including installation and storage — wear-and-tear, appearance and road-hazard protection, and concierge service. The plan also allows subscribers to upgrade to a new Volvo free of charge after 12 months.
Users can control their subscription via a smartphone app, including acquisition and delivery of the vehicle, whose title is akin to a lease.
Alex Lvovich, managing director of Volvo Car Canada, said there was some reticence among dealers to a subscription service, but they are now on board. “I think dealers understand this is the way of present and the future. They are a completely integral part of this process.
“We’re not claiming today that it’s going to replace [traditional sales]. What we’re saying is we want to offer customers flexibility to subscribe to the product in addition to being able to purchase it or to lease it.”
SALES TOOL TAPS VIN TO MAKE A DEAL
Canadian Black Book has teamed up with Mobility Sales Solutions to offer the U.S. company’s Vin-UP tool to auto dealers.
Vin-UP scans a customer’s vehicle identification number during a service visit and can generate a coupon giving the buy-back value for the vehicle based on CBB data, plus dealer and automaker purchase incentives.
The product aims to generate qualified leads for the sales department by offering to buy an owner’s vehicle, making the prospect of a new-vehicle purchase more attractive.
Dealers can tailor the program to particular model years and if customers are not ready to buy, the information would be kept in the dealer’s database for future use.
B.C. DEALERS LAG EV DEMAND
A report by Clean Energy Canada concludes the supply of electric vehicles at B.C. auto dealers lags well behind rising demand.
The nonprofit climate and energy think-tank canvassed 322 dealers with EVs in their model range and found only 40 per cent had one available for purchase on the lot.
Most cited wait times of three months to a year — some up to 18 months — for delivery. Fewer than one in five offered a referral to another dealer with available EVs. Only two-thirds knew about provincial EV-rebate programs.
The report comes as the B.C. government mulls a zero-emission vehicle sales mandate similar to those in Quebec and California as part of a revised climate action plan. It would require automakers to sell a set quota of EVs, which advocates claim will boost supply.