Volvo is trying out car subscriptions that are just like smartphone payment plans

Volvo is taking steps to embrace new technologies more aggressively than some of its peers, and that trend even extends to the way the Swedish automaker will market its vehicles to drivers.

The company officially released the terms for its previously announced Care by Volvo service, which offers consumers an all-inclusive lease on the new XC40 compact SUV. While car leases are nothing new, Volvo’s program is notable for how similar it is to how wireless companies sell expensive smartphones these days. 

Care by Volvo will cost $600 a month on a two-year-long contract (before local taxes and fees, that is) with a 15,000-mile annual allowance. There’s a clear incentive for customers to upgrade to a new model after just 12 months, just like their smartphones, although it’s not clear if they’ll only be able move up to the next version of the XC40 or select another model.  Read more…

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