June 20, 2024
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Volvo’s new car subscription service, allows you to drive a brand-new vehicle and bundles in maintenance coverage, roadside assistance, and insurance, has proved to be much more successful than the company expected. AutoBlog reports that Volvo has already sold its first-year projection of vehicles in the service’s first four months, resulting in a waiting list for the XC40 that now stretches into 2019.

The shortage comes just weeks after Cadillac chose to suspend its own $1,800-a-month subscription service after less than two years on the market. Reportedly, the service was discontinued because letting customers drive multiple cars each month was too costly.

Although it’s popular with customers, Volvo dealers have been less enamored with the service, which they believe could mean fewer vehicles being available for them to sell. Volvo’s North American CEO said that ex-subscription cars could make up some of this shortfall. But as increasing numbers of automakers from Lincoln and Porsche to Mercedes and BMW continue to trial such schemes, dealers are stepping up their lobbying efforts to avoid being cut out.

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