A Subscription Car Service — A New Model?

Innovation in services is definitely as important as innovation in products. Sometimes you may have a fantastic product, but it doesn’t get into people’s hands because you don’t have the kind of delivery system that you need.

Retooling the way in which you sell, as much as what you sell, may open up whole new markets. There may be people that cannot gain access to your goods if they are locked up in traditional models of ownership, so having alternatives is wise.

Sometimes, the gateways people have to pass through disqualify them, when they are perfectly able to afford something, they just maybe don’t have a history that demonstrates this. Having bad credit or a lack of fluid assets means the offer of such to help you afford things often dries up, while ironically, those with money, and likely in less need of borrowing, get offers all the time. Not to suggest that you don’t have to jump through these hoops to subscribe with Volvo, I merely suggest it as a possible extension or development of this notion.

Volvo brings you the XC40 for a flat monthly fee, and that includes insurance, maintenance, and service. Starting at $600 per month, that’s a pretty sweet deal, and then you can add in extras as you desire.

The flexibility that plans like this would bring into people’s lives can’t be underestimated. Though some people will still prefer to own their cars, $600 a month with bundled insurance is a deal that makes the use of a high end car a much more realistic thing for someone who might struggle to pay a car payment and insurance.

Having such a high quality and well maintained vehicle also cuts down on the potential time and money lost in breakdowns, and other issues which are attendant with more well-used vehicles..

Other kinds of vehicles might also use this model, and there are surely other types of product that usually require a large initial outlay, or are high maintenance, that would open up new markets by being available in this way. Volvo have a great reputation for making reliable vehicles, so there is that to bear in mind, when you look at how popular this service might be, but it definitely seems like it might be one to watch.