The future for new car ownership?

[safrane]

Took the family wagon for its yearly service at Volvo Cumbria yesterday. Whilst there, as you do, I looked at the new models and spoke to the sales team about upcoming EVs.

I was very surprised to be told that Volvo would not be selling the new cars outright and you could only get them on their subscription service 'Care by Volvo'.

Is this the future of getting a new car?

 

[tokyomb]

I think that is quite likely as an outcome for daily drivers / family wagons, and likely a transitional step towards fully autonomous self-driving cars, provided on a service basis (more like a taxi or hire car than the current ownership model).

That said. I think there will still be a place for outright ownership of 'special' cars for some time to come.

 

[bigbob]

Took the family wagon for its yearly service at Volvo Cumbria yesterday. Whilst there, as you do, I looked at the new models and spoke to the sales team about upcoming EVs.

I was very surprised to be told that Volvo would not be selling the new cars outright and you could only get them on their subscription service 'Care by Volvo'.

Is this the future of getting a new car?

I believe that is their aspiration but no more than that. I get it in that they can hide lots of charges and most people think on a price per month basis. I reckon it will fail as did selling mobile phone on a monthly rental basis.

One thing I have noticed with Volvo is that the XC90 (which I also have) is now not really sold with option choice. You now basically buy one of three trims and then choose the engine if they happen to offer it in that trim. Again I think I understand this but a premium product requires a degree of personalisation which dooms this to failure IMHO. At least with Audi I can pay extra for any colour from their back catalogue or your favourite pair of Tods etc.

 

[safrane]

Noticed this as well.

It's either black or white interior, a few paint choices and 3 models and of course the engine choice... funny thing is in all the other markets you can get almost twice the range of paint choices and leather colours esp in the US.

 

[bigbob]

Great car post looking at what a car forum should be talking about. However, on another channel on SM it’s turning into Pistonheads. Let’s talk cars.

 

[RodTungsten]

Took the family wagon for its yearly service at Volvo Cumbria yesterday. Whilst there, as you do, I looked at the new models and spoke to the sales team about upcoming EVs.

I was very surprised to be told that Volvo would not be selling the new cars outright and you could only get them on their subscription service 'Care by Volvo'.

Is this the future of getting a new car?

Isn’t this PCP in different clothing?

 

[safrane]

Isn’t this PCP in different clothing?

In a way, yes... but no option to purchase outright or at the end of the term... its just rental.

 

[gb-gta]

I guess someone has to actually buy it at some point, or do they take it back after a few years and rent it out again? Very odd. We’ll sell you a second hand car but not a new one?

 

[will-w]

Isn’t this PCP in different clothing?

It's closer to a fully maintained lease than PCP, and you can get out of the car with ~3 months notice.

It can even include insurance under certain circumstances.. It is literally "just add fuel" approach to motoring, which for a family wagon makes some sense.

 

[RodTungsten]

In the 2007 crash the recession and other things precipitated mortgage defaults on a large scale in the US and elsewhere, giving rise to the phrase “jingle mail” as occupants posted the house keys back to the banks, who were left with the problem on their books.

Now PCP is said to have a similar risk if or when recession bites - could be a worry as ~80% of cars are funded this way or are there market peculiarities which may prevent this. Discuss.

 

[gb-gta]

In the 2007 crash the recession and other things precipitated mortgage defaults on a large scale in the US and elsewhere, giving rise to the phrase “jingle mail” as occupants posted the house keys back to the banks, who were left with the problem on their books.

Now PCP is said to have a similar risk if or when recession bites - could be a worry as ~80% of cars are funded this way or are there market peculiarities which may prevent this. Discuss.

Heating, eating or pcp’ing? !

Trouble is i’d wager a substantial number on these pcp schemes won’t have enough savings to buy a 2-3k car to run about in to save their 3-500pm if they handed their keys back in……Not all of course, but a lot. Can’t save because they’ve got such high monthly outgoings…..