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Thanks for your reply and welcome, Mike. I really am enjoying the car, so that helps make up for the financial ding. I finally reached an intelligent rep at Care by Volvo who seemed to want to help. He had to reach out to a different department and it sounds like up a couple levels to get an answer... which still was somewhat cryptic.

Seems there are two issues leading to the inflated payments in my case. First, in Chicago, we pay state and county taxes of 9.5% on vehicle leases.. and turns out the Subscription program is indeed a lease. That's compounded by the unfair Care by Volvo rule that they won't let you pay the taxes and things like license fees upfront.. so that is all lobbed into the monthly payment and then that number is taxed by the City of Chicago another 9%! That all translates to about 23% taxes and fees for someone in Chicago... Bottom line: Know your local tax rules on vehicle leases! Even worse in my case is that my last car was sold to a dealer for $24k. Had I traded it in and bought the XC40 outright, I would have saved all the sales tax on that amount.. so another $2300 lost by doing the Subscription.

I bear some blame not really thinking this through and pushing Volvo for answers before signing on the line. There was clearly some emotion involved in clicking in "order." But I'm frustrated with Volvo because this was supposed to be a no-nonsense, straightforward alternative to leasing or buying and it's actually been anything but. I did ask Volvo why my payment was so high before I took delivery and also at the time of delivery, but no one could answer. If Volvo had just said that it's because the Subscription is treated as a lease for tax purposes, I never would have done it. No one ever leases a car in Chicago because of the outrageously taxes and Illinois rule that trade-ins only reduce the sales tax basis on purchases, not leases.

Anyway..... the car itself is pretty great. I have a short list of things I hope they improve for it to really be worthy of the $46k sticker as ordered. I'd choose it again, but would purchase outright.

Jezza, thanks for the heads up with the taxes and fees. Wow, Volvo should have been upfront with the entire process but many people wouldn't have jumped on the Subscription service. I just didn't want the hassle that goes into buying a car, my current vehicle is 14 years old so this seemed like the way to go. I appreciate you taking the time to explain all of this. I will look into the taxes and fees here in NE for lease vehicles. My dealership rep did mention that state sales taxes would be about $600 but didn't mention anything else about other taxes and fees. Don't beat yourself up too much. It is a sweet vehicle! Take care!
 

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Yes, thank you for the tax/fee info. I have leased cars in California so tax is 'only' due on the value of a two year lease. With my Ford it was factored into my current lease monthly payment after the firrst year. At least there is no surprise. I did receive an email from Volvo corporate that 'my' XC40 has been loaded on a ship and on its way. Still looking at mid October delivery to me. Getting closer....
 

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Thanks for your reply and welcome, Mike. I really am enjoying the car, so that helps make up for the financial ding. I finally reached an intelligent rep at Care by Volvo who seemed to want to help. He had to reach out to a different department and it sounds like up a couple levels to get an answer... which still was somewhat cryptic.

Seems there are two issues leading to the inflated payments in my case. First, in Chicago, we pay state and county taxes of 9.5% on vehicle leases.. and turns out the Subscription program is indeed a lease. That's compounded by the unfair Care by Volvo rule that they won't let you pay the taxes and things like license fees upfront.. so that is all lobbed into the monthly payment and then that number is taxed by the City of Chicago another 9%! That all translates to about 23% taxes and fees for someone in Chicago... Bottom line: Know your local tax rules on vehicle leases! Even worse in my case is that my last car was sold to a dealer for $24k. Had I traded it in and bought the XC40 outright, I would have saved all the sales tax on that amount.. so another $2300 lost by doing the Subscription.

I bear some blame not really thinking this through and pushing Volvo for answers before signing on the line. There was clearly some emotion involved in clicking in "order." But I'm frustrated with Volvo because this was supposed to be a no-nonsense, straightforward alternative to leasing or buying and it's actually been anything but. I did ask Volvo why my payment was so high before I took delivery and also at the time of delivery, but no one could answer. If Volvo had just said that it's because the Subscription is treated as a lease for tax purposes, I never would have done it. No one ever leases a car in Chicago because of the outrageously taxes and Illinois rule that trade-ins only reduce the sales tax basis on purchases, not leases.

Anyway..... the car itself is pretty great. I have a short list of things I hope they improve for it to really be worthy of the $46k sticker as ordered. I'd choose it again, but would purchase outright.
Same thing happened to me. Ordered a $600 subscription plan and when it came down to it was quoted 712.25 a month. I feel Volvo definitely dropped the ball to mention that this will be treated same as lease and not mention the addl cost in some states. They wanted this to be a modern, hassle free subscription but its not being upfront on information that they are fully aware of. I for one never have leased so why would i have known this. They should stop calling it a subscription plan because its really an enhanced lease. If i would have known this i would have purchased it outright or took my time to look for another vehicle.
 

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Dealing with the Care by Volvo customer service team is so painful. They seem to have no idea what is going on with regard to the costs and delivery schedule and take a long time to respond. It's sufficiently bad I wouldn't recommend this program to anyone new.

Ordered in May, delivery maybe sometime in December. $631 per month.
 

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It seems a lot of the problems are caused by the incompetence of the Volvo USA team, rather than production/shipping issues.

In my case, I had the following schedule:

5/31 ordered
9/28 delivered to shipping terminal
10/08 loaded on ship
11/01 cleared by US customs in CA
11/05 delivered by shippers to Volvo USA
11/06 Volvo USA gives me the VIN
11/13 I ask Volvo what's going on
11/17 I ask again
11/20 They send me incorrect pricing on fees/taxes etc. ($541/24 does not equal $31). I ask them to explain - they can't.
11/21 I decide to argue later and tell them go ahead.
11/27 They ask me to approve the pricing again and I approve again.
11/30 They ask me to start the credit process and tell me all the paperwork must be completed before the vessel can be released from the port. The shipping company confirms it was already released on 11/05.
11/30 They estimate 19 business days from port release to delivery in Oregon.

I hope the car is better than the sales team!
 

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Sorry you're also having trouble, Eugene. As you can read from my earlier post, I also had similar frustrations with the communications. One Volvo rep I talked to actually apologized and said their team just wasn't getting information from higher up and other units tasked with things like calculating payments. So far my experience and view of the Care by Volvo / Subscription program is that it's a near total failure. Nice concept but wasn't worked through to a marketable level in my opinion. We early adopters are pretty clearly test mules; unfortunately that seems to be at our expense.
 

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Finally

Did anyone get the XC40 via care by volvo program delivered yet?
Just picked up my Care by Volvo R-Design on January 11, exactly 7 months after I placed the deposit. The first subscription handled by this dealer, likely one of the first in New York State, which had not authorized this program until late November.

Some rough patches in the subscription process for sure as Volvo works out the wrinkles, I trust. But the car so far is all I hoped for.

Alan
 

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My car was the first Care by Volvo R-Design transaction and despite the long wait (8 months to the date ordered) the paperwork portion at the dealership was a breeze. The paperwork signing/payment of remaining balance all took about 15 minutes. I already knew everything about the vehicle, so my service rep synced my phone, showed me a few other things about the vehicle and I was in and out in about 45 min. The insurance portion was the most pain for me. I gave them the info they needed about three time before it finally was processed. Would love to see them add more vehicles to the program (XC90).
 

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Hi all, I just put deposit for CBV R-Design. I have a question though, both my wife and I will be driving the car, does the insurance included in CBV cover both of us? Also, what kind of wait time should I be expecting now? My S3 lease ends end of April, so I might be without a car for a little while (hopefully), I'll also see if I can extend my current lease for a bit.
 

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Not sure about wait times, but you should be OK on insurance.

The CbV subscription is in my name alone, but the insurance is in both my wife's and my names--no problem (except they misspelled our names first time around).
 

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Hi all, I just put deposit for CBV R-Design. I have a question though, both my wife and I will be driving the car, does the insurance included in CBV cover both of us?
Based on my experience, as you near your delivery date, you will be notified to follow a link to apply separately for insurance with Liberty Mutual, and can specify the drivers at that time.
 

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I asked Liberty Mutual this specific question "If my son drives my XC 40 to lets say get some groceries etc. would he be covered?" Their answer is definitely yes. As a matter they said whoever drives the car is automatically covered. However, they did say if this is going to be a regular or routine thing, they would like that individual added to the policy.
 

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Here's the timeline so far on my CBV R-Design order:

2/1/19
Web order placed

2/1/19
Received Your Volvo order [order number] is confirmed email

2/2/19
AMEX $500 deposit charged

2/4/19
Factory confirmed order, ETA mid-May

2/28/19
Received email with mid-March production and late-April delivery

3/13/19
Got VIN, filled in Liberty Mutual insurance application
 
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