How Giving Away Free Towing to All Owners Will Make Volvo Millions

Volvo has just dropped some pretty substantial news as of late. It relates not only to the future owners of their cars but also the current owners. With a new program called “Complimentary Tow for Life,” Volvo owners will get a new perk. This means that anyone who owns a Volvo has access to free towing for the life of that vehicle. With machines dating back to the 20s, that’s quite the breadth of vehicles. From what we understand, Volvo doesn’t note any exclusions to the rule, either.

“It’s a commitment to all our customers that cars will be taken to experts who use genuine Volvo parts and repair methods,” said Scott Doering, head of customer service for Volvo USA.

He continues that the program is designed to make sure that customers know the job will be done right and fast. For those who are wondering where the catch comes into play, this is that part. Nothing in this world is free. Even though this system might make it look as such, there are underlying terms.

For those who opt out of service at the Volvo dealer, they’ll be on the hook for a tow. In other words, the vehicle has to be fixed by the dealer or that complimentary tow is no longer complimentary.

That’s right, it seems as if this is more of an attempt to get service done at a certified dealer more than anything. For those who were already on their way to the dealer for service, this is a pretty sweet perk. However, as most of us know, dealer parts and services tend to come with a premium that most would rather avoid. According to NADA, dealers see most of their profits in service. This branch of a dealer accounts for an average of 44%. With that in mind, free towing is a pretty smart move for the company. If I were a gambling man, I’d bet that either their margins are high enough to justify the tow or the prices might see a slight hike.