Fleet customers buying an S40 or V50 this year will receive the service plan free of charge, covering three years/60,000 miles.
Volvo believes it will cut maintenance costs and reduce monthly leasing payments by an average of £36 per month making the cars more competitive and positioning them on to the options lists of more company car drivers.
For £100, retail purchasers are offered a similar scheme over a three-year/36,000-mile period, worth an estimated £800.
They can choose to purchase the plan from dealers up to and including the first service, although it is initially on offer only until June.
Both plans cover parts and labour for scheduled servicing, including filters, oil, spark plus and brake fluid, and are transferable to subsequent owners. Wear and tear items like brake pads, wiper blades and tyres are excluded. Volvo is budgeting for 100% take up by retail buyers.
John Cleland, dealer principal at Cleland Volvo and Volvo dealer council chairman, says: “This is the best start to the year that we could have – it’s a very good deal that is 100% backed by the council. The package will help us sell more cars.”