Car companies stand to make billions by charging you monthly fees...

[Kevin_D]

...for add-on features like heated seats.

I read this article the other day, and thought I'd share.

https://www.businessinsider.com/car-feature-subscriptions-add-ons-bmw-ford-toyota-gm-2022-2

Kevin

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[u-joint]

Unfortunately it's the "subscription" model everybody seems to love these days.

Who owns music anymore, just subscribe to spotify.
Who owns movies anymore, just subscribe to netflix/disney+/etc/etc
Who buys games/apps anymore, just plaster them with ads and in-app purchases.
Can't afford $1,000 for the latest & greatest iPhone? Just pay $30/mo forever and you'll always have the latest.
Don't want to walk 5 blocks in town? Rent a scooter.
Don't want to drive anymore, use an uber.

I'm sick and tired of this new economy.

 

[punk'n]

Consumers need to band together and not subscribe to any of these fees. Eventually, the manufacturers will have to change their plan of charging for these things -forever.

If I buy a vehicle, I want the features it has to be mine to use, just like the vehicle.

 

[In3briatedPanda]

carplay and android auto are soon to be pay for use on bmws. (rumor from a buddy at bmw starts later this year and i hope he is wrong)

Im sure every manufacturer will get there.

we already have guests who dont renew their enform and wonder why their remote start does not work.

its annoying they do this and i hate it the business model.

 

[TwelveGaugeSage]

Unfortunately it's the "subscription" model everybody seems to love these days.

Who owns music anymore, just subscribe to spotify.
Who owns movies anymore, just subscribe to netflix/disney+/etc/etc
Who buys games/apps anymore, just plaster them with ads and in-app purchases.
Can't afford $1,000 for the latest & greatest iPhone? Just pay $30/mo forever and you'll always have the latest.
Don't want to walk 5 blocks in town? Rent a scooter.
Don't want to drive anymore, use an uber.

I'm sick and tired of this new economy.

The difference between those and paying a monthly fee for features in a car is that most of the things you listed are improvements over how things were formerly done. I much prefer streaming my television to paying for cable or satellite tv. I still buy games, but there are some "free" ones I enjoy. I like walking, but there are times I wish I could rent a scooter to get where I am going. I've never used Uber, but I'm glad its there if I need it.

There is no way I would ever pay monthly for automatic high beams or heated seats. I like those features and have them on my Gladiator, but paying a separate monthly fee for those things makes zero financial sense. I don't mind paying for satellite radio, but that's not the same thing. If these companies want to do this, the only way I see it working for them is if they find a way to make it an improvement over buying them outright as we do now. I don't see how they can successfully do that outside of having the option to "subscribe as needed" OR "buy the option outright".

 

[u-joint]

I much prefer streaming my television to paying for cable or satellite tv.

That's still comparing one form of renting versus another. What about actually OWNING your own media. If you want a movie, purchase the movie?

I still buy games, but there are some "free" ones I enjoy. I like walking, but there are times I wish I could rent a scooter to get where I am going. I've never used Uber, but I'm glad its there if I need it.

But the point is that while you enjoy these things, others don't, for example...

There is no way I would ever pay monthly for automatic high beams or heated seats.

You yourself agree that (as a matter of personal preference) there are some things that are a bridge-to-far.

I don't mind paying for satellite radio, but that's not the same thing.

Is it not? You're still renting a service that you could have purchased - assuming you use satellite radio to consume music content and not talk-radio.

If these companies want to do this, the only way I see it working for them is if they find a way to make it an improvement over buying them outright as we do now. I don't see how they can successfully do that outside of having the option to "subscribe as needed" OR "buy the option outright".

But, see, that's the thing, none of what is offered in today's "rental economy" is truly offered as a benefit to the consumer. Sure, it's positioned that way, but in the end the consumer is locked into perpetual subscription with nothing to show for it if/when they choose to stop subscribing. Additionally, once subscription models in an industry take hold they will not continue to offer anything else - there is no financial incentive for them to, and we're already seeing the leading signs of this in the movie industry.

And, really, that's my point. I'm all for consumer choice, and I don't think any of these subscription offerings in our world are inherently bad, but I do know that the way they're evolving is inherently bad for consumers in the long run - and this is coming from someone whose making bank on it.

 

[Chris262]

You can still buy all of those things if you wanted... The problem is the consumer that doesn't buy them.

 

[TwelveGaugeSage]

And, really, that's my point. I'm all for consumer choice, and I don't think any of these subscription offerings in our world are inherently bad, but I do know that the way they're evolving is inherently bad for consumers in the long run - and this is coming from someone whose making bank on it.

I think are are in agreement on most of this stuff. If I want to own a movie, I will purchase it, which I have done for a few recently, but always digitally because I'm lazy and like that they don't take up physical space. Renting is easier than ever, but so is buying, though its a bit more pricey. You can still buy physical copies of things for cheaper, especially used. I really don't see much of a downside to streaming.

But the beauty of rentable scooters, Uber, and "free" games is that they are there if you want them. You don't HAVE to use them. And there are still plenty of scooters and games you can buy. I don't like rentable car features, but as long as the option is still there to own them outright, I don't really care. Hell, I don't even really care that much if they aren't. I can live without auto high beams and heated seats.

I consider satellite radio different because the only way it works is a subscription service unless they went to commercials, and then the only advantage over regular radio is more options on what to listen to.

But alas, of course nothing is offered at a benefit to the consumer. Businesses do what they can to make money. Jeep doesn't offer heated seats to benefit me, they do it to make more money. If they go away from offering non-subscription services for those of us who don't like falling into money pits, then yes, that's a bad thing. But I think there are just too many people who think like you and I to successfully do that. Even in the movie industry, you can still go to a theater or buy a physical copy.

 

[869 KPH]

You pay fees for ongoing services/software (xm), not for hardware (seats). That's an insane proposition. If I've paid for the hardware then I own it, plain and simple.

The only way this works is on something similar to a lease, where the platform has all of the options but you only get access to what you've 'unlocked' and then only for the term of the lease.

 

[TimC]

And the next step will be opening up this money-grab to competition. Who wants to compete to keep my ass warm in the winter? Don’t all jump at once !

 

[sharpsicle]

I smell Tazer-like modules being even more popular to unlock these "features". To try and lock out something so simple and so basic is such a waste of engineering. Thus the perpetual war between the mfg and aftermarket bypasses will continue forever.

What's so hard about building a product, selling it, and then moving on to the next product?

 

[NachoRuby]

You pay fees for ongoing services/software (xm), not for hardware (seats). That's an insane proposition. If I've paid for the hardware then I own it, plain and simple.

The only way this works is on something similar to a lease, where the platform has all of the options but you only get access to what you've 'unlocked' and then only for the term of the lease.

This will open up a lot of systems to legal limbo. Because since I own the hardware, am I legally allowed to unlock it? In other words, if a tazer or jscan like device opens the subscription features up, is that allowed? For the VW/Audi/Porsche family, there is OBDeleven. For us, there is Tazer/Jscan. I don't know if there's something similar for BMW, but there will be.

 

[Hootbro]

Consumers need to band together and not subscribe to any of these fees. Eventually, the manufacturers will have to change their plan of charging for these things -forever.

If I buy a vehicle, I want the features it has to be mine to use, just like the vehicle.

I am with you but I think it is point less in the long run. The current GEN Y (Millennials) aged 26-41 and early GEN Z that is aging in, have pretty much only know a subscription based model for a lot of what they already consume. Most cannot remember a time before the internet and social media. They will embrace this.

Only chance is us in the mid 40's and up who usually buy into more luxury brand and/or heavily option vehicle have a chance to push back on this but that will be maybe a 10-15 reprieve at best.

 

[869 KPH]

This will open up a lot of systems to legal limbo. Because since I own the hardware, am I legally allowed to unlock it? In other words, if a tazer or jscan like device opens the subscription features up, is that allowed? For the VW/Audi/Porsche family, there is OBDeleven. For us, there is Tazer/Jscan. I don't know if there's something similar for BMW, but there will be.

See: Tesla autopilot. The hardware is there, they charge like 10 grand to use it, right? IDK but I think so.

 

[sharpsicle]

I am with you but I think it is point less in the long run. The current GEN Y (Millennials) aged 26-41 and early GEN Z that is aging in, have pretty much only know a subscription based model for a lot of what they already consume. Most cannot remember a time before the internet and social media. They will embrace this.

Only chance is us in the mid 40's and up who usually buy into more luxury brand and/or heavily option vehicle have a chance to push back on this but that will be maybe a 10-15 reprieve at best.

I think you are confusing things a bit there. I do not see anyone in their 30's embracing subscriptions on things like heated seats or the like. Unless they can't afford the purchase, and this "subscription" allows them to get in at a lower price. But that is true of anyone regardless of age. Those who can't afford, subscribe. It's more about the financial stability of the person rather than what generation they're in.

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