PebHmong Discussion Forum
General Category => General Discussion => Topic started by: theking on May 15, 2023, 07:19:39 PM
-
A monthly fee for heated seats? Car subscriptions are coming — whether Americans like them or not
Americans are more than willing to pay for add-on features for apps and monthly subscriptions like Netflix. But monthly fees — known as "features on demand" (FoD) — are now coming to their cars, which are connected to the internet and cloud in a dizzying number of ways. And in most cases Americans aren’t too happy about purchasing add-ons, especially when new cars are averaging nearly $50,000 off the lot.
A new study from Cox Automotive this week found that 75% of respondents agreed with the statement that “features on demand will allow automakers to make more money.” And 69% of respondents said that if certain features were available only via subscription for a particular brand, they would likely shop elsewhere.
Stay ahead of the market
This is a worrying trend for automakers counting on billions in revenue from subscription services, and they’re finding owners are already balking. But the automakers are pushing on.
“I think the general view is that this isn't going anywhere because most [automakers] have seen this as a significant revenue source and that's not just luxury brands,” said Alistair Weaver, editor in chief of the automotive research firm Edmunds, in an interview with Yahoo Finance. “GM has been very open about it; Ford is working on it. So this is the new frontier of how to generate revenue.”
A monthly fee for heated seats?
The BMW 3-series interior
The BMW 3-series interior
Recently, BMW caused a massive stir when it introduced subscription pricing for heated seats in its cars, when the option wasn’t purchased originally. The rub here is the actual heated seat is built into most BMWs.
Though this feature was only turned on in international regions and not the US, many BMW fans and auto enthusiasts were incensed at the prospect. The car comes with the feature built in — "Why should buyers pay just to turn it on after the fact?" was the most common complaint.
While automakers like Tesla have been utilizing subscription or features on demand for options like Autopilot and the more advanced full-self driving (FSD) beta feature, these are software add-ons that enhance the car, but aren’t really physical features that were sitting dormant in the car (though one could argue the chips, processors, and sensors on a Tesla needed for autonomy were already paid for by the owner).