Car companies want to use a subscription model for car features previously simply paid for when you bought the car. The only thing I could see being worthwhile would be maps update on a built-in GPS, although Carplay and Android auto are largely making those obsolete. Some companies tried making Carplay access a subscription feature, I think it was Toyota, and got substantial push-back so they pulled back on that. Seeing as this is a relatively demand-inelastic good/service this could be huge. If all of them follow suit and make the same things subscription is that collusion? What if they started making safety features subscription, like collision avoidance, lane-keep assist or even air bags (maybe not the main airbags but side airbags or knee bolster airbags)? Could be something big down the road.
Almost all companies already have some things on subscription. I think it said BMW is charging $25 for adaptive cruise control or something. And this would be in perpetuity. So you have your car paid off and still pay maybe a hundred bucks a month for "features".
Being as this is potentially a hundreds of billions dollar add-on to an already bloated market where do you think this will go? Will the government get involved at some point? I could see consumer advocacy groups having conniptions over this.
How would you feel about paying $10, $20, or $100 per month to access features already built into your car? Some buyers are calling foul.
news.yahoo.com
