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Automotive Pay to Play<br />
By: BJ Killeen / Down the Road<br />
Driving a car was a lot less expensive way back<br />
when. And the way back when I’m referring<br />
to is only a decade ago.<br />
This time, though, the cost isn’t related to vehicle or gas prices.<br />
I’m talking about what manufacturers are doing with new vehicle<br />
subscriptions. It’s similar to your cable<br />
company giving you the basics, but charging<br />
extra for sports or news packages.<br />
Because of the amount of software in new<br />
vehicles, and over-the-air updates where<br />
manufacturers remotely upgrade that<br />
software, your car maker can turn certain<br />
features on or off, depending on whether or<br />
not you paid for them.<br />
You want to remotely start your car from your phone app? That will<br />
cost you. You want navigation that adds traffic and weather data? Extra<br />
charge.<br />
You want your vehicle to drive autonomously, pony up the bucks.<br />
Heated seats? Upgraded radio? When does it stop?<br />
In some BMWs there’s even a charge to unlock automatic high-beam<br />
headlamps. Manufacturers estimate it could generate about $20 billion<br />
in annual revenue from charging for these services.<br />
Like most people, we hate being nickeled and dimed to death. Cox<br />
Automotive did a study recently that found 75% of consumers aren’t<br />
willing to subscribe to most vehicle features.<br />
The reason you spend more for a luxury car is to have those features<br />
included. Imaging paying $80,000 for your new car and you don’t get<br />
all the functions unless you pay every month.<br />
New Jersey recently adopted an assembly bill<br />
that prohibits a motor vehicle manufacturer<br />
or dealer from requiring subscriptions for<br />
certain motor vehicle features and from<br />
charging certain fees, excluding third-party<br />
services such as satellite radio or in-vehicle<br />
Wi-Fi.<br />
If the automotive manufacturers keep this<br />
up, more people will become favorable to a<br />
general car subscription service, where you don’t even own the car and<br />
just get whatever kind you want when you need it. The impact on car<br />
sales would be devastating.<br />
Once again, manufacturers are looking for the quick buck without<br />
realizing the toll it could take on them years down the line.<br />
BJ Killeen has been an automotive journalist for over 30 years.<br />
She welcomes all questions and inquiries, and can be reached at<br />
bjkdtr@gmail.com<br />
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