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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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