A monthly fee for heated seats?

[XCR1250]

A monthly fee for heated seats? Car subscriptions are coming — whether Americans like them or not

 

Pras Subramanian

·Senior Reporter

Sun, May 14, 2023 at 7:46 AM CDT

 

 

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.

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

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).

Mercedes waded into the mix recently with news that it would allow owners of EQ-series EVs to unlock more power through a subscription feature activated through the Mercedes app. For instance for the EQE 350 4MATIC EV, Mercedes notes prices of $60/month, $600/year or lifetime cost of $1,950 to unlock an additional 60 horsepower (and improve 0-60 mph times to 5.1 seconds from 6.0 seconds, which truth be told is a significant boost).

It’s another interesting move from Mercedes, as the car theoretically is capable of producing the enhanced power, but Mercedes has essentially “detuned” the motor from a software point of view. Usually this is the case for the base trim or lower-level trims in the model line, like in this case the 350 4MATIC trim of the EQE series.

Toyota was flagged by users on Reddit for making owners pay a subscription fee to unlock certain features on the Toyota app, namely the ability to unlock the car doors and remotely start the vehicle if need be. Again, the feature is already baked-in to the app and the car itself, but Toyota would like owners to pay to activate the feature.

 

 

 

For its part, Toyota defends the practice and says it is actually offering a better deal for owners as the products mature.

“Previously, our Connected Services plans were priced a la carte. For example, Remote Connect was $8 per month and Drive Connect – our Intelligent Voice Assistant and Cloud Navigation feature – was $16 per month for a combined total monthly price of $24,” a Toyota spokesperson said in a statement to Yahoo Finance. “The new plan featuring both services is now priced at a lower $15 per month cost. We have also introduced a trial for our Safety Connect emergency telematics service which is now included for up to 10 years on every vehicle featuring our new multimedia system."

Toyota says many of its models have one year trials, and many Lexus models feature three year trials to introduce drivers to the features and benefits of the company’s Connected Services before a subscription plan is necessary.

Why the industry sees FoD as the future

 

The interior of a Ram 1500 REV is pictured at the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado

Why are these subscription fees so important to automakers? Because many of them have included subscription fees in their financial models to justify future revenue and profits for the business over the years. Wall Street analysts and investors are counting on these additional dollars beefing up the bottom line in future quarters, and thus boosting share price.

The question is, how can automakers make these feature on demand services palatable to more owners? Toyota’s practice of offering these services for a limited time for free, which other automakers do as well, is a way to soften the blow and let customers see if they really need the service.

Case in point: Cox found that 65% of respondents suggested a free trial period for add-on features would be a positive selling point and make them more likely to consider a brand. Even better, nearly half of respondents felt having the ability to upgrade a car with new capabilities would be a reason to retain the car longer in the future.

Whether Americans are willing to play ball here and pay the fees is another story. Many already reluctantly do (this reporter a couple years back paid an additional fee to unlock Apple CarPlay on a used-car purchase), as some must-have features just need to be had.

“I don't think [features on demand] is going away, and also as the cars get more and more sophisticated, get more and more functionality, then it just feels like a natural progression,” Edmund’s Weaver says, also noting he too has gotten used to these add-on features, and their costs, for his personal vehicle.

Perhaps Weaver, and the industry as a whole, is right about the future of features on demand.

On the flip side, maybe the old “analog” car will make a comeback: one that doesn’t need connectivity to the cloud to work properly and a credit card to make the car go faster.

[sleepybrew]

gm getting 25.00 a month for hands free super cruise after 3 years

Edited May 14, 2023 by sleepybrew

[racinfarmer]

Get too greedy and the government will step it.

They are walking a thin line with some of this shit.

[Bontz]

Fuck that ... we lived without those "luxuries" for how long?  I know there will always be those that are willing to pay, but they can fuck right off if they try to tell me I gotta pay a subscription for that stuff.

[Frostynuts]

What a fukked up world we have allowed it to become. Are we ever going to see some real pushback ?

[Mainecat]

I want a pickup with no rugs, power windows heat and ac only. Fuck all the bullshit.

[SkisNH]

When we were in germany, they charged for heated seats and Bluetooth access in the rental..I paid it just so I could stream music in the car. 

 

[Kivalo]

Just another way to milk the consumer cash cow. Subscription based service should come with regular improvements, paying for a few to rent your heated seats that you already paid for? Fuck them crooked cocksuckers.

[BOHICA]

They will be able limit how far you can drive.  Pay more to access more range you can use in a day.  Every 100 miles we require a fee.  

Edited May 14, 2023 by BOHICA

[Steve753]

3 hours ago, Mainecat said:

I want a pickup with no rugs, power windows heat and ac only. Fuck all the bullshit.

I order all my trucks without carpet.

[DriftBusta]

23 minutes ago, Steve753 said:

I order all my trucks without carpet.

I've had a couple like that.  Esp if you're getting them dirty regularly.  Hit it with the hose.

[Steve753]

30 minutes ago, DriftBusta said:

I've had a couple like that.  Esp if you're getting them dirty regularly.  Hit it with the hose.

No hoses in mine. Top of the line. Carpet delete. All carpet does is hold pebbles and dirt. People spend all kinds of money onp floor mats to cover the carpet. I have nice factory mats that snap to the floor on each side...easy to remove...easy to vacuum the plastic floor.

[SkisNH]

7 hours ago, Steve753 said:

No hoses in mine. Top of the line. Carpet delete. All carpet does is hold pebbles and dirt. People spend all kinds of money onp floor mats to cover the carpet. I have nice factory mats that snap to the floor on each side...easy to remove...easy to vacuum the plastic floor.

Does it transmit more sound? 

[800renegaderider]

Not that I give two shits about a heated seat but I’d just buy a $100 kit and throw it in before I paid any monthly fee screw that.

[SayatodaU.P.eh?]

On 5/14/2023 at 7:10 PM, BOHICA said:

They will be able limit how far you can drive.  Pay more to access more range you can use in a day.  Every 100 miles we require a fee.  

You do realize that your beloved Tesla is practically leading the way with this bullshit, right? 
 

SDVs (software defined vehicles) are coming folks. True reality. It’s probably even a bigger push inside automotive companies, than EV is, currently. Don’t worry, this won’t lower the cost of vehicles at all. 
 

Electrical accessories and EV range is just the beginning. Imagine if you could pay a monthly fee for more HP or a number of performance/handling improvements. Yup yup. It’s a comin. Thank the millennials and Gen Z. 

[spin_dry]

The car makers should maybe be concerned with the new vehicles that are piling up on dealer’s lots. No matter what city or state, I’ve never seen so many vehicles. Especially pickups. 

[Frostynuts]

Nice to see consumers are finally starting to smarten up, and quit paying the stupid prices that have reached absurdity over the last couple of years. 

I see Ram is offering up to 10K off their stupid suggested list prices. Kinda gives you an idea of the fukking they and all the other manufacturers have been giving the must have right now crowd. Ford and a lot of other brands are offering huge rebates as well. Tractor lots are overflowing also. It wouldn,t break my heart to see a bunch of these dealers go belly up. There greed should not go un-punished.

Smart consumers, that have held off buying major purchases, and have the cash or great credit, will probably be able to get super deals within the next year, or two. 

I,m watching the markets, and willing to wait them out, ready for a great deal, when they finally get here.

[XCR1250]

Look at this Polaris RZR $45,000.

https://www.polaris.com/en-us/news/product/troy-lee-designs-rzr-pro-r/

 

Edited May 21, 2023 by XCR1250

[SayatodaU.P.eh?]

7 hours ago, Frostynuts said:

Nice to see consumers are finally starting to smarten up, and quit paying the stupid prices that have reached absurdity over the last couple of years. 

I see Ram is offering up to 10K off their stupid suggested list prices. Kinda gives you an idea of the fukking they and all the other manufacturers have been giving the must have right now crowd. Ford and a lot of other brands are offering huge rebates as well. Tractor lots are overflowing also. It wouldn,t break my heart to see a bunch of these dealers go belly up. There greed should not go un-punished.

Smart consumers, that have held off buying major purchases, and have the cash or great credit, will probably be able to get super deals within the next year, or two. 

I,m watching the markets, and willing to wait them out, ready for a great deal, when they finally get here.

You’re going to be waiting a long time. 

[Frostynuts]

1 hour ago, SayatodaU.P.eh? said:

You’re going to be waiting a long time. 

No problem, I,ve got 5 vehicles, all in great shape, which will be good for years and years. 

If the price is right, I will  buy whatever I want, if not, no problem whatsoever. 

I,ve never had any, must haves right now, at any cost moments, so that has put me in a great financial position to be able to buy, when the time is right.

Hopefully more and more dealers of all kinds will go bankrupt as payback KARMA for the fukking they have given to stupid must have it right now, at any cost crowd.