Subscription is picking up in the car buying world
Quote from Ndubuisi Ekekwe on September 7, 2023, 9:16 PMSubscription is picking up in the car buying world after Elon Musk's Tesla pioneered that business mode. Yes, companies like Ford and GM are following up and rolling out similar playbooks. This is going to complicate matters for second hand users at scale since buying a car does not transfer all the privileges without signing up to the subscriptions.
Technology continues to drive innovation and revenue growth in the auto industry. The latest twist: Prospective buyers are being offered paid subscriptions for entertainment options, enhanced navigation and even hands-free driving. Both Ford and General Motors’ hands-free driving systems cost thousands of dollars, depending on the length of the plan. Buyers are willing to pay for the subscriptions, if there’s a free trial first, according to a recent S&P Global Mobility survey. Still, the extra fees would be tacked on to monthly car payments. BMW was forced to drop an $18 a month heated seats subscriptionafter drivers refused to pay.
Subscription is picking up in the car buying world after Elon Musk's Tesla pioneered that business mode. Yes, companies like Ford and GM are following up and rolling out similar playbooks. This is going to complicate matters for second hand users at scale since buying a car does not transfer all the privileges without signing up to the subscriptions.
Technology continues to drive innovation and revenue growth in the auto industry. The latest twist: Prospective buyers are being offered paid subscriptions for entertainment options, enhanced navigation and even hands-free driving. Both Ford and General Motors’ hands-free driving systems cost thousands of dollars, depending on the length of the plan. Buyers are willing to pay for the subscriptions, if there’s a free trial first, according to a recent S&P Global Mobility survey. Still, the extra fees would be tacked on to monthly car payments. BMW was forced to drop an $18 a month heated seats subscriptionafter drivers refused to pay.