In-car subscriptions are hurting buyers and automakers don’t understand why – Jalopnik

According to data from Kelly Blue bookBy 2025, the average cost of a new car out the door shot above $50,000, with the Manufacturer’s Suggested Retail Price (MSRP) exceeding $52,000. But even as prices continue to rise, automakers have become ruthless in their pursuit of recurring monthly revenue in the form of subscription services. More comprehensive navigation apps, Wi-Fi hotspots and hands-free systems like GM’s Super Cruise are some of the feature automakers have put behind subscription paywalls.

But an aggressive push in recent years has seen brands like Volkswagen demand a monthly fee to utilize the full power of some of their engines. Meanwhile, BMW continues to push subscriptions, although charging customers monthly to use the seat heating function sparked a backlash. And Mazda attempted to add the key fob’s remote start features to its Connected Services app, charging drivers $10 per month for the privilege, though the company has since reversed its efforts.

In general, drivers have shared negative reactions to this prevalent monetization. S&P Global Data shows that only 35% of Americans are willing to pay for a car subscription, which was the highest among eight other countries. In addition to rising prices, the public has grown tired of monthly fees, the increasing number of features being put behind a paywall, and the privacy concerns surrounding the data collected.

Automakers haven’t been subtle in their attempts to make money from everything, either. This is no clearer than when we look at the options that are already present in the car, but are behind a subscription. Take Audi’s Q4 E-Tron, for example, which caused a stir online when an owner tried to press the physical button to “sync” its three-zone climate control system. They were greeted with a message on the media console display claiming that this particular feature had not yet been purchased. The vehicle obviously already has this capability built in, but it was deliberately locked. Worse, even used cars can’t escape subscriptions, as automakers work to bring those models to market as well.

In addition to these vehicle manufacturers wanting you to pay monthly for various features in the car, they also sell your data, essentially creating two recurring revenue streams. And the party that buys the data may also want to use it against you. For example, a Chevy Bolt owner discovered that his personal habits behind the wheel, such as the way the accelerator and brake pedals were operated while traveling, were all documented and then purchased by a data broker. This broker then turned around and sold the information to insurance companies without the driver’s consent. The driver’s existing insurer then increased the premium, and when they looked for alternative quotes, they were still faced with higher than normal rates.

Additionally, your modern car may be hacked by malicious parties, allowing them to steal data provided as part of the subscription service. Law enforcement also trains investigators to exploit subscription-based connectivity features. In other words, your data could end up in the hands of government officials and criminals alike.