Posted on 05/01/2026 2:03:37 AM PDT by dennisw
Popular Ford feature that has always been free now costs $455
Remember when buying a car meant paying once, grabbing the keys, and driving off into the sunset?
That era may be fading fast. Automakers are quietly transforming the way drivers pay for their vehicles - and your next car could come with a growing list of monthly charges long after you've left
General Motors is leading the charge, betting that subscriptions for features like navigation, safety systems, and hands-free driving will soon become a major profit engine - potentially generating billions of dollars a year and, in some cases, even more than selling the cars themselves.
GM says its software arm keeps about 70 cents of every dollar it makes - a staggering level of profitability in an industry where selling a car typically brings in just 4 to 10 cents on the dollar.
Instead of paying upfront for everything, drivers now get certain features included for a limited time - often just a few years - before being asked to pay monthly or annually to keep them.
In its latest earnings update on Tuesday, GM said it expects to generate $3.1 billion from digital subscriptions this year.
‘We think there’s a growth opportunity there with very attractive margins,’ CEO Mary Barra told investors.
GM already has around 13 million subscribers paying for various in-car services, and that number is expected to climb rapidly as more vehicles come equipped with built-in technology.
(Excerpt) Read more at dailymail.com ...
I have newer owned a Ford product & particularly a new one. If something like a “forced subscription” were added on, I would immediately tell the dealer what he could do with it & walk out. They can’t be allowed to get awawith th that, especially if it is for something need to actually operate the vehicle. Is it just Ford practicing this?
There are no subscriptions, but there is no guarantee the system will work years down the road...
These navigation companies get paid not just in the units sold but by advertisers on their platform. The voice directions now include "Turn left at [business name]".
These companies intend to implement the newspaper model: get paid by advertisers and get paid by subscribers.
It's one thing if it's through a cellular application instead of just directly using a fob and there's something to be said for diagnostics that won't allow the vehicle to start, or will shut it off, if something's wrong such as the car is low on oil.
1995 F-150...Cherry. Bought new 31 years ago...The only options I purchased were electric windows and A/C.
Runs like a champ...Radio quit and replaced about 15 years ago...Will be buried with that truck
Weird listening to the guy next to my start his engine when the light turns green...
Very comforting being old school.
That's true across the industry. Formerly you outright bought an upgrade which was better than and had new desirable features compared to the version you were running. So it was worth it. Now the software has completely matured and there's nothing left to add or sell as an upgrade. In fact, there are tons of features that no one uses. So now instead of selling they're renting.
Of course, back in the day, if you wanted the option for the CD player they’d charge you $600. Which was pure profit. Before that the radio. So they’ve been ripping you off forever. They difference now is that the ripoff is continuous.
Nothing new, my 2018 Hyundai had three years free Navigation, Bluelink / emergency services. Renewed it year four when it was offered for half off. The last four years I have done without. Navigation still works but I have to manually fat finger in new address that I have not been to before. Voice input is part of the subscription.
So here’s a question. If you’re paying a monthly fee for something aren’t you entitled to free service on that item if it breaks? I’m certainly not paying for something that doesn’t work anymore. They love their service income too.
You and I are different. I don’t want anyone let alone the car itself drive me every day. I get mad at my 2024 Acura cause it tries to brake for me or won’t let me back up with car door open. I don’t want my car to take car of me, I just want the freedom an automobile and open road provide.
Those headlights are awesome. Especially if the high beams are on.
I drive a ‘17 Ford F250 supercab, just ready to roll 100k this month.
Got a price on a new one, screw it. I can have a new transmission put in if needed from Jasper, 6.2l gas engine completely rebuilt, front end rebuilt, interior redone if needed, and still come out for far less than 50% the cost of new.
At 60 I can probably make this truck last until they bury me with it, and I’m fine with that unless its totaled of course, then I’ll buy a used one an do the same thing to it.
They tell me there is a car in that picture.
Oh you want that car to start...that’s $19.99 per month for the subscription to that particular service...
I have completely lost my desire to get a new vehicle. I will keep my 2016 Ram (with 62,000 miles currently) until the wheels fall off, before which I will most likely be dead. This subscription stuff is as out of control as tipping. Ridiculous.
WAZE rules
I know this doesn’t go over well...but, in a competitive market, this should keep entry level prices lower than they would otherwise be AND give the consumer a better long-term experience.
It’s extremely expensive to have multiple options for the same product. E.g. suspension options, infotainment options, seat options. Why? because it requires more manufacturing tooling, more engineering, more configurations, inventory management, blah...
For example, it’s far less costly to make a single suspension system, with electronic active dampers, and put them into every vehicle - vs. also an option for suspension without. That you can buy the vehicle without the active option, lowers the price, where it’s just not enabled in software. You haven’t actually PAID for the additional engineering and more advanced suspension. It also means you may have the OPTION to enable it at some future time if you regret not purchasing it at the point of sale, without the costs of physically replacing them.
Other items, like navigation maps, require constant maintenance - roads change, points-of-interest change, with vehicle data charges to update maps, all costs money. For these, a subscription does make sense, or an update fee so you can choose when.
As somebody that works in the automotive industry, I see all the additional overhead to support all these things. The software defined vehicle enables more flexibility in what a base price can be, while giving you the option to improve the vehicle capabilities later on. It also lowers the base price because you’re not engineering and tooling for many multiple options.
Imagine buying a used car, where the prior owner didn’t purchase the better suspension, the fancy navigation options, the heated seats, etc. - and you want them. All you need to do is software enable them with a purchase. You don’t have to go anywhere or pay for new installation - just use the phone app, or the built-in infotainment app. Upgraded!
It’s a change, I get it. It doesn’t “feel” right...but seeing the complexities and costs involved, I’ve no problem with it. I WANT cars that can improve over time, including new software changes that might improve braking distances due to a new algorithm (Tesla did this), or a navigation route planner that is smarter when there’s local sporting events causing unusual traffic flows.
The promise of the software defined vehicle will bring more flexibility, as well as enable an improved experience over time.
That said, I do think there’s also a market at the ultra-low-end - a bare minimum, non-upgradable, vehicle with absolute minimum specs. Something purely to get from A-to-B, even if not too comfortable. That said, the regulatory aspects make this almost impossible - airbags, cybersecurity (if there’s ANY software at all), crash ratings, functional safety standards, etc. - they all bloat the price of the modern car.
It’s just the reality of where things are.
If it’s not already happening it’s only a matter of time before the software in vehicles will dictate when/how maintenance is performed and all the ancillary parts and equipment required to keep it operational. It won’t be considered actual sabotage, but it will be.
Drivers very much can avoid these fees by never, ever, buying vehicles with necessary subscription-based features.
Buy an old car with a good body and overhaul it. Especially a desirable car like Dodge Charger.
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