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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.
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It’s not even too much of a good thing.
Just about all car manufacturers make more money on their car loans than on the actual automobile. Now you can add these bs subscriptions to those loans. The ultimate will be when your A/C and heater will not work until you pay your subscription fees of $40 monthly.
Oh no way, I would find an alternative to ford, or get a used vehicle, anything to avoid ongoing charges
Sydney Sweeney poses with a Ford Bronco. Ford is now also charging monthly subscription fees for products or services that used to be free
I have never used any of the “subscription features” beyond the free period. The market will push back against this money grab. Ford and BMW need to realize they are competing against BYD and other Chinese brands that will offer the same (or better) services for free, even if they take a loos in the short term, to put them out of business.
One more reason NOT to buy a new car!
Initially you would think that, but think about the technology industry, software was sold as packages at one time, you buy it you own it.
Then Microsoft changed the game, instead of selling software, they sold subscription or licenses to use software and made Bill Gates and many others insanely rich.
Maybe carmakers will change to a model where they sell cars at cost or break even and then make their money selling subscriptions off of different features.
I believe in the next 5-10 years maybe longer, the biggest feature of new cars will be Full Self Driving (FSD), it will make driving a car significantly safer than today. If manufacturers like Tesla are successful with FSD and selling it as a subscription with future enhancements as part of the license, then you will see other major manufacturers switch to this type of model.
I have yet to buy into any subscription software, but I know that is what they are trying to force. Hopefully, consumers can push back. As far as self driving, I know that is the future. Not for me, but my grandkids may never drive their own car. “FSD” will probably be mandatory in 20 years. That is if private car ownership is still a thing for the masses by then.
If you don't like the product or service, don't buy it.
It's communists who believe businesses are evil because they are always trying to "grab your money."
Being able to hop in my ride and go just about anywhere at just about anytime has pretty much defined my life.
After Vietnam, that is
I asked about the Sidney Sweeny option…
My car doesn’t have all the toys because I wouldn’t use them. I use my phone if I need GPS.
I’ll take a pass on an EV even if Sydney delivered a Bronco in person. Not sure if this model is made by Ford in Chicomland nor do I care.
The problem with simply refusing to pay for a subscription service is that (if one is lucky enough to be able to buy a new vehicle these days) the technology for these services is already in the vehicle. So the sticker price includes the hardware/software for the feature which you will pay for whether you want to use it or not. Refusing to subscribe to an unwanted feature denies Big Auto some long term cash but does little to encourage them to drop it.
Something else to consider when doing the math to decide if you buy new or a used vehicle is TCO (total cost of ownership). Be sure to include those subscription costs in the long term evaluation of new ownership.
Of course ‘long term’ these days is a tongue in cheek thing as many new vehicles won’t roll up 100,000 miles before it’s first long term stay at a dealers service department. If you are very lucky that new engine will be covered by warranty. It is more likely that it will not be covered and you are out of pocket thousands - music to Big Auto’s ears. Be sure to set aside for that possibility when doing your TCO calculations.
If you look at the statistics of what causes car accidents, everything from drunk or impaired drivers to people who are tired and fall asleep or people fooling around with their phones, if you remove a significant percentage of those people thru FSD, it will make the roads significantly safter.
I bought a BMW about 14 months ago. It came with 4 year subscription for the navigation map and roadside assistance. It has an option for traffic light cameras and some sort of video playback. Of course the SiriusXM subscription is separate. When my 1 year free trial was up, I renewed it for for about $6 a month. If it costs more next time, I may go without.
Car makers were talking about using the computer hardware software model 10 years ago.
Nice headlights.
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