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Car companies stand to make billions by charging you monthly fees for add-on features like heated seats
Business Insider via Yahoo ^ | 01 05 2022 | Tim Levin

Posted on 02/06/2022 9:39:03 AM PST by yesthatjallen

How would you feel about paying $5 each month for the ability to lock and unlock your car from a distance through an app? What about a $25-per-month charge for advanced cruise control or $10 to access heated seats? What if those charges continued long after your car was paid off?

As vehicles become increasingly connected to the internet, car companies aim to rake in billions by having customers pay monthly or annual subscriptions to access certain features. Not content with the relatively low-margin business of building and selling cars, automakers are eager to pull down Silicon Valley-style profits. But unlike with Netflix, you won't be able to use your ex-girlfriend's uncle's login in your new BMW.

For automakers, the advantage of this model is clear. Not only do they get a stream of recurring revenue for years after an initial purchase, they can hope to maintain a longer-term relationship with the customer and build brand loyalty, said Kristin Kolodge, an analyst at JD Power.

This approach can also allow carmakers to streamline manufacturing by building cars to more uniform specifications, Mark Wakefield, who runs the automotive and industrial practice at the consulting firm AlixPartners, told Insider. Down the line, owners can add on the features they want à la carte.

It's all made possible by the advent of over-the-air software updates, which were pioneered by Tesla around a decade ago and are now entering the mainstream. Today's vehicles are more internet-connected and computerized than ever before, meaning car companies can reach deep inside a vehicle to add new capabilities and tweak things from a distance.

SNIP

(Excerpt) Read more at news.yahoo.com ...


TOPICS: News/Current Events
KEYWORDS: addons; agitprop; alixpartners; businessinsider; cars; cop26; fakenews; g20; glasgow; globalwarminghoax; goonfoot; greennewdeal; leasing; markwakefield; panicporn; renting; scotland; scotlandyet; timlevin; yahoo
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To: Alberta's Child

EVERY report like this makes me happier that I own OLD IRON.


21 posted on 02/06/2022 9:54:34 AM PST by ridesthemiles
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To: cgbg

CSPAN had an interesting show about the World’s Fair of 1939.

The Fair lost money because it failed to meet its revenue projections.

The number one problem the Fair had—folks thought the food prices were too high.

Consumers can get very irritated and rebellious when they think they are getting ripped off...even on relatively small items.


22 posted on 02/06/2022 9:55:03 AM PST by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: taxcontrol
people will pay this and many will not even be aware of it....

"what's 5 bucks"..."what's $10 bucks"....

people throw away money all the time without blinking....

I guess if you're a rich govt worker or retiree with unending stream of income, you don't care about this....

we could afford this crap but I won't do it out of principle....

23 posted on 02/06/2022 9:56:03 AM PST by cherry (;)
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To: Hildy

“It’s a choice, like anything. If you want the extras you’ll pay for them.”

NO! I WANT MY NANNY TO MAKE THE BAD MAN COMPANY GIVE ME THE FEATURE FOR FREE!


24 posted on 02/06/2022 9:56:07 AM PST by BiglyCommentary
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To: yesthatjallen

There will be chips to reverse this in a New York minute !


25 posted on 02/06/2022 9:56:34 AM PST by njmaugbill (Nj)
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To: yesthatjallen

> , owners can add on the features they want à la carte.

Which means the “features” are there, but not enabled.


26 posted on 02/06/2022 9:57:43 AM PST by glorgau
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To: yesthatjallen

It sounds much like the idea Microsoft was tossing around about charging a $5 monthly fee for Windows updates and security updates.


27 posted on 02/06/2022 9:58:48 AM PST by VanShuyten ("...that all the donkeys were dead. I know nothing as to the fate of the less valuable animals)
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To: yesthatjallen
On the bright side, we voted in legislators willing to let us drive 80 mph.

And Sen. John Tester (D-MT) has introduced Agriculture Right to Repair Act, so there's that.

28 posted on 02/06/2022 9:59:41 AM PST by aspasia
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To: yesthatjallen
The "aas" (as a service) business model has been picking up steam.

Take home printers for instance. Used to be you bought a printer and then purchased toner/ink as you needed it. Now for say $15/mo you get toner/ink cartridge sent to you automatically as your printer calls for it.

For some heavy users, the company may have to send you a cartridge every month or so and take a loss. But for the majority of others, a cartridge might be needed only once every year or so, allowing for hefty margins.

Overall, "printing-as-a-service" is very lucrative.

Many other examples abound such as Microsoft Office 365.

29 posted on 02/06/2022 9:59:53 AM PST by SamAdams76 (I am 24 days away from outliving John Hughes)
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To: njmaugbill

So I’m an auto shop and have to test the heated seats on a car being prepped for resale. I use my shop sw to enable the feature. You slip me a one time payment of $25 and I enable it for you too....


30 posted on 02/06/2022 10:01:32 AM PST by BiglyCommentary
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To: rightwingcrazy

A subscription model makes sense in some cases where regular updates can be practical. A GPS software package, for example, can be updated periodically to provide new mapping, updated directories of businesses, etc. But a subscription service to maintain the functionality of HARDWARE like heated seats, AC, cruise control, etc. is idiotic.


31 posted on 02/06/2022 10:04:10 AM PST by Alberta's Child ("Mr. Potato Head ... Mr. Potato Head! Back doors are not secrets.")
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To: rightwingcrazy
"It’s a means to easy money, and every industry seems to be seeking a piece of the action."

Death by a thousand little fees.

32 posted on 02/06/2022 10:06:33 AM PST by yesthatjallen
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To: BenLurkin

“I have another dumb question: Can cars being sold today be disconnected from the internet permanently?”

If they can give you ‘features’ via Internet download, they can also download ‘issues’ forcing you to take your into the dealer, when the dealers are otherwise not busy.

It really does make sense to ‘cut the cord’ here, once people figure out how (perhaps shorting out the antenna, but not sure).


33 posted on 02/06/2022 10:07:02 AM PST by BobL (Money is the most important thing in my life.)
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To: Alberta's Child

Question is would you be unlocking access to equipment already installed on your car which you did not pay for or access for options your purchased with the car? Also would you need a subscription to enjoy the option you already purchased when the car was new?


34 posted on 02/06/2022 10:07:34 AM PST by Lockbox (politicians, they all seemed like game show hosts to me.... Sting)
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To: SamAdams76

This is a mixed bag. Do I want to pay an extra $1000 for a feature I don’t want? If I’m driving the car for only 2 years $10/mn is cheaper. If I’m laid off and conserving cash I can turn off extra stuff and then reable after getting hired again. Way too many scenarios to know whether this is good/bad without knowong specific use and implementation cases.


35 posted on 02/06/2022 10:09:59 AM PST by BiglyCommentary
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To: yesthatjallen

Right now Fords free to lock/unlock/start from app. My understanding is GM you have to pay


36 posted on 02/06/2022 10:10:01 AM PST by pnz1 ("These people have gone stone-cold crazy")
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To: yesthatjallen

For $40 you can by a heated seat pad that plugs into cigarette lighter... no monthly fee


37 posted on 02/06/2022 10:10:17 AM PST by Bob434
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To: yesthatjallen

Buy a base trim.

Problem solved for the most part.


38 posted on 02/06/2022 10:10:52 AM PST by mewzilla (God bless Canada's Freedom Truckers!)
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To: ridesthemiles
EVERY report like this makes me happier that I own OLD IRON.

Until one of the Important Wires gives out and the cost to replace or repair it is X thousand dollars and Y weeks' time.

People don't drive new cars because they want the latest rage; they drive them because they need a reliable car (for themselves or for their loved ones).


Whenever the subject of some intrusive piece of software in new cars comes up here in the fora, there's a reliable cohort of people who brag about driving a car that's twenty-plus years old, so that's not a concern of theirs.

But twenty-plus year old cars break, and they break because of wear and tear, often in places and on parts that we can't see. And if you yourself might be in a position to deal with a car that just died in the middle of nowhere, keep in mind that most people aren't; many have wives and daughters that they wouldn't think of putting at risk in that kind of a situation.

39 posted on 02/06/2022 10:10:59 AM PST by Captain Walker ("If you think tough men are dangerous, wait until you see what weak men are capable of."- J Peterson)
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To: njmaugbill
"There will be chips to reverse this in a New York minute !"

A minute later using such chips will be a felony. I suspect tampering with this coming technology will come at a hefty price.

40 posted on 02/06/2022 10:12:48 AM PST by yesthatjallen
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