Can you imagine paying a monthly fee to use the features built into your truck? Several companies are already experimenting with charging for “premium add-ons” and most automakers will likely follow suit. In this video Publisher Tim Esterdahl discusses the new GM subscription fees, but it is far from the only automaker who is starting to charge for features that used to come with the truck.
You read that right. For things like remote start, safety connect (OnStar) and other connected services GM is going to start charging customers. Why? Apparently, because customers are willing to pay it.
This isn’t just speculation either. There are companies already charging subscription fees for software updates, onboard navigation, Apple Car Play, heated seats, remote unlocking, self-driving features, automatic high beams, wifi, stolen vehicle tracking, and more.
In this video, Esterdahl talks about the extra revenue manufacturers could make from these subscription services: $20-40 billion dollars per year are estimated. That’s no small profit.
Right now, the average monthly payment for a car is $820 per month. That’s not including insurance or registration fees. The average starting price of a new car in 2021 was $45k, and the average starting price for a new truck in 2021 was $55k.
Perhaps we’ll see cars and trucks being built with all the up-level amenities, allowing customers to pick what they want to pay extra for, versus a multitude of trim levels and add ons paid for up front.
We’d love to hear what you think of all of this after you watch Esterdahl’s GM subscription fees video below!
When I bought my 2021 Blazer, one of the included features was remote start. If the remote start is listed on the vehicle features as included with the vehicle, how can they charge for it in the middle of the contract? That’s like buying a television with a remote but the remote won’t work unless you pay a fee to use it. It was advertised as part of the vehicle.
My 2022 Traverse is lame now I can’t believe I paid cash for this and now I have a payment. I will not pay for this service.