Photo by Adrian Kusznirewicz on Unsplash 

Subscription pricing is all the rage these days. From streaming services to software tools, it seems that everywhere you look today, more products are transitioning from one-time payment models to service rentals with recurring payments. Now, some automotive companies are even putting vehicle capabilities behind a paywall, requiring customers to pay extra after purchase to access certain features and performance enhancements.

“Rather than relying on a one-time sale of a car or parts to repair them later down the road, brands have figured out that they can instead continue to rake in money once a car leaves the lot by offering up subscriptions. Now driver-assistance tech is becoming the latest way to push monthly payments onto consumers.”
-Rob Stumpf, InsideEVs

Paywalled Features

The most popular choices for subscriptions are vehicle features that would normally be included on higher trimmed vehicles, such as heated seats, navigation assistance, and automated driving. This approach taps into features consumers already value, turning familiar expectations into ongoing revenue opportunities.

While many of these features were previously available through a one-time fee at purchase, more and more automakers have begun tentatively putting them behind a subscription paywall. Tesla is a frontrunner in vehicle subscriptions, and now offers its “Full Self-Driving" features through a pay-as-you-go model.

“This move marks the latest push by Tesla to transform the way buyers access its driver-assistance features, departing from a fully-encompassing tech stack to a nudge toward a $99 per month Full Self-Driving subscription.”
-Rob Stumpf, InsideEVs

Many consumers across North America are unhappy about the move towards subscription-based vehicle features. For a consumer base used to upfront purchases at the time of sale, putting features behind a paywall feels like a step backwards. Things like lane centering, blind-spot warnings, and automatic emergency braking have been widely available across different manufacturers and in different price ranges for years, but many worry this could change. What frustrates many drivers is not the added cost itself, as many of these features have long been dependent on the model and trim of the vehicle, but paying continuously, which makes the overall cost harder to pin down and means losing the feature when payments cease, no matter how much they already spent.

Subscription-Based Performance

Features aren’t the only things being put being a paywall. Some automakers are introducing subscription pricing for higher performance, too. For example, certain EVs in Mercedes-Benz's EQ line can now pay extra to increase engine output, boosting speed and torque.

Critics condemn auto subscription models for “nickel-and-diming" them on performance capabilities their vehicles are already equipped to deliver. Knowing a vehicle is capable of a certain level of performance, such as higher torque, but being unable to access it without paying extra has led some consumers to shop elsewhere.

Charging for performance boosts or seasonal comforts like heated seats is one thing, but removing safety features like driver-assistance systems and putting them behind a paywall is a slippery slope for safety innovation.

Safety for All

When Volvo engineer Nils Bohlin developed the three-point seatbelt, the company patented the design, giving them the option to retain exclusive control and charge automakers for its use. However, Volvo ultimately chose to make the design freely available, prioritizing public safety over profit.

“[Volvo] made Bohlin's patent immediately available to all. Having sponsored the R&D, they gifted their designs to competitors, to encourage mass adoption and to save lives.”
-Douglas Bell, Forbes

A world with fewer vehicle collisions and fatalities should be the ultimate goal of the automotive industry. Any step forward in safety innovation should be shared widely to maximize its ability to save lives. Instead of placing safety features behind paywalls, fees, markups, or subscriptions, manufacturers should be making them more accessible.

Sources:

https://www.forbes.com/sites/douglasbell/2019/08/13/60-years-of-seatbelts-volvos-great-gift-to-the-world/

https://insideevs.com/news/792417/automakers-self-driving-subscriptions-consumers/

https://www.endurancewarranty.com/learning-center/make-model/what-is-mercedes-benz-acceleration-subscription-fee/

https://autos.yahoo.com/ev-and-future-tech/articles/tesla-removes-autosteer-model-3-070819452.html