Too much of a good thing is real. With cars, too many goodies means real expensive. Then subscriptions happened and owners became annoyed. And, according to a recent study, everyone still is.
Smartcar, which develops platform/app management for connected cars, released its annual report on the current state of in-car technology and the results…are not good. For automakers, that is. The report states that by 2030, 96% of new vehicles will be connected cars. Meaning they’ll have built-in Wi-Fi connectivity and access to connected services, AKA fertile hunting grounds for subscription services.
But most owners don’t use any of it. There are varying reasons as to why. Some don’t care, many are unaware, but a clear majority don’t want to pay (too much) for it.
In a survey of more than 1,000 drivers in the U.S. and Europe, 76% responded that they haven’t signed up for the automaker’s connected services subscription. Of those who are subscribed, it’s a split between paid (49%) and free (51%) access.
If there’s a silver lining for OEMs, it’s that only 11% of those surveyed said they had absolutely no interest in a subscription service. Again, that lining is silver and not green because although 50% said they’d give subscriptions a try, the caveat was only if the cost was lower.
Cost and value are where the pushback is coming from. For example, when automakers charge for services or features that were once free or included in the price of the higher trim level that was purchased, people do not respond in kind.
BMW has repeatedly tried to charge a heated seat subscription but eventually reneged because the topic heated more than just butts. Audi, on the other hand, removed the climate control syncing feature so now drivers can freeze instead. Mass market brands feel the furor as well. Mazda had to deal with forum fury over its remote start feature transitioning from freebie to subscription. Nevertheless, GM wholeheartedly believes consumers will fork over an extra $135/month on its subscription services.
If car shoppers need a friend, Volvo offers an understanding shoulder. Volvo CTO Anders Bell gets us and said OEMs need to chill on the subscriptions.
“I would have a hard time paying to unlock hardware that I know is [already installed] in the car,” Bell told The Drive. “There will be more acceptable models developed over the next few years—but without having an over-reliance on making a ton of money selling software.”
Smartcar notes that of those willing to pay up, 74% were satisfied with the cost. However, a notable majority (61%) said they wanted more features and services included based on what they already pay, while others (67%) were willing to pay more if “more valuable features” were provided. Most valued are emergency assistance, vehicle maintenance, and navigation. And the OEM push for virtual car keys? That ranked last.
To be fair, the survey is merely an overview. The responses are not broken down by make or model, which I wish it did. Or at the very least categorized drivers by vehicle purchase price. Luxury brand owners or those opting for high-end trims are probably more likely to pay for or try a subscription simply because they can afford to. However, if you put Wi-Fi in the cheapest car in America (e.g., Nissan Versa), owners probably won’t use it. The Versa does have a hotspot, BTW, which is available on its top-trim SR that costs about 22 grand out the door.
In the end, as with any consumer good, shoppers want any money spent to be worth it. From tipping fatigue to screen fatigue, everyone’s just tired. And broke.