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When BMW started charging $18 per month for heated seats in 2022, the backlash was swift and brutal. Customers united to discourage automakers from encouraging this behavior, fearing it would encourage avarice.
“You’ve already paid for it!” cried one Redditor. “The fucking hardware is in your car and you paid!”
Customers complained that a hardware feature subscription only makes sense if the upfront cost is low or nonexistent, not after spending $50,000 on a luxury car.
Autocar’s interview with BMW board member for sales and marketing Pieter Nota suggests the company will no longer charge customers to activate hardware-based functions. However, Nota said BMW plans to add on-demand software services like driving and parking assistance to future models. The company is improving car connectivity with over-the-air updates.
“We thought we would provide an extra service to the customer by offering the chance to activate that later, but user acceptance isn’t that high,” Nota told Autocar. I always say that perception is reality, and people think they paid double when they didn’t. We stopped that because of that.”
Smartphone users are used to paying for and downloading software, so they accept it.
Software subscriptions are also being introduced by other automakers to boost revenue. Tesla famously charges $12,000 for its “Full Self-Driving” driver assistance system. GM hopes to have a Netflix-sized subscription business by 2030 by selling OnStar in-vehicle concierge services.
