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With most new cars now connected to the internet full-time, automakers can communicate with them long after they’ve been purchased. And, along with this enhanced connection, OEMs are beginning to experiment with subscription-based services for features such as heated steering wheels/seats, speakers, horsepower, and suspension, all of which are becoming increasingly controlled by software.
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This development could also completely change how cars are built. Instead of multiple models offering different trim levels, manufacturers could create a single model with luxury features becoming available as an add-on monthly fee. Brands like BMW, Mercedes, GM, and Hyundai are among the companies that have already begun experimenting.
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Pump the brakes (while it’s still free!). Dealers and drivers aren’t so keen on the idea, but for different reasons:
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A 2022 Cox Automotive study found that a mere 25% of shoppers would consider purchasing a car that required ongoing subscription fees.
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Many dealer groups are similarly against the move because of the amount of revenue that could be taken from dealerships every year and are even working to involve state legislatures in the matter.