Subscriptions fees make its way onto used cars

Connected tech has given carmakers a direct line of communication between the brand and the customer.

With connected car technology becoming more and more common over the last couple of years, it isn't surprising to see a number of vehicles with the tech now make their way onto the second-hand market. However, with connected tech now entering the used market, it has brought subscription fees with it as well.

According to reports, this has called into question whether automakers should control features in a car, once it's legally taken over by another party. However, car companies see this as a huge cash cow for the future and now want to branch out into used cars too.

As per a study last year, 75% of new car buyers were unwilling to pay additional subscription fees and felt that features and services should be part of the vehicle's initial cost. However, this hasn't stopped the industry from charging extra for various features and services. This includes unlocking extra power, access to navigation, self-driving tech, heated seats and many more.

Connected tech has given carmakers a direct line of communication between the brand and the customer. This has allowed interaction between customer and brand to shift from the occasional dealership visits to continuous contact, throughout the vehicles' ownership period.

In 2021, General Motors stated that the brand is expected to generate $25 billion annually by 2030 based only on subscription fees. Stellantis also announced that it has planned $23 billion in yearly subscription revenue by the decade-end.

Source: CarScoops