π OPINION: NYC & Other American Drivers Should Reject Vehicle "Micro-Subscriptions"
BMW unveiled a subscription offering for heated seats in South Korea. Will vehicle "micro"-subscriptions be a new thing? How would (should) NYC & other American drivers react?
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube βΆοΈ
We know a thing a thing or two about BMWs given the vehicle fleet we started more than five years ago ONLY consisted of BMWs (3 Series, 5 Series, 7 series, X5s). Most BMW customers in the Northeast will tell you the Cold Weather Package is usually a must have (In NYC, December to February π₯Ά is peak heated seat season π‘οΈ).
Although BMW add-on feature βpackagesβ and prices can change with make and model year, how it generally looked historically was that heated front seats (driver & front passenger) WERE standard in BMWs and the Cold Weather Package, typically was an add-on that cost around $1,500 (pre-sales tax) and included high speed headlight washers, a heated steering wheel and heated seats for rear passengers (FYI β heated rear passenger seats is a feature that NYC for-hire transportation customers absolutely love π) .
The BMW Cold Weather Package is now called the Climate Comfort Package and is a $1,350 (pre-sales tax) add-on, but now includes heated armrests! However, it does seem like heated front seats are no longer standard, but requires a customer to buy them via a vehicle options package. So, doing quick napkin math, you might be wondering what the big deal is regarding BMWβs subscription offering vs. a larger upfront charge. For example, instead of paying $1,350 upfront you could pay $20 per month for the 5 years that you own the car (letβs say) or $20 per month * 12 months * 5 years = $1,200 (in fact, a bit cheaper then the upfront payment).
However, we think that is very flawed thinking and math for several reasons.
Do You Own A Car If Many Core Options Require A Subscription?
As an ars Technica piece pointed out, a BMW move to make Apple CarPlay a subscription option backfired in the North American market. At the same time, people happily pay for SiriusXM radio or Roadside Assistance subscriptions for their vehicles, but these are more service offerings that customers are trained to think of in a subscription context. Features like heated seats are, we believe, perceived by many to be more fundamental to the functioning of a vehicle and its resale value.
Think about it π€β¦If you tried to sell your car to another person, a huge part of pre-owned vehicle marketing is the features a car has. If many of the features, such as heated seats, are subscription-based then what do you think happens to the value you can get from the car that you βownβ? In fact, do you really own a vehicle, if many of its features are controlled by OEM (vehicle manufacturer) subscriptions?
For now, this is a hypothetical issue that many US-based drivers wonβt face for years, but something which we at AutoMarketplace.com have a STRONG OPINION about. Similar to how we respect Elon Muskβs vision for the future and commend him for standing up Tesla / American EV industry from essentially nothing, we DO NOT AGREE with βsoftware-mindedβ automotive businesses trying to lock people out of their vehicleβs features OR forcing you to only get YOUR vehicle repaired at THEIR service centers. WE ARE STAUNCH SUPPORTERS OF THE βRIGHT TO REPAIRβ MOVEMENT, IF YOU WILL.
Weβve spoken about this before (see below π) and weβll continue to speak about it. One of our main goals at AutoMarketplace.com is to support independent auto repair & service shops and customer friendly dealerships that help you maintain the car that YOU OWN OR LEASE, not a vehicle that A CAR COMPANY CONTROLS. Obviously, if & when autonomous vehicles arrive, dynamics can change. However, WE STILL THINK, people should have the option to own and repair their own vehicle even if itβs self-driving!
One of our main goals at AutoMarketplace.com is to support independent auto repair shops and customer friendly dealerships that help you maintain the car that YOU OWN OR LEASE, not a car that a CAR COMPANY CONTROLS. Obviously, if & when autonomous vehicles arrive, dynamics can change. However, WE STILL THINK, people should have the option to own and repair their own vehicle even if itβs self-driving!
- AutoMarketplace.com Team
As always, let us know your thoughts below or by emailing us at info@automarketplace.com?
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube βΆοΈ